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SBA Disaster Loan Funds Exhausted

UPDATED: On April 21st a new round of funding became available for the PPP loan program. The EIDL program is also still accepting applications. The deadline to apply for the PPP remains June 30th.

As you may now be aware, the US Small Business Administration (SBA) announced today, April 16th, that Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Funds have been depleted and applications are on hold.

Congress is in the process of negotiating a new relief measure that may include a pool of additional funds for these programs. AAFCPAs will keep you informed as details emerge.

What now?

For businesses who missed out on this first round of appropriations funding, AAFCPAs advises clients to contact your bank to inquire as to the status of any pending loans, additional loan options, or if applications may be submitted and held for a potential subsequent round of funding. Additionally, there are other relief options to consider under the CARES Act. Please contact your AAFCPAs Partner to discuss these options as they relate to your specific facts and circumstances.

For businesses who successfully applied and received funding through the SBA’s disaster loans program, AAFCPAs is available for guidance on calculating debt forgiveness and tracking your qualified expenditures in accordance with loan terms and conditions.

CYBER SECURITY ALERT: Hackers Use SBA Loan Application as Bait

AAFCPAs has received reports that businesses have been targeted by cyber criminals masquerading as banks, sending well-disguised, socially engineered emails that say, “Additional information needed for your Paycheck Protection Program application.” The campaign includes well-designed web pages that request your banking login credentials. Clients are urged to remain vigilant, as the coronavirus pandemic continues to provide an occasion for criminal hacking. Contact your bank representative directly if you receive an odd request for further information.

If you have any questions or need assistance, please contact Brittany Besler, MBA, CPA, Esq. at 774.512.9001, bbesler@nullaafcpa.com; Courtney McFarland, CPA, MSA at 774.512.4051, cmcfarland@nullaafcpa.com; or your AAFCPAs Partner.

About the Authors

Courtney McFarland
Courtney is an audit partner in the firm’s Healthcare Practice with over 15 years of assurance experience and a comprehensive understanding of the nuances of the healthcare industry. She delivers a full range of solutions solving the challenges that AAFCPAs’ healthcare clients face, including: audits in accordance with Uniform Guidance/Single Audit and Government Auditing Standards, 340B pharmacy program requirements, best practices for reconciliation & analysis of statistical and programmatic data, tracking and monitoring risk-based contracts, maximizing reimbursements, and guidance on healthcare reform. Courtney is a member of AAFCPAs’ Revenue Recognition Task Force, dedicated to helping the firm and clients understand best practices for an efficient and effective implementation of the robust new framework.
Brittany Besler
Brittany possesses a unique combination of tax, legal, and business backgrounds, and is a valuable member of AAFCPAs’ Tax practice. She provides tax planning, research, and compliance solutions for corporations, partnerships, nonprofits, individuals, estates & trusts. Brittany advises businesses and individuals on various federal, state, local and foreign tax-related issues, including counseling clients on the consequences of new and updated tax laws. She assists clients in the creation of appropriate and optimal organizational structures, and advises on tax planning and tax exemption compliance. She advises newly-formed and well-established nonprofit clients on meeting compliance requirements of various government agencies, including the IRS rules on fundraising and political activities.