Edition #16
April 16, 2020
HSC COVID-19 Fast Response Team
We are here to help!

In these uncertain times with multimedia channels reporting conflicting and sometimes incorrect information, our firm is working to add clarity to this situation by providing new and verified information as it becomes available to us. We have also set up a Coronavirus Resource Center on our website for ongoing information. 

In addition, we have created the HSC COVID-19 Fast Response Team to serve our clients in addressing the difficult decisions they are being faced with on a daily basis. This dedicated multi-disciplinary team consists of our tax, payroll, HR, capital markets and accounting professionals. 

If you have questions or would like to speak with this team please contact your HSC team member or Kyle Wininger, CPA, CICA, CVA, CFE at kwininger@hsccpa.com
SBA Stops Accepting PPP Loan Applications - Funding Runs Out

The U.S. Small Business Administration stopped accepting applications for the Paycheck Protection Program after exhausting the initial $349 billion in funding provided by Congress to fund forgivable loans to small businesses impacted by the COVID-19 pandemic.

The SBA, which is administrating the program with Treasury,  posted a statement on its website saying that it is currently unable to accept new PPP applications based on available appropriations funding. The SBA also said it is unable to enroll new PPP lenders at this time.

The AICPA issued a  news release urging Congress to swiftly approve additional funding for the program.

"The need for quick and decisive action by Congress is clear," the AICPA release says. "Small businesses are the nation's economic engine, and supporting and stabilizing them is essential to our economic recovery."

The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, established the PPP to provide up to $349 billion in forgivable loans that businesses with 500 or fewer employees could use to cover payroll, mortgage interest, rent, and utilities. Congress authorized the Treasury and the SBA to spearhead the PPP process as an extension of the SBA's 7(a) loan program.

Small businesses have flooded SBA-approved lenders with PPP requests since the application window opened April 3. Lenders and the SBA have struggled to keep up with the demand as small businesses seek desperately needed help in an economy stymied by restrictions imposed to slow the spread of the novel coronavirus that caused COVID-19.

"This program was rolled out with remarkable speed, and while there have been some bumps along the way, small businesses view the Paycheck Protection Program as a critical lifeline," said AICPA President and CEO Barry Melancon, CPA, CGMA, in the Institute's news release. "We need to extend that support so we can protect workers and ensure our economy can rebound quickly once restrictions are lifted."

The SBA has approved more than 1.6 million loans submitted by nearly 5,000 lenders. That has accounted for more than 14 years' worth of loans in less than 14 days, according to a joint statement  issued Wednesday night by Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza. Mnuchin and Carranza also urged Congress to approve $250 billion in additional funding.

"We urge Congress to appropriate additional funds for the Paycheck Protection Program - a critical and overwhelmingly bipartisan program - at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks," the joint statement said.

The U.S. economy has lost 22 million jobs over the past four weeks, according to unemployment benefits claim data released Thursday by the U.S. Department of Labor.

Originally published by Jeff Drew, Senior Editor, JofA on April 16, 2020.

Please contact Scott Touro, MBA at stouro@hsccpa.com for more information.
CARES Act Provider Relief Fund 
Regulatory Alert: HHS CARES Act Grant Funding Attestation Portal Now Open
The  Portal  for  attestation of receipt and acceptance of the Provider Relief funds authorized under the CARES act  is now open. Providers that received a payment from HHS as part of the Provider Relief Fund authorized under the CARES Act must sign an attestation confirming receipt of the funds and agreeing to the terms and conditions within 30 days of receiving payment.
HHS has set up the web page portal which can be found  by clicking this link .

To complete the attestation, providers and medical practices must provide their Taxpayer Identification Number (Either EIN or SSN) that is attached to the enrolled providers for whom the attestation is being sought. The provider will be asked to verify the amount received as part of this process prior to signing the attestation. 
Should you choose to reject the funds, you must also complete the attestation to indicate this choice. The Portal will guide you through the attestation process to accept or reject the funds.
It is advised that providers fully understand the terms and conditions of the funding before signing the attestation.
Since the release of the first phase of money from the Provider Relief Fund last Friday (4/10) many providers have been raising questions about these funds. CMS staff have informed us that they are creating a FAQ page for the Provider Relief fund which they will be posting soon. The FAQs should  respond to the questions that have been raised such as:
  • What should a provider do if he/she feels the amount of money they've received is incorrect - too high or too low?
  • What should a provide do if he/she did not receive a payment but believes they are entitled to a payment? CMS said they intend to have more information about the Provide Relief Program posted this week on the Provider Relief web page.
CMS has also established the Provider Relief Payment Hotline for providers with questions to call. The hotline number is (866) 569-3522
More to come as information becomes available.

Please contact Brenda Wallace, CPA, CMPE at  bwallace@hsccpa.com for more information.
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