The AICPA known as on Congress to lengthen the application period for the Paycheck Defense System (PPP) by at the very least 60 days.
The present-day deadline for PPP apps is March 31, but a lot of purposes have operate into problems in the U.S. Small Small business Administration’s (SBA’s) PPP processing platform, which has refused to accept some apps because of to program complications and has caught 1000’s of other programs in validation checks created to stop fraudulent purposes from staying permitted. These validation checks can produce dozens of distinctive error codes, numerous of which demand major guide labor on the part of loan providers and debtors to rectify.
“The PPP course of action issues are many,” Barry Melancon, CPA, CGMA, AICPA president and CEO, reported in a press launch Tuesday. “It is very well documented that little firms, nonprofits, and the CPAs who advise them are experiencing mistake codes when publishing a PPP financial loan software. We carry on to offer enter to the [SBA] about these difficulties and are hopeful far more progress will be built soon.”
Introducing to the worry is an announcement the administration of President Joe Biden manufactured Feb. 22 stating that the PPP mortgage calculation formulation for sole proprietors, self-employed individuals, and unbiased contractors would be adjusted to aid people men and women obtain more monetary aid. The SBA has nevertheless to release assistance detailing these adjustments, even though it is predicted to do so this 7 days.
The Biden administration also said in its release that the SBA would take PPP applicants only from companies with fewer than 20 staff through a two-7 days period that started Feb. 24 and ends March 9.
“We applaud the Biden administration’s efforts to make PPP extra inclusive and available to underserved firms,” Melancon mentioned. “However, these improvements make it even more difficult for the smallest enterprise entities — the self-used and independent contractors — to meet the March 31 deadline.”
Even with the processing difficulties, the SBA permitted practically 2.2 million PPP loans for a complete of $156 billion from the program’s reopening on Jan. 11 by Feb. 28. Congress allocated $284.5 billion to the software in the Financial Assist to Tough-Strike Tiny Companies, Nonprofits, and Venues Act, P.L. 116-260.
The American Rescue System Act of 2021, H.R. 1319, which is beneath thought in the Senate following currently being passed by the Property early Feb. 27, delivers $7.25 billion much more in PPP resources but does not extend the March 31 deadline. The AICPA proposed in its launch that Congress extend the deadline in a independent vote.
AICPA professionals examine the newest on the PPP and other modest business enterprise aid courses for the duration of a digital town corridor held every single other 7 days, which includes March 4 at 3 p.m. ET. The webcasts, which offer CPE credit score, are free of charge to AICPA customers and $39.99 for nonmembers. Go to the AICPA City Hall Collection webpage for a lot more data and to sign-up.
The AICPA’s Paycheck Protection System Resources web page properties methods and resources created by the AICPA to help address the economic impact of the coronavirus.
Accounting firms can get ready and method purposes for the PPP on the CPA Organization Funding Portal, made by the AICPA, CPA.com, and fintech husband or wife Biz2Credit score.
For much more news and reporting on the coronavirus and how CPAs can deal with problems relevant to the outbreak, stop by the JofA’s coronavirus means webpage or subscribe to our e mail alerts for breaking PPP information.
— Jeff Drew ([email protected]) is a JofA senior editor.