The National Conference of CPA Practitioners is calling on the Treasury and the Small Business Administration to operate the CARES Act the way it was intended, and that is to help more small businesses and independent contractors.
In an open letter to Mnuchin and Carranza, NCCPAP President Neil H. Fishman, CPA, CFE, FCPA, CAMS and Co-chairs of the NCCPAP Tax Policy Committee, Stephen F. Mankowski, CPA, CGMA and Sanford E. Zinman, CPA wrote, “The CARES Act created a ‘working capital advance’ within the Economic Injury Disaster Loans (EIDL) program at the SBA intended to help small businesses by awarding grants of up to $10,000 per business.
“This loan advance did not have to be repaid even if the application was denied and the advance was supposed to be made within 3 days. At the time it became law, there were no restrictions. NOWHERE is there indication as to how the amount is to be determined.
“With your announcement, the determining factor for the amount to be issued will be based on the number of employees. Therefore, you have, in effect: eliminated ALL Independent Contractors with no employees, and eliminated any other business entity that does not have employees.”