WASHINGTON–The American Institute of CPAs (AICPA) is urging its members to work with businesses to participate in the federal government’s new Paycheck Protection Program.
The program has allocated $350 billion for businesses of up to 500 employees for loans to cover payroll expenses if the company does not lay off any workers. The loans can eventually be forgiven.
“Gathering documentation for the application is expected to be facilitated by CPA firms and payroll processors,” the AICPA said. “As with any major legislation, there will continue to be questions regarding further specific guidance that will need to be addressed.”
The AICPA said the need for fast action is clear after more than 10 million people – the vast majority of whom likely worked for small businesses – filed unemployment claims in the past two weeks, noted AICPA President and CEO Barry Melancon.
“This is a huge undertaking that requires close coordination among five players: small businesses, the government, lenders, payroll processors and CPA firms,” Melancon said. “Treasury and the SBA have done their part by implementing the program and issuing interim rules. It’s now up to the nation’s 44,000 CPA firms, the banking sector and the payroll processing industry to mobilize and help get funds quickly into the hands of small businesses so they can protect their employees.”
‘Urgency Now’
The AICPA had advocated for funding for the Payroll Protection Program prior to passage.
“There’s an urgency now to move to implementation,” said Erik Asgeirsson, president and CEO of CPA.com, the AICPA’s business and technology arm. “We are working with firms, payroll providers and lenders to drive consistency in the interpretation of guidance. Small business owners need support in the application process. The critical piece of information for obtaining PPP funds is the payroll data. We are working with our coalition and discussing with lenders the best way to deliver this. It’s a critical time for us to work together.”