The American Institute of CPAs (AICPA) has sent a letter to the Small Business Administration (SBA) raising concerns about the challenges small businesses are facing with the current Paycheck Protection Program (PPP) loan application system.
The AICPA letter which has outlined problems for small businesses, and the CPAs who advise them, includes the challenges with Draw One & Draw Two applications being denied acceptance into the E-Tran system.
AICPA’s letter also cites confusion over the more than 40 different “error codes” related to SBA E-Tran system validation checks.
The institute has requested that the SBA “provide further clarity and, even more importantly, communicate publicly that nearly one third of all applications are receiving these requests for further review which could delay processing by a week or more.”
Barry Melancon, president and CEO for CPA, CGMA, AICPA, said: “PPP loans have proven to be a critical lifeline for the millions of small businesses and not-for-profits that struggle to stay open and retain employees.
“As close advisers to these organizations, the CPA community has a unique view into problems with the current PPP application system. We appreciate the SBA’s continued efforts to restore Main Street America’s economies.”
He added: “However, there are significant operational, system and communication challenges that must be quickly addressed for PPP to succeed as intended.”