[Editor’s note: The U.S. Small Business Administration and Treasury announced that lenders with $1 billion or less in assets can start making Paycheck Protection Program loans on Jan. 15. The application window will open for all lenders Jan. 19.]
The AICPA expects the federal government to open the application process for all lenders participating in the final round of the Paycheck Protection Program by Friday, and encourages CPA firms to move the process forward. request for small business customers seeking relief.
The Small Business Administration (SBA) began accepting new applications on a limited basis this week through community financial institutions. But confusion over when to choose other lenders has led to anxiety among small businesses and their advisors.
“We believe the full program needs to go live as soon as possible and we fully support the Treasury Department and the SBA in reopening the program for all lenders by Friday,” said the President and CEO of AICPA, Barry Melancon, CPA, CGMA. “What we’ve been telling CPA firms is to prepare and get to work. All indications, based on contributions from Treasury and SBA, are that there will be sufficient funding to meet all “first draw” and “second draw” PPP requests, so companies can help. to alleviate any concerns their customers might have. “
The AICPA has advised companies to collect key information from their clients, such as average monthly payroll amounts, quarterly income comparisons for second-draw borrowers, and other documents needed to speed up the process. Compared to the program’s initial launch in April 2020, companies now have substantial business rescue experience, more guidance and better tools.
The AICPA, CPA.com and the fintech company Biz2Credit in September launched a financing platform for CPA companies, the CPA business financing portal, to assist practitioners in helping small businesses through the cancellation of PPP loans. The portal, which has been used by thousands of businesses, has been updated to accept so-called PPP2 applications and over 3,000 applications have already been pre-populated.
“Small businesses should expect more scrutiny in this cycle of PPP applications,” said Erik Asgeirsson, president and CEO of CPA.com, the business arm of AICPA. “The SBA is checking more for possible fraud and, in some cases, asking for more validation. It’s important that businesses and their advisors get it right, so that requests don’t get stuck and pushed back into the queue. This is why we believe it is essential that companies use the most robust set of tools that are currently available. “
The CPA business finance portal offers a free basic service, as well as tiered subscription plans for businesses that want a direct path to finance loans through an SBA approved lender in order to ensure they receive agent fees.
“It is essential that business owners work closely with their trusted business advisors, especially their CPAs, to ensure that they are eligible for the maximum loan amount and provide the proper supporting documentation,” Rohit said. Arora, CEO and co-founder of Biz2Credit. “Preparing now is the best way for businesses to make sure they get the money they need.”
AICPA executives will discuss the latest developments in PPPs and their implications for CPAs and their small business clients during this week. AICPA Town Hall at 3 p.m. ET on Thursday. For more information on AICPA’s business resources on PPP, please visit aicpa.org/sba. More details can be found on the CPA’s corporate finance portal at cpa.com/business-funding.
