Public Health Loan Forgiveness Form

The U.S. Small Business Administration has issued a one-page form that simplifies the application for forgiveness of Paycheck Protection Program loans. The form also contains newly updated forms to comply with the most recent stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March and offered $284 billion in funding to small businesses in need of loans. This money was used to mitigate the economic effects of the coronavirus outbreak. The law required that the SBA provide simplified forms within the first 24 hours of the legislation’s signing into law. This is to simplify the process of applying for forgiveness. The legislation also contained conditions to encourage community banks to lend more, especially to minority-owned businesses who had a difficult time getting loans last year.

Public Health Loan Forgiveness Form

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

First Draw PPP Loan forgiveness terms

Public Health Loan Forgiveness Form – For borrowers who are eligible, First Draw PPP loans are eligible for loan forgiveness. This applies if the loan disbursement occurs within an 8 to 24-week timeframe.

  • It’s the same for compensation and employees.
  • The loan proceeds are used on payroll costs as well as other expenses eligible for reimbursement; and
  • At least 60% of the proceeds are used for the cost of payroll

Second Draw PPP Conditions for loan forgiveness

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

  • The First Draw PPP loan requires that the employee and compensation levels are maintained in the exact same way.
  • The loan proceeds could be used to cover expenses for payroll or other eligible expenses.
  • At least 60% of proceeds are spent on payroll costs
  • How do I apply for loan forgiveness , and when to apply

The borrower is eligible for forgiveness once the loan’s proceeds for which the borrower has applied for forgiveness have been utilized. Borrowers can request forgiveness at any time up to the loan’s maturity date. If borrowers do not apply for forgiveness within 10 months after the last day of the time period that was covered, then PPP loan payments are no longer deferred and the borrower will be required to make loan payments to their PPP lender.

Download Public Health Loan Forgiveness Form

Gallery of Public Health Loan Forgiveness Form

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