My Fed Loan Public Loan Forgiveness Form

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, as well as newly updated and revised forms that meet the requirements of the most recent stimulus legislation. 

The COVID-19 aid package Congress adopted last month revived the PPP with $284 billion in funding for small businesses seeking forgiveness loans to help them cope with the economic fallout of the coronavirus epidemic. It included a requirement for the SBA to issue simplified forms within the first 24 hours of the legislation being approved by the lawmaker to streamline the procedure of applying for forgiveness, along with conditions that aim to increase the number of loans from community banks, specifically for minority-owned businesses who had trouble getting loans last year.

My Fed Loan Public Loan Forgiveness Form

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

First Draw PPP Loan forgiveness terms

My Fed Loan Public Loan Forgiveness Form – First Draw PPP loans given to eligible borrowers qualify for complete loan forgiveness if they do so within the 8 to 24 week period that follows the loan’s disbursement

  • The same goes for the compensation and employees.
  • The proceeds from the loan may be used to cover the cost of payroll as well as other eligible expenses.
  • At least 60% of funds go to payroll costs

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans to qualified borrowers can be qualified for loan forgiveness when the loan is paid within an 8to 24 week period.

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

The borrower is eligible for forgiveness once the loan’s proceeds for which the borrower wants forgiveness have been utilized. Borrowers may apply for forgiveness at any point up to the loan’s maturity date. Borrowers who don’t request forgiveness within 10 month of the expiration date of the loan are eligible to receive the loan payment from their PPP lender.

Download My Fed Loan Public Loan Forgiveness Form

Gallery of My Fed Loan Public Loan Forgiveness Form

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