Simmons And Miller Loan Forgiveness

The U.S. Small Business Administration has issued a one-page form which makes it simpler to request forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that are in line with the current stimulus law. 

Congress approved the COVID-19 relief package last month, which included $284 billion of financing for small-scale businesses who needed loans. This money was used to mitigate the economic effects of the coronavirus outbreak. It also included a requirement that the SBA to issue simplified forms within 24 hours of the bill being signed into law to simplify the process of applying for forgiveness. It also included conditions designed to facilitate more loans from community banks, particularly for minority-owned businesses who struggled to get loans last year.

Simmons And Miller Loan Forgiveness

“The Small Business Administration met the requirements to release the one-page form for loan forgiveness under the PPP by 24 days after the date of the enactment of 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 issued updated forms.”

Terms for forgiveness for the initial draw of PPP loans

Simmons And Miller Loan Forgiveness – First Draw PPP loans given to borrowers who meet the criteria are eligible for complete loan forgiveness if they do so within the 8 to 24 week period that follows the loan’s disbursement

  • The same goes for the employee compensation and the.
  • The proceeds of the loan can be used to pay for the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans for eligible customers are eligible for loan repayment if the loan is paid within an 8 24-week time frame.

  • The First Draw PPP loan requires that the employee and compensation levels be maintained in the exact same way.
  • The loan funds are used on payroll expenses and other eligible expenses; and
  • A minimum of 60% of the funds go to the cost of payroll
  • How do I request loan forgiveness and when to apply

A borrower may apply for forgiveness once all loan proceeds for which the borrower has applied for forgiveness have been utilized. The borrower can apply for forgiveness at any time up to the date at which the loan matures. If the borrower does not apply for forgiveness within 10 years of the end of the time period that was covered, then PPP loans are no longer deferred and borrowers must make monthly payments to their PPP lender.

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