Public Service Loan Forgiveness Pslf Employment Certification Form

Public Service Loan Forgiveness Pslf Employment Certification Form

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. The form is also updated with new forms to comply with the most recent stimulus law. 

Congress approved the COVID-19 relief package last month, which provided $284 billion of funding to small businesses in need of loans. This money was used to offset the economic impact of the coronavirus epidemic. It also included a requirement that the SBA to issue simplified forms within the first 24 hours after the legislation was adopted to make the application process for forgiveness, along with conditions meant to encourage more loans from community banks, particularly for minority-owned businesses who were unable to obtain loans last year.

Public Service Loan Forgiveness Pslf Employment Certification Form

“The Small Business Administration met the requirement of releasing the single-page form for loan forgiveness under the PPP within 24 days of the date of enactment the Consolidated Appropriations Act, 2021,” wrote Ed Zollars who is a partner of Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also released more updated forms.”

Terms for forgiveness for the first draw of PPP loans

Public Service Loan Forgiveness Pslf Employment Certification Form – For those who qualify First Draw PPP loans can be qualified for loan forgiveness. This happens when the loan payment is made within an 8 to 24-week period.

  • This is also true for employee compensation and the.
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • Minimum 60% of proceeds go to expenses for payroll

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans to eligible customers are eligible for loan forgiveness when the loan is repaid within an 8 24 week time frame.

  • Employee and compensation levels are maintained in the same manner as is required for the First Draw PPP loan
  • The loan funds are used on payroll costs and other eligible expenses; and
  • A minimum of 60% of the funds go to expenses for payroll
  • When and how do I apply for loan forgiveness

Once all of the loan funds have been utilized, a borrower can apply for forgiveness. The borrower can request forgiveness any time up to the maturity date of the loan. Borrowers who don’t request forgiveness within 10 months after the date they will be able to repay the loan will be able to receive the loan payment from their PPP lender.

Download Public Service Loan Forgiveness Pslf Employment Certification Form

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