Public Loan Forgiveness Form 2022

The U.S. Small Business Administration has released a form of one page that makes it easier to apply for forgiveness of Paycheck Protection Program loans. It also includes newly revised forms to comply with the current stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March that offered $284 billion in funding to small businesses that needed loans. The money was intended to offset the economic impact of the coronavirus outbreak. The legislation required that the SBA issue simplified forms within 24 hours of the signing into law. This was to simplify the process of applying for forgiveness. The legislation also contained conditions that encourage community banks to lend more particularly to minority-owned businesses who had a difficult time getting loans last year.

Public Loan Forgiveness Form 2022

“The Small Business Administration met the requirement of releasing the one page form for the forgiveness of PPP loans within 24 hours of the date of enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also released new forms that were updated.”

First Draw PPP Conditions for loan forgiveness

Public Loan Forgiveness Form 2022 – First Draw PPP loans made to borrowers who are eligible can be granted complete loan forgiveness if they do so within the 8-to 24-week period after loan disbursement:

  • The same goes for the pay and benefits for employees.
  • The loan funds are used on payroll costs as well as other expenses eligible for reimbursement; and
  • Minimum 60% of funds go to the cost of payroll

Second Draw PPP Terms of Loan Forgiveness

Second Draw PPP loans to qualified borrowers are eligible for loan forgiveness if the loan is paid within an 8to 24-week period.

  • The First Draw PPP loan requires that the employee and the compensation levels are maintained in the exactly the same manner.
  • The loan proceeds can be used to pay for the cost of payroll as well as other eligible expenses.
  • At least 60% of the proceeds are used to pay for payroll expenses
  • What is the best time to apply for loan forgiveness

After all loan’s proceeds have been used, a borrower can apply to be granted forgiveness. The borrower can request forgiveness any time up until the date of maturity of the loan. Borrowers who do not request forgiveness within 10 month after the date they will be able to repay the loan are eligible to receive the loan payment from their PPP lender.

Download Public Loan Forgiveness Form 2022

Gallery of Public Loan Forgiveness Form 2022

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