The U.S. Small Business Administration has released a single-page form that aims to simplify the process of applying for forgiveness of Paycheck Protection Program loans, together with revised and updated forms to comply with the latest stimulus legislation.
The COVID-19 aid package Congress approved last month renewed the PPP with $284 billion in financing for small-scale businesses looking for forgiven loans to help deal with the financial fallout from the coronavirus pandemic. The package also mandated the SBA to issue streamlined forms within 24 days of the legislation being signed into law to simplify the process of applying for forgiveness. It also included conditions meant to encourage more bank loans by community banks, particularly for minority-owned businesses that struggled to get loans in the past.
Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, said that the Small Business Administration fulfilled the requirement to issue the PPP form, which is one page long, for loan forgiveness within 24 days from the date of enactment in 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 that were updated.”
First Draw PPP Loan forgiveness terms
Sba Ppp Loan Forgiveness Portal – For borrowers who are eligible First Draw PPP loans can be qualified to forgive loans. This happens when the loan is disbursed within an 8– to 24-week timeframe.
- The same goes for the compensation and employees.
- The loan proceeds can be used to pay payroll costs or other eligible expenses.
- Minimum 60% of proceeds go to the cost of payroll
Second Draw PPP Conditions for loan forgiveness
Second Draw PPP loans for eligible borrowers can be eligible for loan forgiveness if the loan is paid within an 8to 24 week time frame.
- The levels of compensation and employee pay are kept in the same way in accordance with the First Draw PPP loan
- The loan proceeds can be used to cover expenses for payroll or other eligible expenses.
- At least 60% of profits go towards payroll costs
- How do I request loan forgiveness and when
When all of the loan funds have been utilized The borrower may apply to be granted forgiveness. Borrowers are able to apply for forgiveness any time up to the maturity date of the loan. If the borrower does not apply for forgiveness within 10 years of the date of expiration of the time period that was covered the PPP loans are no longer deferred, and the borrower will be required to make loan payments to their PPP lender.
Download Sba Ppp Loan Forgiveness Portal
Gallery of Sba Ppp Loan Forgiveness Portal
