PPP application dates announced

January 13, 2021

By Jeff Drew, Journal of Accountancy

The application window for Paycheck Protection Program (PPP) forgivable loans will open Friday 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. ET, 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 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.

CFIs typically work with underserved small businesses. SBA and Treasury granted the initial early access to PPP so these small businesses, which include many minority- and women-owned concerns, could get first crack at accessing the $284.5 billion in PPP funding approved in the part of the $900 billion COVID-19 relief bill that was signed into law on Dec. 27.

The AICPA issued a news release earlier Wednesday encouraging accounting firms to aggressively advance PPP applications for small businesses in anticipation of the SBA beginning to accept applications from all lenders.

“We believe the full program needs to go live as soon as possible and we fully support the Treasury Department and SBA reopening the program for all lenders,” said AICPA President and CEO Barry Melancon, CPA, CGMA, in the news release. “What we’ve been telling CPA firms is be prepared and get to work. All indications, based on input from the Treasury and SBA, is there will be enough funding to meet all of the ‘first draw’ and ‘second draw’ PPP applications, so firms can help alleviate concerns their clients may have.”

The AICPA has been advising firms to collect key information from their clients such as average monthly payroll amounts, quarterly revenue for second-draw borrowers, and other required documentation to speed the process.

AICPA executives will discuss the latest PPP developments and their implications for CPAs and their small business clients at this week’s AICPA Town Hall at 3 p.m. ET on Thursday.

PPP funding, forms and guidance
Accountants played a key role in helping small businesses secure needed funding during the first iteration of PPP, which provided $525 billion in forgivable loans over five months before it stopped accepting applications in August. The $284.5 billion in fresh PPP funding includes set-asides of $35 billion for first-time loans and $15 billion set aside for CFIs.

The SBA and Treasury issued guidance Jan. 6 for the new PPP, which shares many of the same rules as the old PPP but also has some significant differences. Application forms for first- and second-draw loans were released a couple of days later.

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