Loan Forgiveness Form 2017

The U.S. Small Business Administration has released a single-page form designed to make it easier for applicants to complete the application process to forgive Paycheck Protection Program loans, together with updated and revised forms to comply with the latest stimulus legislation. 

The COVID-19 aid package Congress approved last month renewed the PPP with $284 billion of funding for small businesses seeking forgiveness loans to help them deal with the financial fallout from the coronavirus outbreak. The law required that the SBA issue simplified forms within the first 24 hours of the legislation’s signing into law. This was done to make it easier to apply for forgiveness. It also included conditions to encourage community banks to lend more particularly to minority-owned businesses who had a difficult time getting loans in the past.

Loan Forgiveness Form 2017

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and stated that the Small Business Administration fulfilled the requirement to publish the one-page PPP form loan forgiveness within 24 hours of the date of enactment under the Consolidated Appropriations Act, 20,21. This was published on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also issued the updated forms.”

First Draw PPP Conditions for loan forgiveness

Loan Forgiveness Form 2017 – For borrowers who are eligible, First Draw PPP loans can be qualified to be forgiven. This applies when the loan is disbursed within an 8 to 24-week timeframe.

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

Second Draw PPP Conditions for loan forgiveness

Second Draw PPP loans granted to borrowers who meet the criteria are eligible for complete loan forgiveness, if within the 8to 24-week covered period following loan payment:

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an identical manner.
  • The loan funds are used on payroll and other eligible expenses; and
  • A minimum of 60% of the funds go to expenses for payroll
  • What is the best time to apply for loan forgiveness?

The borrower is eligible for forgiveness only after all loan proceeds to which the borrower wants forgiveness have been used. Borrowers may apply for forgiveness at any time up to the loan’s maturity date. Borrowers who don’t request forgiveness within 10 months of the end date of the loan are eligible to receive loan payments from their PPP lender.

Download Loan Forgiveness Form 2017

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