AICPA Says Sole Proprietors Are Unfairly Impacted by PPP Deadline and Latest SBA Guidance
Summary
On March 5, 2021, the American Institute of CPAs (AICPA) issued a statement urging the Small Business Administration to extend the Paycheck Protection Program application window by at least 60 days and to make its latest guidance retroactive. AICPA president and CEO Barry Melancon called the March 31 deadline unrealistic, saying many PPP lenders needed at least one week to update their systems for the new guidance, which left small businesses less than two weeks to submit a complete and accurate application. The statement says the guidance is unfair to sole proprietors who received a smaller PPP loan than they would now be eligible for. The AICPA describes itself as the world's largest member association representing the CPA profession, with more than 431,000 members.
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AICPA Says Sole Proprietors Are Unfairly Impacted by PPP Deadline and Latest SBA Guidance March 5, 2021 WASHINGTON, D.C., March 5, 2021 – The American Institute of CPAs (AICPA) today issued the following statement calling for the Small Business Administration (SBA) to extend the Paycheck Protection Program (PPP) application deadline and revise its latest guidance so it is more fair to all: “The PPP has been a critical lifeline for many small businesses, especially the millions of sole proprietors that are the foundation of the U.S. economy. Yet, the SBA’s last-minute guidance, coupled with the unrealistic March 31 st PPP application deadline, has created unnecessary confusion and anxiety. We strongly urge the SBA to revise its guidance to be retroactive and to extend the PPP application window by at least 60 days so everyone, including lenders, small businesses and the CPAs who advise them, has enough time to adapt to changing guidance and operational challenges,” said Barry Melancon, CPA, CGMA, AICPA president and CEO. “The March 31 deadline simply does not make sense. Many PPP lenders have said that they need at least one week to update their systems for this guidance before they accept new applications. That gives small businesses less than two weeks to submit a complete and accurate application. Also, the SBA guidance is unfair to the many sole proprietors that received a smaller PPP loan than they would now be eligible for. We have heard from many CPAs and small businesses that those who elected to apply for a PPP loan prior to the new guidance received a substantially smaller amount than those who submit an application today.” Additional Resources: About the American Institute of CPAs The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 431,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.
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