A total of $350 billion in forgivable loans are expected to be provided to small businesses who qualify through the federal program, according to Matt Denny of Denny & Company, LLP.
“That is to allow employers to have enough cash at this point for eight weeks worth of payroll,” explained the Santa Clarita CPA during the latest “Common Ground” show on KHTS Radio. “However, I understand that it’s probably going to be lengthened, so there will be additional funding available, hopefully, unless the CARES Act runs out of money.”
There are already some “very, very large” banks that are no longer accepting program applications due to the “flood of requests” that have already been submitted, Denny noted.
In order to apply, the proper forms are required and a number of physical documentation needs to be submitted, Denny continued.
Some of the required documentation includes the most recent tax return for the business, a copy of the driver’s license of the owner and an example that proves the business has payroll, which could be a W3 summarizing wages paid to employees last year or a 940 form from the previous year.
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When specific dollar amounts were mentioned, Denny noted that the situation currently appears to be fluid.
“There’s so many different details that are floating around out there, and the SBA keeps changing things from one minute to the next,” he said.
For example, Denny pointed out that a variety of complex application forms that were on the SBA website a few weeks ago have been taken down.
“The SBA shut everything down on their website and they hired an outside contractor to come in and redo the forms to make them easier, and then sent the PPP loan applications to banks,” Denny said. “So it’s very hard to know where in the process you might be.”
For more information about the Paycheck Protection Program, visit the Small Business Administration’s website by clicking here.
The Santa Clarita CPA firm Denny & Company, LLP was established in 1984, and is a full-service firm of Certified Public Accountants in Santa Clarita, including Partners Matt Denny and Carolyn Denny. The Santa Clarita accountants work with small businesses and individuals, specializing in catering to each client’s unique needs and desires using a flexible approach. As a CPA in Santa Clarita, Matt Denny shares his knowledge and experience regularly on “Common Ground” on KHTS Radio. Those looking for the best CPA in Santa Clarita or a “CPA near me” can contact Denny & Company, LLP for more information today.
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