eAlert: CPAs as Agents for Small Business Administration Paycheck Protection Program Loans

03 Apr 2020  |  1533
eAlert: CPAs as Agents for Small Business Administration Paycheck Protection Program Loans

eAlert: CPAs as Agents for Small Business Administration Paycheck Protection Program Loans

We at Entigrity are always making an effort to help our clients and make their life better. Many of our clients are confused and doesn’t much need clarity on with respect to Paycheck Protection Program ('PPP') loans and their role. The goal of PPP is to help small-business owners and their employees ride out the economic storm created by the pandemic. Small businesses with fewer than 500 employees are eligible to apply under this Program.

Guidance promulgated by the Small Business Administration ('SBA') earlier this week created some confusion regarding the accountant’s role and whether accountants are considered 'agents' or 'authorized representatives' when performing these services. CPAs who assume the role of an 'agent' or an 'authorized representative' will create conflict of interest and independence impairment issues.

We do not believe the promulgated guidelines are intended to define accountants as agents in all instances when assisting borrowers with the application process.

The AICPA Statement on CPAs as Agents for PPP Loan Applications reinforces best-practices guidance for assisting clients with these applications. Also there is confusion regarding chargeability of Fees and AICPA has given their guidance on the same. Also treasury department has issued guidelines to the SBA-Certified Lenders

Entigrity has developed the following engagement letter templates and sample response to lenders for your reference:

Small businesses and sole proprietorships can apply for PPP loans beginning today. Independent contractors and self-employed individuals can apply beginning April 10. Lenders will not require collateral or a personal guarantee. Borrowers must certify that their business has been affected by the coronavirus slowdown. And businesses must have been in operation as of Feb. 15 to be eligible to apply.

As always, Entigrity makes best effort to help accounting community especially in time of crisis.

                                                                                                           THERE IS LIGHT AT THE END TUNNEL, KEEP GOING !

Entigrity™ is a trusted offshore staffing partner to over 500+ accountants, CPAs and tax firms across the US and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation or any other task for 75% less cost. As a firm 'run by accountants, for the accountants', Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management, still you are left with least to worry about compliance, payroll taxes, overheads or any other benefits.

About The Author
Director, Client Relations

Christopher Rivera, Chris serves as a Director of Client Relations and Business Development at Entigrity. He is an expert at leading and managing teams actively from the front. His expertise in sales, training, coaching, mentoring and influencing combined with his competitive nature makes him a strong leader.  Chris has traveled through the length and width of the country and has spoken with more than five thousand CPAs, understanding their challenges and limitations. On the grounds of that, he can now easily provide opinions and solutions that can be immensely helpful to the professionals. He has also represented Entigrity at a number of major accounting conferences and networking events.

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