The Department of Treasury has released the Paycheck Protection Program application and supplemental information, all available on their website.
CPA firms may want to immediately:
- Review all four documents listed under the “Assistance for Small Businesses” section;
- Share the application and accompanying borrower guide with their clients ASAP; and
- Contact your local banker to discuss the lender guideto 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.
Also, be aware 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, make sure you review all the documents before advising any clients. Additionally, consider your clients’ intentions with other Small Business Administration loan programs when advising them on funding possibilities.
This is information should NOT be considered legal advice for CPAs from the ISCPA