Can I Fax In Loan Forgiveness Forms Great Lakes

Can I Fax In Loan Forgiveness Forms Great Lakes

The U.S. Small Business Administration has released a form of one page that makes it easier to apply for forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that comply with the most recent stimulus law. 

Congress approved the COVID-19 relief plan last month and provided $284 billion of funding for small-scale businesses who needed loans. The money was intended to mitigate the economic effects of the coronavirus outbreak. The package also mandated the SBA to issue simplified forms within 24 days after the legislation was signed into law to simplify the process of applying for forgiveness, along with conditions meant to encourage more loans from community banks, particularly for minority-owned companies that were unable to obtain loans in the past.

Can I Fax In Loan Forgiveness Forms Great Lakes

“The Small Business Administration met the requirement to issue the one-page form for PPP loan forgiveness within 24 days of the date of enactment of 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 issued new forms that were updated.”

Forgiveness terms for the initial draw of PPP loans

Can I Fax In Loan Forgiveness Forms Great Lakes – For borrowers who are eligible, First Draw PPP loans can be qualified for loan forgiveness. This happens if the loan disbursement occurs within an 8 to 24 week period.

  • This is also true for compensation and employees.
  • The loan proceeds can be used to cover payroll costs or other eligible expenses.
  • Minimum 60% of profits go towards expenses for payroll

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans to qualified borrowers are eligible for loan repayment when the loan is paid within an 8– to 24 week time frame.

  • Employee and compensation levels are maintained in the same way as required for the First Draw PPP loan
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • A minimum of 60% of the funds go to payroll costs
  • How to request loan forgiveness and when

After all loan funds have been utilized, a borrower can apply to be forgiven. Borrowers may apply for forgiveness at any point up to the date of maturity. If they do not file for forgiveness within 10 months of the end of the time period that was covered the PPP loan payments can not deferred any longer, and borrowers must make payment to their PPP lender.

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