Title 1 Loan Forgiveness Form

Title 1 Loan Forgiveness Form

The U.S. Small Business Administration has released a single-page form designed to make it easier for applicants to complete the application process for forgiveness of Paycheck Protection Program loans, together with updated and revised forms to comply with the latest stimulus legislation. 

The COVID-19 relief plan that Congress approved last month renewed the PPP with $284 billion in funding for small businesses seeking forgiveness loans to help them deal with the financial fallout from the coronavirus pandemic. It included a requirement for the SBA to issue streamlined forms within 24 days of the bill being approved by the lawmaker to streamline the procedure of applying for forgiveness, along with conditions that aim to increase the number of bank loans by community banks, specifically for minority-owned businesses who had trouble getting loans in the past.

Title 1 Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and said that the Small Business Administration fulfilled the requirement to publish the one-page form for PPP loan forgiveness within 24 days from the date of enactment under the Consolidated Appropriations Act, 20,21. This was published on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also published additional updated forms.”

First Draw PPP Loan forgiveness terms

Title 1 Loan Forgiveness Form – For those who qualify, First Draw PPP loans are eligible for loan forgiveness. This applies when the loan payment is made within an 8 to 24-week period.

  • Employee and compensation levels are maintained
  • The loan proceeds are used on payroll costs and other eligible expenses; and
  • At least 60% of the profits are used to pay for payroll expenses

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans granted to borrowers who meet the criteria are eligible for total loan forgiveness if they do so during the 8– to 24-week time period after loan disbursement:

  • The levels of compensation and employee pay are maintained in the same way in accordance with the First Draw PPP loan
  • The loan proceeds are spent on payroll costs as well as other eligible expenses and
  • At least 60% of the proceeds are used to pay for payroll expenses
  • How to request loan forgiveness and when to apply

After all loan’s proceeds have been used, a borrower can apply to be granted forgiveness. Borrowers can apply for forgiveness any time up until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 month after the date they will be able to repay the loan are eligible to receive the loan payment from their PPP lender.

Download Title 1 Loan Forgiveness Form

Gallery of Title 1 Loan Forgiveness Form


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