Analyse the issues or problems using management accounting techniques and tools, and formulate recommended solutions.

Assume you work as a graduate for a large consulting firm. As part of your professional development, you have been asked to identify management accounting problems regarding a specific organization, which require a solution.

Analyse the issues raised by the article chosen and make a memorandum addressed to the board of directors of the organisation chosen. Your analysis should include:

1) Consideration of the management accounting issues raised by the article, including any potential strengths / opportunities as well as any weaknesses / threats identified.

2) Consideration of management accounting techniques or tools which lead to solutions / courses of action / lessons learned that you would offer to the board of directors as to how the issues identified can be tackled or how the organisation concerned can improve its performance.

3) Any other relevant matter that you believe will be of use to the board of directors.

4).Provide Reference.

SBA raises COVID-19 EIDL loan limit to $500,000

The U.S. Small Business Administration is more than tripling the maximum amount that small businesses and nonprofits can borrow under the COVID-19 Economic Injury Disaster Loans (EIDL) program.

Starting the week of April 6, the loan limit for COVID-19 EIDL loans will jump from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000.

"More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA's Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses," said SBA Administrator Isabella Casillas Guzman in a news release. "However, the pandemic has lasted longer than expected, and they need larger loans."

Any COVID-19 EIDL loans in process when the new loan limits go into effect will automatically be considered for the new maximum limits, the SBA said. Existing COVID-19 EIDL borrowers will be able to request an increase beginning April 6. A spokesperson said the SBA will provide updated instructions on how to request a loan increase on SBA.gov and also will reach out directly via email to existing COVID-19 borrowers with loans approved prior to the increased loan limit taking effect.

The SBA has approved more than $200 billion in COVID-19 EIDL loans. The loans have a 30-year maturity with interest rates of 3.75% for small businesses, including sole proprietors and independent contractors, and 2.75% for not-for-profits.

The announcement of the higher loan limits came less than two weeks after the SBA announced March 12 that it was extending deferment periods for all its disaster loans, including the COVID-19 EIDL loans. Thanks to that decision, COVID-19 EIDL recipients won't have to start making payments on their loans until 2022, though borrowers may voluntarily continue to make payments during the deferment as interest will continue to accrue on the outstanding loan balance.

AICPA experts discuss the latest on the PPP and other small business aid programs during a virtual town hall held every other week. The webcasts, which provide CPE credit, are free to AICPA members and $39 for nonmembers. Go to the AICPA Town Hall Series webpage for more information and to register. Recordings of Town Halls are available to view for free on AICPA TV.

The AICPA's Paycheck Protection Program Resources page houses resources and tools produced by the AICPA to help address the economic impact of the coronavirus.

Accounting firms can process applications for the PPP on the CPA Business Funding Portal, created by the AICPA, CPA.com, and fintech partner Biz2Credit.

For more news and reporting on the coronavirus and how CPAs can handle challenges related to the outbreak, visit the JofA's coronavirus resources page or subscribe to our email alerts for breaking PPP news.

Jeff Drew (..w@aicpa-cima.com) is a JofA senior editor.