Public Loan Forgiveness Program Form

Public Loan Forgiveness Program Form

The U.S. Small Business Administration released a one-page form designed to make it easier for applicants to complete the application process to forgive Paycheck Protection Program loans, together with updated and revised forms that conform to the requirements of the latest stimulus legislation. 

The COVID-19 aid package Congress approved last month renewed the PPP with $284 billion of financing for small-scale businesses looking for forgivable loans to help them cope with the economic fallout from the coronavirus outbreak. The legislation required that the SBA issue simplified forms within the first 24 hours of the legislation’s signing into law. This is to make it easier to apply for forgiveness. The legislation also contained conditions that encourage community banks to make more loans particularly to minority-owned businesses that had difficulty getting loans last year.

Public Loan Forgiveness Program Form

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

First Draw PPP Loan forgiveness terms

Public Loan Forgiveness Program Form – First Draw PPP loans given to eligible borrowers qualify for total loan forgiveness within the 8 to 24-week period after loan disbursement:

  • The same goes for the compensation and employees.
  • The loan proceeds are used on payroll expenses and other expenses that are eligible and
  • At least 60% of the profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness The 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:

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an exact same way.
  • The loan proceeds are spent on payroll as well as other eligible expenses and
  • Minimum 60% of proceeds go to the cost of payroll
  • How and when to apply for loan forgiveness

When all of the loan proceeds have been used, a borrower can apply for forgiveness. Borrowers can apply for forgiveness any time up until the date of maturity of the loan. If they do not file for forgiveness within 10 months after the end of the covered period, then PPP loans are no longer deferred, and borrowers will begin making monthly payments to their PPP lender.

Download Public Loan Forgiveness Program Form

Gallery of Public Loan Forgiveness Program Form


Leave a Reply

Your email address will not be published.