COVID-19: SMALL BUSINESS FUNDING APPLICATIONS

March 31, 2020 

AICPA CAME OUT WITH THE FOLLOWING INFORMATION FOR SMALL BUSINESSES AFFECTED BY COVID-19

The Department of Treasury has released the Paycheck Protection Program application and supplemental information, all available on their website.

• Here is the link to the Paycheck Protection Application and accompanying borrower guide;
• It is recommended that you contact your local banker to discuss the lender guide to ensure they are aware of program requirements. While it is our understanding that virtually all banks and credit unions will be able to process program applications, you should verify that your bank intends to support the program.

Note that the lender guide lists accountants as approved agents of loan applicants. 

As a reminder, funds from this program:

• Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;
• Are 100% forgivable if used for the above purposes; and
• Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals.

While the application and documentation requirements are simple, we need to consider your intentions with other Small Business Administration loan programs with respect to funding possibilities.

The Paycheck Protection Program is a win for Main Street, and responsive to the work AICPA has been doing with the AICPA-led coalition seeking payroll relief for small businesses. In our efforts, we will continue to analyze and share information coming from the Treasury Department and SBA