The Maryland Association of CPAs is urging Congress to make additional funding available for the Small Business Administration’s Paycheck Protection Program.
The PPP, which is designed to be an incentive for small businesses to keep their workers on the payroll, officially ran out of money on Thursday. Congress, meanwhile, has been debating the possibility of funneling $250 billion in additional funds into the program.
On Thursday, the MACPA sent letters to Maryland’s entire congressional delegation urging “swift action and approval of additional funding for the Paycheck Protection Program, to aid small businesses and their employees.”
“Since the onset of the COVID-19 worldwide crisis, Maryland CPAs have been on the front line advising distressed small businesses on the available resources and relief programs, while at the same time mastering complex new legislation and readjusting to new tax guidance and deadlines,” the MACPA’s letter reads.
“With reports that the PPP’s funding has run dry, it is clear Congress must take quick and decisive action,” the letter continues. “Supporting and stabilizing small businesses is essential to our nation’s economic recovery. Without additional funding, many private companies will be forced to lay off employees and many face bankruptcy as their options dwindle fast.”
Beyond additional funding, the MACPA joins the American Institute of CPAs in seeking greater flexibility — with some appropriate restrictions on who is allowed to have this flexibility — on the timing of the PPP’s eight-week payroll support cycle. Some business owners have suggested it makes more sense to delay the start of this cycle until restrictions are lifted and businesses can operate again.