The Public Service Loan Forgiveness Program Form

The U.S. Small Business Administration has released a form of one page that simplifies the application for forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that comply with the current stimulus legislation. 

Congress approved the COVID-19 relief plan last month, which offered $284 billion in funding to small businesses that needed loans. This money was used to reduce the economic burden of the coronavirus epidemic. The legislation required that the SBA issue simplified forms within the first 24 hours after the bill’s passage into law. This was done to simplify the process of applying for forgiveness. It also included conditions that would encourage community banks to make more loans specifically to minority-owned companies that had difficulty getting loans last year.

The Public Service Loan Forgiveness Program Form

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

First Draw PPP Loan forgiveness terms

The Public Service Loan Forgiveness Program Form – For those who qualify, First Draw PPP loans are qualified for loan forgiveness. This is when the loan payment is made within an 8 to 24-week timeframe.

  • It’s the same for employee compensation and the.
  • The loan proceeds are spent on payroll and other expenses that are eligible and
  • Minimum 60% of proceeds go to the cost of payroll

Second Draw PPP Conditions for loan forgiveness

Second Draw PPP loans to qualified borrowers can be qualified for loan forgiveness if the loan is paid within an 8– to 24 week period.

  • The levels of compensation and employee pay are kept in the same way as is required for the First Draw PPP loan
  • The proceeds of the loan can be used to pay expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of the proceeds are used for the cost of payroll
  • How and when to apply for loan forgiveness?

The borrower is eligible for forgiveness once the loan’s proceeds for which the borrower wants forgiveness have been utilized. Borrowers can apply for forgiveness at any time prior until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 months of the last day of the period covered the PPP loan payments are not deferred any longer, and borrowers must make payment to their PPP lender.

Download The Public Service Loan Forgiveness Program Form

Gallery of The Public Service Loan Forgiveness Program Form

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