PPP Loan Forgiveness

What CPAs Should Be Doing Now



In the six months since the Paycheck Protection Program (PPP) was created, the only certainty about the program has been uncertainty.

The PPP came into being as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, which was signed into law March 27. With the coronavirus shutting down much of the U.S. economy, Congress created the PPP to assist millions of small businesses suddenly facing an uncertain future.  

The PPP was born in a flash — the U.S. Small Business Administration (SBA) and Treasury launched the program in only a week — and forged in a flurry of interim final rules and frequently asked questions (FAQs). That guidance often raised more questions, and many small businesses relied on CPAs to help chart a safe path through the chaos.

The program stopped accepting new applications on Aug. 8 after funding more than 5.2 million loans for a total of $525 billion. Nearly two months later, small businesses that received PPP funding are relying heavily on accountants to guide them through the process of seeking forgiveness for the loans while keeping an eye on potential additional funding from the federal government.

Borrowers who wish to apply for forgiveness and release the burden of their PPP loan are pressuring CPAs to help them move forward with the process. But, as has been the case since the beginning, much uncertainly still surrounds the PPP.

So what should CPAs be doing now? The wise course is to begin preparing the forgiveness application and stay on top of documentation requirements but also be patient with the process as substantial areas are settled. To help you explain the current situation to business owners and leaders, let’s take a look at a collection of PPP questions, key facts, and best practices.

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Source: Journal Of Accountancy

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