Bot Loan Forgiveness Form

Bot Loan Forgiveness Form

The U.S. Small Business Administration has released a 1-page form that makes it easier to apply for the cancellation of Paycheck Protection Program loans. The form is also updated with new forms that comply with the latest stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March and provided $284 billion of funding to small businesses in need of loans. The money was intended to offset the economic impact of the coronavirus pandemic. It included a requirement for the SBA to issue simplified forms within 24 hours of the legislation being adopted to make the application process for forgiveness, along with conditions meant to encourage more loans from community banks, especially for minority-owned companies that were unable to obtain loans last year.

Bot Loan Forgiveness Form

“The Small Business Administration met the requirements to release the one-page form for loan forgiveness under the PPP within 24 hours of the date of enactment the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published more updated forms.”

First Draw PPP Terms of loan forgiveness

Bot Loan Forgiveness Form – First Draw PPP loans given to eligible borrowers qualify for complete loan forgiveness if they do so during the 8- to 24-week covered period following loan disbursement:

  • This is also true for pay and benefits for employees.
  • The loan proceeds are used on payroll costs as well as other expenses eligible for reimbursement; and
  • A minimum of 60% of the profits are spent on payroll costs

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans granted to borrowers who are eligible can be granted full loan forgiveness if during the 8to 24-week duration following the loan’s disbursement

  • Pay and worker levels are maintained in the same way in accordance with the First Draw PPP loan
  • The loan funds could be used to pay for expenses for payroll or other expenses that are eligible.
  • At least 60% of profits are used for the cost of payroll
  • How and when to apply for loan forgiveness

The borrower is eligible for forgiveness after the loan’s proceeds for which the borrower wants forgiveness have been used. The borrower can apply for forgiveness at any point up to the date at which the loan matures. Borrowers who don’t request forgiveness within 10 months after the date they will be able to repay the loan are eligible to receive loan payments from their PPP lender.

Download Bot Loan Forgiveness Form

Gallery of Bot Loan Forgiveness Form


Leave a Reply

Your email address will not be published.