Title 1 Loan Forgiveness Form 2022

The U.S. Small Business Administration released a one-page form aimed at simplifying the application process for forgiveness of Paycheck Protection Program loans, together with revised and updated forms to meet the requirements of the latest stimulus legislation. 

Congress approved the COVID-19 relief plan last month, which included $284 billion of financing to small businesses in need of loans. The money was intended to offset the economic impact of the coronavirus pandemic. The legislation required that the SBA issue simplified forms within the first 24 hours of the signing into law. This is to simplify the process of applying for forgiveness. Additionally, it included conditions that would encourage community banks to lend more specifically to minority-owned companies that had difficulty getting loans last year.

Title 1 Loan Forgiveness Form 2022

“The Small Business Administration met the requirement of releasing the one page form for PPP loan forgiveness within 24 days of the date of enactment of 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 issued updated forms.”

Forgiveness terms for the initial draw of PPP loans

Title 1 Loan Forgiveness Form 2022 – For borrowers who are eligible First Draw PPP loans can be qualified to forgive loans. This applies when the loan is disbursed within an 8 to 24-week timeframe.

  • This is also true for compensation and employees.
  • The loan proceeds can be used to cover payroll costs or other eligible expenses.
  • At least 60% of profits are used for the cost of payroll

Second Draw PPP Conditions for loan forgiveness

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

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an exact same way.
  • The loan funds could be used to cover the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of profits are spent on payroll costs
  • When and how do I apply for loan forgiveness

A borrower may apply for forgiveness only after all loan proceeds for which the borrower has applied for forgiveness have been utilized. Borrowers can request forgiveness at any time up to the loan’s maturity date. If borrowers do not apply for forgiveness within 10 months of the end of the period covered, then PPP loan payments can no longer deferred and borrowers will begin making loan payments to their PPP lender.

Download Title 1 Loan Forgiveness Form 2022

Gallery of Title 1 Loan Forgiveness Form 2022

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