AICPA Town Hall User Manual
April 8, 2021
© 2021 Association of International Certified Professional Accountants. All rights reserved.
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AICP A Town Hall Agenda
1. Opening Comments & Policy Maker Update
2. Relief Programs Discussion
• Final Stretch PPP, ERC, EIDL, SVOG, RRP
3. Hot Tax Topics
4. Open Forum and Closing Remarks
2
2
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Presenters
3
3
Erik Asgeirsson
President & CEO
CPA.com
AICPA Subsidiary
@erikasgeirsson
Kristin Esposito
CPA
Dir.,T ax Policy & Advocacy
AICPA
Mark Peterson
Executive Vice President,
Advocacy
AICPA
Lisa Simpson
CPA, CGMA
VP, Firm Services
AICPA
@lisatsimpsoncpa
Cari Weston
CPA, CGMA
Director, Tax Practice & Ethics
AICPA
@cariwestoncpa
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Engagement With Stakeholders & Broad Ecosystem
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4
Government
• Treasury, IRS
• SBA
• Policy Makers
Business
Advisors
• 44K firms
• Other advisors
• AICPA Role
• Payroll Processers
• Tax & G/L data
• Other data
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Information
Providers
Lenders
• Banks
• Credit Unions
• Fintech lenders
Lawmakers Worried
about Small Business
Impact
• House Legislation
• Statements by Chairs of Small
Business Committees
• Statement from Chairman of
Ways and Means Oversight
Committee
5
Senate Finance Committee
Hearing
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• Senators eager to ask tough
questions
• Tyranny of the Calendar
Policy Maker Key Topics
• B iden $2.3 trillion infrastructure, tax plus plan
• Congressional oversight
• PPP Schedule C retroactive
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Summary of 2021 PPP Approved Lending as of 4/4/21
Top PPP Lenders of 2021 PPP
Biz2Credit Financial Subsidiary
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PPP Extension: Lender & Firm Activities
• Lender resolution of PPP application error codes
• Ongoing improvements, but still t housands of apps held up
• More capabilities being offered to resolve error codes
• Also working additional documentation needs
• Many firms are reviewing Schedule C clients
• Determining many c li ents were not aware of PPP eligibility
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• Some lenders have stopped receiving new PPP applications
• Other lenders plan to stop prior to funding r unni ng out
• SBA official stated funds forecasted to run out in April
High Interest: 2021 Draw One Applicants Getting 2
Information for clients who are seeking a 2nd Draw PPP
loan after receiving a 1st Draw loan in 2021.
• SBA initially did not permit 2nd Draw loan applications for
borrowers who only took their first PPP loan in 2021.
• New rule from SBA allows these borrowers to apply for and
receive their 2nd Dr aw PPP loan.
• Must certify that funds from first round hav e been used (or will be
nd
9
Draw
used) by the time the s econd PPP loan is received.
• To qualify for a 2nd Draw PPP loan, the client’s business must
have experienced a revenue reduction of 25% or greater due to
the COVID-19 pandemic.
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Increased Scrutiny on Applications
Depa rtment o f Justic e
– Targeting
PPP Fraudule nt Activ ities
S BA I ns pector G ener al D etail s A cti ons to C ombat F r aud in
T es timony Before C ongr ess
Fraud probes in the Small Business Administration’s pandemic-relief loan programs will
take 10 years to resolve, according to the agency’s watchdog.
SBA Inspector General
Hannibal
Ware said fraud is so widespread in the SBA’s
Paycheck Protection Program and Economic Injury Disaster Loan program that it will
take a targeted effort to oversee them and crack down on fraudulent activity, despite a
40% increase in staffing provided by recent legislation.
“Fraud investigations will be a decade-long effort due to the performance of
those loans
within
SBA’s portfolios, and the statute of limitations for fraud,”
Ware said Wednesday during a Senate Small Business Committee hearing.
While the twin programs have saved businesses from failing due to the pandemic, they
have also fallen prey to fraudsters taking advantage of the government.
The SBA has made or guaranteed more than 17 million loans and grants, providing
about $910 billion so far. But financial institutions have flagged more than 41,000
suspicious activities related to the programs from last April through October, William
Shear, director
of the Government Accountability Office’s Financial
Markets
and
Community
Investment unit, said
during
the
hearing.
Department of J us tice Statement Abo ut Ac tio ns the D epartment is
T aking Agains t S BA Loan Fr aud on March 26, 2 021
These cases involve attempts to obtain over $569 million from the U.S. government
and unsuspecting individuals throu gh fra ud and have b een br oug ht in 56 feder a l
districts around the country.
OIG has increased staffing in both its Auditing and Investigations Divisions with
the supplemental funds appropriated to our office to increase our review and
investigative capacity by approximately 40 percent. The supplemental funds are
available until exhaustion, with some funding being directed for the purpose of EIDL
oversight. These supplemental funds are critical for this initial oversight
S BA Inspector General Hannibal Ware’s testi mony before the S enate
Small Business Committee on March 25, 2021
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PPP Forgiveness Statistics as of 4/1/21
Total 2020 PPP volume 5.2M
Forgiven 2.4M
Under review 290K
Applications not yet received 2.5M
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Total 2020 PPP Volume = $521.2B
$209.1B has been forgiven*
*Many PPP Forgiveness Applications above
$2 million well past 90-day period
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Business Relief Pr ogr ams
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© 2021 Association of International Certified Professional Accountants. All rights reserved.
Key Federal Business Relief Options
• Paycheck Protection Program
• Employee Retention Credit
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• Covid-19 Economic Inj ury Disaster Loan
• Targeted EIDL Advance
• Shuttered V enue Operators Grant
• Restaurant Revitalization Fund
• SBA Debt Relief
Help your clients
navigate the options
• Know the basics
• Identify the relevant
programs for your
clients
• Develop strategy to
build capacity or refer
to your network
• Communicate options
to clients and set
expectations
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