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Focus Management Group: November Month in Review

Each month we post an overview article that covers our recent company articles, announcements, and insights. Below is for the month of November.

Focus Management Group - bipartisan infrastructure bill

How does the Bipartisan Infrastructure Bill impact businesses in 2022 and beyond?

As companies are planning for 2022, the Infrastructure Investment and Jobs Act, which is also known as BIF or Bipartisan Infrastructure Framework or the Bipartisan Infrastructure Bill (the “Bill”), has been referenced as a source of additional revenue and potential liquidity by a variety of industries and businesses.

It is important to develop an understanding of what is in BIF and evaluate the timing of impacts on different businesses. While the PPP loans and the ERC program provided immediate liquidity for businesses that qualified, the Infrastructure Investment and Jobs Act impacts may be less immediate, but longer term for companies that are able to take advantage of the way the new dollars will be spent.

This article should assist in developing an understanding of the types of businesses that may be positively and negatively impacted by the Bipartisan Infrastructure Bill.

Focus Management Group - liquidity

Looking for Liquidity

With 2022 around the corner, companies need to plan for their working capital needs, and evaluate their loan agreements for future compliance. The combination of inflation, commodity price changes, labor issues, and supply chain disruptions have created new stresses on the operating cycle, and therefore, on the existing line of credit structures. They have also stressed financial performance which in turn could impact loan covenants tied to financial and operating performance.

What are the next steps?

Focus Management Group - infrastructure ERCs

The "Infrastructure Investment and Jobs Act" Has Impacted Q4 ERCs!

When the Infrastructure Investment and Jobs Act was signed into law on November 15, 2021 the Q4 Employee Retention Credits (“ERCs”) were eliminated for most businesses. Only recovery startup businesses that began operations February 15, 2020 or after and meet certain criteria would be able to continue to qualify for Q4 ERCs, and the amount is limited to a $50,000 maximum for the business for the quarter.

Read the full article for the details you should know.

Focus Management Group - Q4

Is Q4 2021 Activity Foreshadowing a Change?

2021 is drawing to a close, and lenders and borrowers are asking what to expect in 2022. In March of 2020, when the first Covid-19 lockdowns began, there was a great deal of fear and uncertainty, both for individuals and for businesses. As the government pumped liquidity into the market, many businesses used those resources to survive through the period.

Now in late 2021, as the liquidity sources have expired, and businesses must generate cash flow based on their performance, the level of performance stress is increasing. Not only has the “free money” been used, but now businesses are dealing with inflation, commodity price changes, labor issues and supply chain disruption as stresses to their financial performance.

What are the next steps? Read the full article below!

Focus Management Group - inflation supply chain

Are Inflation, Labor Issues, Commodity Price Changes, & Supply Chain Problems Here to Stay?

As companies and lenders evaluate performance risk and expectations for 2022, it is clear that emerging trends need to be considered throughout 2022. At this point, it is unrealistic to consider inflation transitory, or to believe there is a magic switch that will eliminate labor and supply chain issues.

These are trends businesses need to be prepared to effectively manage to ensure successful operating performance in 2022. The tools and techniques that we have addressed are a necessary part of the analysis and planning that a successful management team employs as they plan for 2022 and beyond.

What are the best techniques for success? Read the full article below!


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