The American Institute of CPAs has issued recommendations aimed at a common understanding of how accountants can serve as agents for purposes of the PPP. Specifically, AICPA recommended that the accountant for a small business applying for a PPP loan “contact the lender prior to offering assistance and performing advisory work to the client. This will ensure the lender has agreed to compensate the CPA firm for its service.”
AICPA also recommended that should the lender agree to pay an agency fee to the CPA firm, as allowed for by the CARES Act, that the relationship be documented and disclosed to the applicant. “Documentation could take the form of a letter, sent by the CPA to his/her client, that describes the services to be performed by the CPA firm to assist and advise the client on the appropriate completion of the application,” AICPA said.
The recommendations come as lenders and CPA firms have sought clarity regarding how agent relationships should be documented and how fees should be paid if agreed to.