DSJCPA’s CRT Provides Solutions
- Rubio threatens to subpoena companies to ensure Coronavirus relief funds were used properly
- Nitti (Forbes): “…This Forgiveness Calculation is not going to end well for a lot of businesses”
- DSJCPA’s CRT client list tops 100 as PPP, EIDL, and other relief programs continue
As Congress is poised to replenish the Paycheck Protection Program (PPP) today, prominent Senators and industry experts are already speaking out about the consequences that await business owners who seek to abuse the PPP.
As we wrote last week in our article So You (Almost) Have the Money – Now What?, we are learning that the self-certifications that the banks are requiring business owners to make on these applications are as long, if not longer, than the actual application itself. This has been done to achieve the government’s goal of getting this financial relief to business owners and into the economy as quickly as possible. At the end of the Forgiveness Period, the government will require a Forgiveness Calculation to be prepared by business owners to ensure that the PPP funds were utilized in accordance with the CARES Act guidelines.
On Monday, Senator Marco Rubio, Chairman of the Senate Committee on Small Business and Entrepreneurship, warned of the ramifications for business owners who defraud the banks and SBA on their application in an effort to get relief through the PPP that they are not qualified to receive. In a quote to The Hill, Rubio said, “This fall, the Senate Committee on Small Business and Entrepreneurship will conduct aggressive oversight into the use of the PPP. If companies are not forthcoming, the Committee will use its subpoena power to compel cooperation.” Rubio later doubled down on these comments via Twitter, stating, “The certification language in #PPP is real & enforceable. That is why any company (of any size) that hasn’t been harmed by the current economic conditions & nevertheless applies for & receives #PPP has a big problem.”
DSJCPA has been part of a large group of industry experts warning of the potential large and forceful consequences for business owners that either knowingly or unknowingly mislead the government in their Forgiveness Calculation. Tony Nitti, a Senior Contributor to Forbes, echoed Rubio’s same serious and foreboding tone on Monday, writing “I’m telling you, this forgiveness calculation is not going to end well for a lot of businesses.”
The best way to avoid any mistakes and unintended consequences throughout this process is to have a knowledgeable and trusted business partner by your side each step of the way. Our Coronavirus Response Team (CRT) is available to assist both you and your business in any way possible. To date, we have advised over 100 clients, both current and new, through the process.
Find out more information about our CRT and how our Firm can help you through these difficult times by visiting our DSJCPA COVID-19 Information Center to learn more.