WASHINGTON, D.C.--(BUSINESS WIRE)--The American Institute of CPAs today renewed its call for swift passage of legislation to extend and expand the Paycheck Protection Program (PPP), which provides critical relief for small businesses impacted by the Covid-19 pandemic.
“From the beginning, we have advocated for the support of small businesses, their survival and their ability to employ people,” said AICPA President and CEO Barry Melancon, CPA, CGMA. “It’s apparent that to increase the odds of many small businesses getting through this crisis, more governmental support is essential.”
While the PPP proved to be an effective bridge for many companies affected by workplace restrictions due to the pandemic, more resources are urgently needed to help Main Street businesses that continue to struggle. Recent media articles document the impact of these woes:
- Data from Yelp, the restaurant and services review site, shows a 34 percent increase in business closures since mid-July, according to CNBC.
- Politico, citing Drexel University statistics, reported that small businesses with 50 employees or less lost nearly 18 million jobs in the pandemic, with close to half of those jobs returning as states reopened – yet the recovery unmistakably tailed off in mid-June.
- Colder temperatures are expected to exacerbate challenges for restaurants, bars and hospitality businesses, many of which will continue to face restrictions on indoor seating.
“Money still remains unspent from the last PPP authorization, but businesses can’t currently tap those funds,” said Erik Asgeirsson, president and CEO of CPA.com, the AICPA’s business and technology arm. “We need to allow new loan applications and add additional resources to help small businesses during this critical time. We support efforts to enact PPP 2.”
Asgeirsson made his remarks at the AICPA Town Hall, a weekly virtual update that focuses on the PPP and related topics and draws an audience of as many as 5,000 CPAs. The AICPA issued six recommendations for pandemic relief-related legislation in July, several of which touch on the Paycheck Protection Program.
CPAs have played a key role in assisting small businesses with PPP applications and the program’s loan forgiveness process. The AICPA has supported efforts to streamline and simplify the PPP process through recommendations from a small business funding coalition it leads. The AICPA, CPA.com and Biz2Credit have also created a free tool for borrowers and CPAs that helps automate the loan forgiveness process, pppforgivenesstool.com.
To see the AICPA’s resources for CPAs on the PPP, please visit this page.
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.
CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.
Our company’s core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.
A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession. For more information, visit CPA.com.