Osap Loan Forgiveness Form

Osap Loan Forgiveness Form

The U.S. Small Business Administration issued a one-page application form designed to make it easier for applicants to complete the application process to forgive Paycheck Protection Program loans, along with newly updated and revised forms to conform to the requirements of the most recent stimulus legislation. 

Congress approved the COVID-19 relief plan last month that offered $284 billion in funding to small businesses that needed loans. The money was intended to reduce the economic burden of the coronavirus epidemic. The legislation required that the SBA release simplified forms within 24 hours of the signing into law. This was done to facilitate the application for forgiveness. Additionally, it 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.

Osap Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, stated that the Small Business Administration fulfilled the requirement to publish the PPP form, which is one page long, for loan forgiveness within 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 released the updated forms.”

Terms for forgiveness for the first draw of PPP loans

Osap Loan Forgiveness Form – For those who qualify, First Draw PPP loans are eligible to be forgiven. This is when the loan is disbursed within an 8 to 24 week period.

  • The same goes for the pay and benefits for employees.
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • A minimum of 60% of the funds go to payroll costs

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans for eligible borrowers can be eligible for loan forgiveness when the loan is repaid within an 8 24-week time frame.

  • Pay and worker levels are maintained in the same manner in accordance with the First Draw PPP loan
  • The loan funds are used on payroll and other eligible expenses; and
  • At least 60% of proceeds go to payroll costs
  • How do I request loan forgiveness and when

A borrower can apply for forgiveness after all loan proceeds to which the borrower has applied for forgiveness have been used. Borrowers are able to apply for forgiveness any time up to the maturity date of the loan. If they do not file for forgiveness within 10 months of the date of expiration of the covered period and the loan is not renewed, PPP loans are no longer deferred, and borrowers must make loan payments to their PPP lender.

Download Osap Loan Forgiveness Form

Gallery of Osap Loan Forgiveness Form


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