Matt Denny, a Santa Clarita CPA, explains how recent changes made to the government’s “Paycheck Protection Program” (PPP) loans will affect Santa Clarita businesses.

In a recent episode of the “Common Ground” radio show, Santa Clarita CPA Matt Denny of Denny & Company explained the recent changes to the government’s “Paycheck Protection Program” (PPP) loans. Further, he touched on where businesses can apply for these loans, the stipulations for having them forgiven and when more information on the forgiveness process will be made available.

The stated goal of PPP loans is to help small businesses stay afloat during the economic turmoil caused by the coronavirus pandemic. These loans have stipulations on how businesses can spend funds if they want the loans to be forgiven at the end of their term.

Related: Santa Clarita CPA Explains PPP Loans, Unemployment Insurance On KHTS Radio Show

Denny explained that originally, the loans were designed to support businesses for a period of eight weeks, during which 75 percent of the funds must be spent towards payroll. The Santa Clarita CPA clarified that this included “hiring back people that might have been furloughed” in addition to paying remaining staff members. The other 25 percent must be spent on “utilities, mortgage interest, or rent for the business.”

New changes have allowed businesses to instead apply for PPP loans designed to cover business costs over the course of a 24 week period. Instead of requiring businesses to spend 75 percent of funds on payroll related expenses, these new PPP loans lower that requirement to 60 percent. Similarly, instead of 25 percent earmarked for utilities, mortgage interest or rent, businesses are expected to use 40 percent of PPP funds for these purposes.

“We had a number of clients who received substantial amounts of PPP money who were not going to be able to spend 75 percent of it on payroll in time because they’d let people go,” Denny explained. “There were some employees that are getting a better deal unemployed because of how generous (unemployment benefits are) this time around.”

Denny went on to say that this update to PPP loans “was really called for” and that it will “help a lot of folks be able to get their loans forgiven.”

In terms of the application process, The Santa Clarita CPA explained that businesses seeking PPP loans should contact their bank, as these loans will be offered through banks directly. Furthermore, those who apply for these loans will need to apply for loan forgiveness through the banks within ten months.

Denny said that the exact details of the forgiveness process are not yet known.

“I don’t know that anyone’s released any forms on how (the loan forgiveness process is) going to happen,” he explained. “I think they think with ten months to go, they’ll probably come out with it eight months from now.”

The Santa Clarita CPA said that he’s been able to help many of his clients through the PPP application process, noting that “it’s been a bit of a side track from (Denny & Company’s) normal tax business, but thankfully the government had foresight … and extended the deadline so tax returns aren’t due until July 15th.”

Those seeking guidance to apply for PPP loans, or who need help finishing their tax returns by the July 15 deadline can contact Denny & Company through their website or by calling (661) 286-8860.

Ed. Note: This article is a KHTS Community Spotlight based on a recent radio interview with Denny & Company, LLP.

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.

Denny & Company, LLP

23929 Valencia Blvd. Suite 304
Valencia, CA 91355

(661) 286-8860

Denny & Company, LLP – Valencia

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