CPA_Practice_Advisor_June_2020 - 31

AICPA NEWS
Proposal Says Federal
Reserve Should Create
Short-Term AR Lending
to Aid Small Business
The AICPA has called for the Federal Reserve to create a federally backed, short-term accounts receivable lending facility
that would allow companies to pledge future receivables and,
in return, receive immediate cash flow. AICPA's proposal would
work as follows:
■ The Board of Governors of the Federal Reserve System would
authorize the establishment and operation of a short-term
accounts receivable lending facility under section 13(3) of the
Federal Reserve Act (12 U.S.C. § 343(3)).
■ The Federal Reserve would commit to lend to a Special
Purpose Vehicle (SPV) on a recourse basis. The Department
of Treasury would then make an equity investment into the
designated SPV by utilizing funds from Section 4003(b)(4) of the
CARES Act.
■ Businesses pledge their receivables, such as any relevant
contracts, purchase orders, and confirmations from the
secondary parties.
■ Upon approval, the Federal Reserve would provide a reasonable discount rate of the receivable/invoiced amount with no
repayment due for six months. A monthly repayment plan
would exist during months 7-12 from that point forward.
■ Additional loans to individual businesses for future receivables
would be allowed, with the entire facility remaining open for
one year to include receivable payments. ■

APPLICATIONS BEING ACCEPTED TO
TURN CPAs INTO PROFESSORS

The AICPA is seeking applicants for its expanded Accounting
Doctoral Scholars program, which identifies currently practicing
CPAs interested in becoming accounting professors.
Applications are being accepted through September 11, 2020.
This year, the program will host a free virtual GMAT bootcamp
for the first 60 candidates who RSVP. Ultimately, up to 20 individuals will be selected to receive a $5,000 stipend to support their
education, should they be accepted into one of more than 40
affiliated PhD programs.
The program is intended to help grow the number of CPAs
in the classroom and ensure a steady supply of accounting
professors.
CPAs interested in transitioning into an academic career can
learn more about the program at www.adsphd.org.

MOST AMERICANS EXPECT A
NATURAL DISASTER, BUT FEW ARE
FINANCIALLY PREPARED
With the focus on the COVID-19 pandemic, the coming hurricane and wildfire
season is likely not on many Americans'
radars right now. However, it's more
important than ever to be prepared for
a natural disaster.
Currently, six in ten Americans (61
percent) believe they are likely to be
impacted by a natural disaster in the next
three to five years, including one in five
(19 percent) saying they are very likely to
be personally impacted according to an
AICPA survey of 2,050 U.S. adults.
The good news is nearly threequarters of Americans (73 percent) have
taken at least one step to prepare for a

natural disaster, assembling a disaster
supplies kit (34 percent), creating an
evacuation plan (32 percent), or backing up and storing personal medical
and financial records in a safe place (31
percent). The bad news is only 15 percent
have created a disaster plan to protect
their finances. Of note: A little more than
a quarter of Americans (27 percent) have
not taken any steps at all to prepare for
a natural disaster.
For Americans looking for help getting started on their own disaster plan
today, visit www.360FinancialLiteracy.
org/BePrepared.

AICPA Urges SMBs to Apply for Revamped PPP
Congress recently passed the Paycheck Protection Program Flexibility Act, which
allows forgiveness for expenses for up to 24 weeks; extends the timeframe to restore
employee levels to Dec. 31, 2020; increases limitation on nonpayroll expenses; allows
new borrowers five years to repay PPP loans instead of two; and ensures full access
to payroll tax deferment.
The AICPA has created a loan forgiveness calculator (https://tinyurl.com/yapllgq9) to
provide small businesses with a commonly accepted approach to PPP loan forgiveness.
The calculator was made in consultation with the AICPA-led small business funding
coalition whose members provide services and support to businesses that employ
more than 75 million people.
More information on the PPP is available at: www.aicpa.org/SBA.

JUNE 2020 ■

www.CPAPracticeAdvisor.com

http://www.360FinancialLiteracy.org/BePrepared https://www.tinyurl.com/yapllgq9 http://www.adsphd.org http://www.aicpa.org/SBA http://www.CPAPracticeAdvisor.com

CPA_Practice_Advisor_June_2020

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