Loan Forgiveness Release Form Grant

Loan Forgiveness Release Form Grant

The U.S. Small Business Administration issued a one-page application form aimed at simplifying the application process for forgiveness of Paycheck Protection Program loans, together with 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 funds for small businesses that want forgiven loans to help to deal with the effects of economic collapse from the coronavirus pandemic. The law requires that the SBA release simplified forms within 24 hours of the signing into law. This was done to simplify the process of applying for forgiveness. Additionally, it included conditions to encourage banks in the community to lend more particularly to minority-owned businesses who had a difficult time getting loans last year.

Loan Forgiveness Release Form Grant

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

First Draw PPP Conditions for loan forgiveness

Loan Forgiveness Release Form Grant – First Draw PPP loans granted to borrowers who meet the criteria are eligible for total loan forgiveness within the 8 to 24 week period that follows the loan’s disbursement

  • Employee and compensation levels are maintained
  • The loan funds are used on payroll costs and other expenses that are eligible and
  • A minimum of 60% of proceeds are used for the cost of payroll

Second Draw PPP Terms of Loan Forgiveness

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

  • The levels of compensation and employee pay are maintained in the same manner as required for the First Draw PPP loan
  • The proceeds of the loan can be used to pay for expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of the proceeds go to the cost of payroll
  • How do I request loan forgiveness and when to apply

A borrower may apply for forgiveness only after the loan’s proceeds for which the borrower has applied for forgiveness have been utilized. Borrowers are able to apply for forgiveness at any time prior until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 month of the expiration date of the loan are able to receive the loan payment from their PPP lender.

Download Loan Forgiveness Release Form Grant

Gallery of Loan Forgiveness Release Form Grant


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