Paycheck Protection Act

The AICPA has released an update concerning recommendations for the Paycheck Protection Program.

The Department of Treasury has released the Paycheck Protection Program application and supplemental information, all available on their website. We strongly recommend that CPA firms immediately:

  1. Review all four documents listed under the “Assistance for Small Businesses” section;
  2. Share the application and accompanying borrower guide with their clients ASAP; and
  3. Contact your local banker to discuss the lender guide to ensure they are aware of program requirements. While it is our understanding that virtually all banks and credit unions will be able to process program applications, you should verify that your bank intends to support the program.

Also, be aware that the lender guide lists accountants as approved agents of loan applicants. AICPA will be providing additional guidance on best practices in the near future.

As a reminder, funds from this program:

  1. Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;
  2. Are 100% forgivable if used for the above purposes; and
  3. Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals.

While the application and documentation requirements are simple, make sure you review all the documents before advising any clients. Additionally, consider your clients’ intentions with other Small Business Administration loan programs when advising them on funding possibilities.

The Paycheck Protection Program is a win for Main Street, and responsive to the work we have been doing with the AICPA-led coalition seeking payroll relief for small businesses. In our efforts, we will continue to analyze information coming from the Treasury Department and SBA, and we will provide the Administration with feedback and guidance throughout the process.

We will also continue to provide you with updates as we receive new information. Please watch your email and follow our YouTube account for additional details as they are released.