UPDATE: The application window for Paycheck Protection Program (PPP) forgivable loans opens Friday, Jan. 15, for lenders with $1 billion or less in assets, the US Small Business Administration and Treasury announced. The opening, which will take place at 9 a.m., applies for both first- and second-draw PPP loans.
The program will begin accepting applications for first- and second-draw loans from large lenders on Tuesday, Jan. 19. PPP reopened Monday, Jan. 11, initially for community financial institutions (CFIs) to make loans to first-time PPP borrowers. CFIs were allowed to make second-draw loans to previous PPP recipients starting Wednesday.
More details: “PPP application dates announced” (Journal of Accountancy, Jan. 13)
UPDATE: The Treasury Department and the IRS issued guidance on Wednesday, Jan. 6, allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP). Revenue Ruling 2021-02 reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27.
#PPP2 funding has been approved. How can your firm prepare? You can start by watching a free on-demand webcast with the AICPA, CPA.com and Biz2Credit to get expert insights on the tools and capabilities firms need to effectively deliver PPP-related services to clients.
The on-demand webcast “Preparing for PPP – Overview of the CPA Business Funding Portal and the CPA Firm Opportunity” (recorded Dec. 30, 2020), teaches more about how the CPA Business Funding Portal can help deliver valuable and efficient PPP business relief advisory services for your clients.
Erik Asgeirsson, President and CEO of CPA.com, provides a brief overview of the newly passed business relief legislation, as well as insights on opportunities for firms to be proactive and strategic with PPP2.
CPAs can get the latest insights and analysis on the topics affecting the profession on the regular AICPA Town Hall Series. There is no charge for AICPA members to join the live session (which offers CPE). On-demand versions are open to everyone and can be found on the AICPA YouTube Channel.
You are invited to register to attend to attend the next Town Hall Series on Thursday, Jan. 7, at 3 p.m.
The CPA Business Funding Portal
The AICPA, CPA.com and fintech leader Biz2Credit launched in September a financing platform for CPA firms, the CPA Business Funding Portal, to help practitioners as they assist small businesses through PPP loan forgiveness, as well as any other small business financing options. The portal has been updated to pre-process the so-called PPP2 applications and will also incorporate the latest guidance.
“We’ll be ready to go almost immediately after the SBA issues its new forms and guidance,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts on small business finance. “We already have a way for CPA firms to start preparing PPP applications for their clients, and we will be ready to receive submissions as soon as the final rules are issued. The CPA portal offers an efficient, centralized platform for CPAs to manage relief funding for their small business clients, and we’ll continue to update and evolve it.”
Among its features, the CPA Business Lending Portal offers:
- A free basic service for small businesses or CPAs to use for PPP forgiveness and PPP2 applications
- A more robust set of tools in a single platform to help CPA firms manage multiple clients in a standardized way
- Payment of applicable agent fees for firms registered for one of the commercial plans available through the platform – this helps resolve a top issue for many CPAs in the first phase of PPP
- Direct integration into the SBA E-Tran system to accelerate loan decisioning times and increase decision transparency for CPA firms’ small business clients
- Access to the power of AICPA technical input and calculators
“We’re encouraging firms to leverage platforms for PPP2 versus working on the many intricacies of the legislation for their own internal calculators,” Asgeirsson said. “Building these internal tools is not the best use of their time when there is so much for them to focus on in advising their clients.”