Ppp Loan Forgiveness Form

The U.S. Small Business Administration has released a form of one page which makes it simpler to request the cancellation of Paycheck Protection Program loans. It also includes newly revised forms to comply with the most recent stimulus legislation. 

The COVID-19 aid package Congress adopted last month revived the PPP with $284 billion in funds for small businesses that want forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The law requires that the SBA issue simplified forms within 24 hours after the bill’s passage into law. This was done to make it easier to apply for forgiveness. Additionally, it included conditions that encourage banks in the community to lend more specifically to minority-owned companies who were unable to obtain loans last year.

Ppp Loan Forgiveness Form

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

First Draw PPP Conditions for loan forgiveness

Ppp Loan Forgiveness Form – First Draw PPP loans given to borrowers who are eligible can be granted complete loan forgiveness if they do so within the 8-to 24-week period after the loan’s disbursement

  • The levels of compensation and employee pay are ensured
  • The loan funds are used on payroll as well as other expenses eligible for reimbursement; and
  • Minimum 60% of funds go to payroll costs

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans given to borrowers who are eligible can be granted complete loan forgiveness, if within the 8– to 24-week covered period following the loan’s disbursement

  • The levels of compensation and employee pay are maintained in the same way as required for the First Draw PPP loan
  • The proceeds of the loan could be used to pay payroll costs or other eligible expenses.
  • A minimum of 60% of the profits go towards the cost of payroll
  • When and how do I apply for loan forgiveness

A borrower can apply for forgiveness only after the loan’s proceeds for which the borrower is requesting forgiveness have been utilized. Borrowers can request forgiveness at any time up to the date at which the loan matures. If the borrower does not apply for forgiveness within 10 months after the last day of the covered period the PPP loans are not deferred any longer, and borrowers will begin making payment to their PPP lender.

Download Ppp Loan Forgiveness Form

Gallery of Ppp Loan Forgiveness Form

Leave a Comment