Jan 15, 2021
Accountants played a crucial role in helping millions of
organizations, most of them small businesses, receive $525 billion
in Paycheck Protection Program loans last year.
Now, the PPP is back and businesses will again be looking to
CPAs for advice and assistance in accessing the program, which
provides forgivable loans that borrowers can use for payroll and
other essential expenses as the COVID-19 pandemic continues to roil
What do CPAs need to know about the new PPP? How is it different
from the program that ran for five months before its loan
application window closed in August? And what should accountants be
doing to help businesses access the $284 billion available in the
PPP’s second iteration?
Those topics and more are addressed by Erik Asgeirsson,
president and CEO of the AICPA’s business subsidiary CPA.com, and
Lisa Simpson, CPA, CGMA, the AICPA’s vice president–Firm
What you’ll learn from this episode:
- When lenders can start submitting PPP loan applications to the
U.S. Small Business Administration.
- Details about the new PPP second-draw loans.
- Why many banks won’t be submitting PPP applications at the
beginning of the application period.
- What the AICPA has been doing to support the accounting
profession with the PPP over the past nine months.
- Why it is important for PPP borrowers to have two paths they
can take in pursuing a second-draw PPP loan.
- More information about the CPA Business Funding Portal (see
link in resources below).
- What CPAs can do to help businesses prepare for increased SBA
scrutiny of PPP loans.
- The importance of helping businesses know their E-Tran number
from their first PPP loan.
- Why firms will play a more important role in the second round
of the PPP.
- The importance of keeping the intent of the PPP in mind when
choosing the accounting method for calculating the decline in gross
receipts to determine whether a business qualifies for a
- Whether a business seeking second-draw PPP loans must spend all
its first-draw PPP loan before the second-draw funds are
- That some banks may require PPP borrowers to file for
forgiveness on their first loan before processing a second-draw