What would you like to know
- The PPP loan application deadline is March 31st.
- CPAs and borrowers face “pressing” tax and compliance challenges.
- Biden’s decision to temporarily limit nominations has benefited women and minorities.
The American Institute of CPA urged lawmakers on Wednesday to extend the March 31 application deadline for the Paycheck Protection Program by at least 60 days, citing the “pressing” tax and compliance challenges facing small businesses and CPAs.
“Important operational issues [exist] as part of the PPP process which results in urgent challenges and significant complexity for many small business borrowers trying to enter the SBA system, and delays in processing once in the system ”, Lisa Simpson, vice president of business services at AICPA, told members of the House small business committee.
Extending the PPP application deadline by at least 60 days will allow the Small Business Administration “to resolve its technical issues, provide essential advice, and work with lenders and borrowers so that small businesses can navigate the market. apply for and receive a loan, ”Simpson said.
the Federal Reserve Board Monday said it would extend its three-month paycheck protection program liquidity facility through June 30, to “provide continued support for the flow of credit to small businesses” through the P3.
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 paycheck protection program.” , created by the CARES Act, to help small businesses “fully bear the costs of wages and other business expenses”.
Today, Velázquez continued, “PPP continues to provide the funding it urgently needs. 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 are vaccinating millions of Americans every day. This is cause for optimism, 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 reopened in 2021, CPAs also help clients understand “the interaction between P3 and Employee Retention Credit (ERC) to ensure compliance with both programs.”
“This is a complex issue and IRS advice is still needed in some areas,” Simpson said.