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AICPA Asks Lawmakers for PPP Application Deadline Extension

Posted on Mar. 3, 2021

The American Institute of CPAs wants Congress to extend the Paycheck Protection Program loan application deadline in a stand-alone bipartisan bill.

AICPA President Barry Melancon said in a March 2 statement that many small businesses in minority communities continue to face challenges with the loan application process. “The accounting profession believes that Congressional action now to extend the looming deadline will help ease Main Street America’s anxiety and frustration,” he said.

As the March 31 application deadline approaches, the AICPA said that in addition to taxpayer confusion, there are problems with error codes when applications are submitted to the Small Business Administration.

The small business loan program created by the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136) is popular among lawmakers and has bipartisan support. The newest stimulus package crafted by Democrats wouldn't extend the PPP, but lawmakers have previously come together to approve fixes to the program.

The House and the Senate fast-tracked a bipartisan bill — the Paycheck Protection Program Flexibility Act of 2020 (P.L. 116-142) — in June 2020 to amend the program and increase the loan forgiveness period from eight weeks to 24 weeks.

A 60-day extension of the March 31 deadline would provide more time for small businesses to understand the new guidelines and for the SBA to fix problems with its system, the AICPA said.

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