Interpretations Aim to Provide Clarity for Small Businesses and Lenders in Relief Process
The American Institute of CPAs (AICPA) today recommended a defined set of documents for lenders to rely on as well as some key clarifications in the Treasury Department and Small Business Administration’s Paycheck Protection Program (PPP) application process.
“Over the past few weeks, we have come together with our coalition and other key stakeholders to drive a common understanding and approach to implementation of PPP”
The $349 billion PPP is a key element of the $2.2 trillion CARES Act and is designed to speed relief to small businesses impacted by pandemic restrictions. While not meant to be comprehensive, the AICPA recommendations cover documentation for employers and sole proprietors, as well as clarifications for other key areas.
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“We are hearing from our firms and their clients about confusion as to which documents should be required as part of the PPP application process, as well as how to calculate key components of the forgivable loan,” said Mark Koziel, the AICPA’s executive vice president of firm services, “We have developed these recommendations to help minimize confusion for both our firms and the applicants and also to drive consistency with lenders. The Treasury Department and SBA have worked around the clock to deliver these important relief programs, and we are now playing our role by helping execute on the program.”
The recommendations were informed by discussions with an AICPA-led small business funding coalition and other stakeholders in the PPP process with ties to 44,000 CPA firms, 2.5 million small businesses and 30 million employees.
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“Over the past few weeks, we have come together with our coalition and other key stakeholders to drive a common understanding and approach to implementation of PPP,” said Erik Asgeirsson, president and CEO of CPA.com, the AICPA’s business and technology arm. “The effectiveness of the Paycheck Protection Program depends on the quick distribution of funds, so it’s crucial we minimize complexity for small businesses that desperately need a lifeline right now. We look to support that goal by helping create consensus and clarity around the key parts of the program.”
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