Ppp Loan Forgiveness Ez Form

Ppp Loan Forgiveness Ez Form

The U.S. Small Business Administration has issued a one-page form that makes it easier to apply for the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms that are in line with the most recent stimulus law. 

The COVID-19 relief plan that Congress approved last month renewed the PPP with $284 billion in funds for small businesses that want forgiven loans to help cope with the economic fallout from the coronavirus pandemic. The law required that the SBA provide simplified forms within the first 24 hours after the bill’s passage into law. This is to facilitate the application for forgiveness. Additionally, it included conditions that would encourage community banks to make more loans specifically to minority-owned companies who had a difficult time getting loans last year.

Ppp Loan Forgiveness Ez Form

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

First Draw PPP Conditions for loan forgiveness

Ppp Loan Forgiveness Ez Form – For those who qualify, First Draw PPP loans are eligible to forgive loans. This is when the loan payment is made within an 8 to 24-week period.

  • Employee and compensation levels are maintained
  • The proceeds from the loan may be used to pay for the cost of payroll as well as other expenses that are eligible.
  • At least 60% of the profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans granted to borrowers who are eligible can be granted total loan forgiveness if they do so during the 8to 24 week time period after loan disbursement:

  • Pay and worker levels are maintained in the same way as is required for the First Draw PPP loan
  • The loan proceeds are spent on payroll expenses as well as other eligible expenses and
  • At least 60% of the profits are spent on payroll costs
  • How to apply for loan forgiveness , and when to apply

A borrower can apply for forgiveness once all loan proceeds for which the borrower has applied for forgiveness have been used. The borrower can request forgiveness at any time prior until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 years of the last day of the period covered the PPP loans are not deferred any longer, and the borrower will be required to make loan payments to their PPP lender.

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