What would you like to know
- The PPP loan application deadline is March 31st.
- CPAs and borrowers face “pressing” tax and compliance challenges.
- A decision by Biden to temporarily limit nominations has benefited women and minorities.
The American Institute of CPAs urged lawmakers on Wednesday to extend the paycheck protection program application deadline by at least 60 days, citing “pressing” tax and compliance challenges facing small businesses and CPAs.
“Important operational problems [exist] in the PPP process which results in pressing challenges and significant complexity for many small business borrowers trying to enter the SBA system, and processing delays once in the system, ”Lisa Simpson, vice president of services to business at AICPA, told members of the House small business committee.
Extending the PPP application deadline by at least 60 days will give the Small Business Administration an opportunity to “resolve technical issues, provide essential advice, and work with lenders and borrowers so that small businesses can navigate the application process and receive a loan, “said Simpson.
The Federal Reserve Board said on Monday it would extend its paycheck protection program liquidity facility by three months until June 30, in order to “provide continued support to the flow of credit to small businesses” via the PPP.
Representative Nydia Velázquez, DN.Y., chair of the committee, said in her opening remarks that “one of Congress’ most effective ways of delivering relief to small businesses was through the Check Protection Program. payroll “, created by the CARES Act, to help small businesses” fully meet the cost of wages and other business expenses. “
Today, Velázquez continued: “The PPP always provides urgently needed funding. The program accepts first and second draw loan applications and approved 2.1 million loans totaling $ 156.2 billion in 2021. “
Across the country, “the number of cases, hospitalizations and deaths are moving in the right direction,” Velázquez continued. “At the same time, we immunize millions of Americans daily. It is a reason to be optimistic but it does not mean that this crisis is over. The pandemic has cost small businesses unprecedented damage and it will be a mistake to back down [PPP] abruptly support.
Concerns of CPAs
Simpson told lawmakers that in addition to the challenges of “upstream compliance checks” for new PPP loan applications when the program reopens in 2021, CPAs are also helping clients determine “the interaction between PPP and Employee Retention Credit (ERC) to ensure compliance with both programs.
“This is a complex issue and guidance from the IRS is still needed in some areas,” Simpson said.