Perkins Loan Forgivness Form Re-certify

Perkins Loan Forgivness Form Re-certify

The U.S. Small Business Administration released a one-page form that aims to simplify the application process for the forgiveness of Paycheck Protection Program loans, together with updated and revised forms that meet the requirements of the latest stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March, which offered $284 billion in funding to small businesses in need of loans. This money was used to offset the economic impact of the coronavirus outbreak. The package also mandated the SBA to issue simplified forms within 24 days after the legislation was adopted to make the process of applying for forgiveness. It also included conditions that aim to increase the number of loans from community banks, specifically for minority-owned businesses that struggled to get loans in the past.

Perkins Loan Forgivness Form Re-certify

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, wrote 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 in the Consolidated Appropriations Act, 20,21. This was published on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also issued additional updated forms.”

First Draw PPP Loan forgiveness terms

Perkins Loan Forgivness Form Re-certify – First Draw PPP loans granted to eligible borrowers qualify for full loan forgiveness if within the 8-to 24-week covered period following the loan’s disbursement

  • Employee and compensation levels are kept at a constant level.
  • The proceeds of the loan can be used to pay for payroll costs or other expenses that are eligible.
  • At least 60% of proceeds are spent on payroll costs

Second Draw PPP Conditions for loan forgiveness

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

  • The First Draw PPP loan requires that the employee and compensation levels be maintained in the exact same way.
  • The loan proceeds are used on payroll expenses and other expenses that are eligible and
  • A minimum of 60% of the profits go towards expenses for payroll
  • How do I request loan forgiveness and when

When all of the loan’s proceeds have been used the borrower is eligible to be granted forgiveness. The borrower can apply for forgiveness at any point up to the date of maturity. Borrowers who do not request forgiveness within 10 months of the end date of the loan will be able to receive payment from their PPP lender.

Download Perkins Loan Forgivness Form Re-certify

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