Public Service Loan Forgiveness Certifiation Form

Public Service Loan Forgiveness Certifiation Form

The U.S. Small Business Administration has released a single-page form aimed at simplifying the application process for the forgiveness of Paycheck Protection Program loans, as well as newly updated and revised forms that comply with the most recent stimulus legislation. 

The COVID-19 relief package that Congress approved last month renewed the PPP with $284 billion of funds for small businesses that want forgiven loans to help deal with the financial fallout from the coronavirus pandemic. The law requires that the SBA release simplified forms within the first 24 hours of the signing into law. This was to make it easier to apply 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 in the past.

Public Service Loan Forgiveness Certifiation Form

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

Terms for forgiveness for the first draw of PPP loans

Public Service Loan Forgiveness Certifiation Form – First Draw PPP loans made to eligible borrowers qualify for complete loan forgiveness if they do so within the 8-to 24-week period after the disbursement of loan:

  • It’s the same for employee compensation and the.
  • The loan proceeds are spent on payroll as well as other expenses eligible for reimbursement; and
  • A minimum of 60% of the profits are spent on payroll costs

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans made to borrowers who meet the criteria are eligible for complete loan forgiveness, if within the 8– to 24-week time period after the loan’s disbursement

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in the exactly the same manner.
  • The loan proceeds are used on payroll as well as other eligible expenses and
  • At least 60% of proceeds go to payroll costs
  • How do I request loan forgiveness and when

After all loan proceeds have been used The borrower may apply to be granted forgiveness. Borrowers may apply for forgiveness at any time until the date of maturity. If borrowers do not apply for forgiveness within 10 months after the date they will be able to repay the loan are eligible to receive the loan payment from their PPP lender.

Download Public Service Loan Forgiveness Certifiation Form

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