Child Care Provider Loan Forgiveness Program Forbearance Form

Child Care Provider Loan Forgiveness Program Forbearance Form

The U.S. Small Business Administration has released a single-page form that aims to simplify the application process to forgive Paycheck Protection Program loans, as well as newly updated and revised forms to meet the requirements of the most recent stimulus legislation. 

The COVID-19 relief package that Congress passed last month revived the PPP with $284 billion of funding for small businesses seeking forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The law required that the SBA release simplified forms within the first 24 hours of the signing into law. This was done to facilitate the application for forgiveness. It also included conditions that would encourage banks in the community to lend more particularly to minority-owned businesses who had a difficult time getting loans last year.

Child Care Provider Loan Forgiveness Program Forbearance Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs stated that the Small Business Administration fulfilled the requirement to issue the PPP form, which is one page long, for loan forgiveness within the first 24 hours from the date of enactment under the Consolidated Appropriations Act, 20,21. The article was posted on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also published more updated forms.”

First Draw PPP Terms of loan forgiveness

Child Care Provider Loan Forgiveness Program Forbearance Form – First Draw PPP loans granted to borrowers who are eligible can be granted total loan forgiveness within the 8-to 24-week covered period following the disbursement of loan:

  • Employee and compensation levels are maintained
  • The loan proceeds can be used to pay for the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness Conditions

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

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an identical manner.
  • The proceeds of the loan can be used to cover the cost of payroll as well as other expenses that are eligible.
  • A minimum of 60% of the funds go to payroll costs
  • How do I request loan forgiveness and when to apply

A borrower may apply for forgiveness only after all loan proceeds for which the borrower is requesting forgiveness have been utilized. Borrowers can apply for forgiveness at any time prior to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 years of the end of the time period that was covered the PPP loans are no longer deferred and borrowers will begin making monthly payments to their PPP lender.

Download Child Care Provider Loan Forgiveness Program Forbearance Form

Gallery of Child Care Provider Loan Forgiveness Program Forbearance Form


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