AICPA Calls for Federal Loans Backed by Accounts Receivables

The American Institute of CPAs (AICPA) has identified as for the Treasury Office and the Federal Reserve to create a federally backed shorter-expression accounts receivable lending facility that would let companies to offer with the money stream shortfalls brought on by the coronavirus crisis.

In an open letter to Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell, AICPA stated enterprises ended up dealing with “significant slow-downs” in payments and the “extraordinary” economic problems have produced companies hesitant to get on ordinary threat.

“The AICPA has noticed a continuing need to have for shorter-expression liquidity in the marketplace. In these types of an unexpected downturn, enterprises have had to offer with the challenge of harnessing more than enough money when nonetheless sustaining other forms of shorter-expression assets, these types of as stock, in order to continue on their small business operations,” the letter, from AICPA chief government officer Barry

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