This year has been challenging for New Jersey citizens. When state and local authorities issued stay at home orders and forced businesses to close, the economy ground to a halt. COVID-19 profoundly disturbed our financial systems.
The legislative changes we’ve seen so far this year have been record-breaking. The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act were signed in March and made significant changes to tax and employment law for American individuals and businesses.
Businesses continue to figure out new ways to drive revenue, manage expenses, and implement new measures to protect employees from COVID-19. The sudden shift to a business situation which months ago seemed impossible means there has been little time for much else.
According to the Association of Certified Fraud Examiners (ACFE) 2020 Global Study on Occupational Fraud and Abuse, employee corruption was identified as the leading source of fraud amongst nonprofit organizations. It was found that in 74% of the cases, either the Executive Director or Manager was the primary perpetrator of illegal activity.
The Paycheck Protection Program (PPP) has been a source of needed funding for many small businesses. The challenges presented by COVID-19 have resulted in drastically different business conditions that have left many on the brink of collapse.
The Treasury published a list of frequently asked questions (FAQs) to update applicants and borrowers when the program started. It is quite comprehensive, and most do not check it regularly, but there is important information outlined to consider.
Much of the news recently around the Paycheck Protection Program (PPP) has focused on the second round of funding outlined in the Paycheck Protection Program and Health Care Enhancement Act.
All of this against the backdrop of an extended stay at home orders and forced business closures mean many will continue to face challenging circumstances. The good news is that today, April 24, 2020, President Trump signed legislation that provides a combined $370B in additional funds for both the PPP and EIDL.
The number of restrictions and changes created by the COVID-19 emergency has left many business owners and employees with more questions than answers. The effect of stay at home orders and forced business closures have resulted in a drastic reduction in demand for certain products and many services.
The COVID-19 emergency has left many Philadelphia and New Jersey companies without revenue or means to generate cash flow. The combination of forced business closures, shelter-in-place orders, and general concern about exposure to the virus has left businesses without customers and dwindling demand.
