With reports that the government’s initial $349 billion for the Paycheck Protection Program (PPP) will soon be exhausted, the AICPA called on Congress to take immediate action to approve additional funding of this CARES Act program to help small businesses and their employees.
The AICPA acknowledged the work of the U.S. Department of the Treasury and Small Business Administration to provide more detailed information about the rapidly deployed program’s requirements and rules. However, the group noted that the initial pool of funds set aside for the program will clearly not be enough to meet the relief requirements of small businesses during this unprecedented crisis.
Beyond additional funding, the AICPA is also suggesting greater flexibility on timing of the PPP’s eight-week payroll support cycle, indicating that it may make more sense to delay the start of this cycle until restrictions are lifted and businesses can operate again.
“This program was rolled out with remarkable speed and while there have been some bumps along the way, small businesses view the Paycheck Protection Program as a critical lifeline,” says AICPA President and CEO Barry Melancon. “We need to extend that support so we can protect workers and ensure our economy can rebound quickly once restrictions are lifted.”