Perkins Loan Forgiveness Application Form

Perkins Loan Forgiveness Application Form

The U.S. Small Business Administration has issued a one-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. It also includes newly revised forms that are in line with the current 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 forgivable loans to help them cope with the economic fallout from the coronavirus outbreak. The package also mandated the SBA to issue streamlined forms within 24 days after the legislation was adopted to make the application process for forgiveness. It also included conditions designed to facilitate more bank loans by community banks, specifically for minority-owned companies that were unable to obtain loans last year.

Perkins Loan Forgiveness Application Form

“The Small Business Administration met the requirements to release the single-page form for loan forgiveness under the PPP by 24 days after the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published additional updated forms.”

Forgiveness terms in the initial draw of PPP loans

Perkins Loan Forgiveness Application Form – For borrowers who are eligible First Draw PPP loans can be eligible to forgive loans. This happens when the loan is disbursed within an 8 to 24-week timeframe.

  • This is also true for compensation and employees.
  • The proceeds from the loan may be used to cover expenses for payroll or other eligible expenses.
  • Minimum 60% of profits go towards payroll costs

Second Draw PPP Terms of Loan Forgiveness

Second Draw PPP loans for eligible customers are qualified for loan forgiveness when the loan is paid within an 8to 24 week time frame.

  • Employee and compensation levels are kept in the same way as required for the First Draw PPP loan
  • The loan proceeds could be used to pay expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of proceeds are spent on payroll costs
  • When and how do I apply for loan forgiveness

Once all of the loan proceeds have been used the borrower is eligible for forgiveness. Borrowers can apply for forgiveness any time up until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 months of the date of expiration of the covered period, then PPP loans are no longer deferred and borrowers will begin making payment to their PPP lender.

Download Perkins Loan Forgiveness Application Form

Gallery of Perkins Loan Forgiveness Application Form


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