South Carolina Pace Loan Forgiveness Form

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

Congress approved the COVID-19 relief plan last month that offered $284 billion in funding to small businesses that needed loans. The money was intended to mitigate the economic effects of the coronavirus epidemic. The law required that the SBA issue simplified forms within the first 24 hours of the signing into law. This was to make it easier to apply for forgiveness. It also included conditions that would encourage community banks to make more loans, especially to minority-owned businesses who were unable to obtain loans in the past.

South Carolina Pace Loan Forgiveness Form

“The Small Business Administration met the requirement to issue the one-page form for the forgiveness of PPP loans by 24 days after the date of enactment the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published updated forms.”

Terms for forgiveness for the initial draw of PPP loans

South Carolina Pace Loan Forgiveness Form – First Draw PPP loans granted to borrowers who are eligible can be granted complete loan forgiveness if they do so within the 8-to 24-week period after loan disbursement:

  • Pay and worker levels are maintained
  • The loan proceeds can be used to pay payroll costs or other eligible expenses.
  • A minimum of 60% of the funds go to payroll costs

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans granted to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8to 24-week covered period following loan disbursement:

  • The First Draw PPP loan requires that the employee and compensation levels be maintained in the exactly the same manner.
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • Minimum 60% of profits go towards payroll costs
  • How and when to apply for loan forgiveness?

A borrower can apply for forgiveness only after all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can request forgiveness at any point up to the date at which the loan matures. If borrowers do not apply for forgiveness within 10 month of the end date of the loan are able to receive the loan payment from their PPP lender.

Download South Carolina Pace Loan Forgiveness Form

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