Public Loan Forgiveness Application Form

Public Loan Forgiveness Application Form

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

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion of funds for small businesses that want forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The law required that the SBA release simplified forms within 24 hours after the bill’s passage into law. This was done to facilitate the application for forgiveness. It also included conditions that encourage community banks to make more loans, especially to minority-owned businesses who were unable to obtain loans last year.

Public Loan Forgiveness Application Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and said that the Small Business Administration fulfilled the obligation to issue the one-page PPP form loan forgiveness within 24 hours from 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 new forms.”

First Draw PPP Loan forgiveness terms

Public Loan Forgiveness Application Form – For eligible borrowers, First Draw PPP loans can be eligible for loan forgiveness. This applies when the loan payment is made within an 8 to 24-week timeframe.

  • Pay and worker levels are maintained
  • The loan proceeds can be used to pay for the cost of payroll as well as other eligible expenses.
  • At least 60% of funds go to payroll costs

Second Draw PPP Loan Forgiveness Terms

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 time period after loan disbursement:

  • Employee and compensation levels are maintained in the same manner as is required for the First Draw PPP loan
  • The loan funds could be used to cover the cost of payroll as well as other expenses that are eligible.
  • A minimum of 60% of profits are used to pay for payroll expenses
  • How do I request loan forgiveness and when to apply

The borrower is eligible for forgiveness once all loan proceeds for which the borrower has applied for forgiveness have been used. The borrower can apply for forgiveness at any time 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 Public Loan Forgiveness Application Form

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