Title One Loan Forgiveness Form

Title One Loan Forgiveness Form

The U.S. Small Business Administration has released a single-page form that aims to simplify the process of applying for the forgiveness of Paycheck Protection Program loans, along with newly revised and updated forms to conform to the requirements of the latest stimulus legislation. 

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

Title One Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, stated that the Small Business Administration fulfilled the obligation to issue the PPP form, which is one page long, for loan forgiveness within 24 hours 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 released the updated forms.”

First Draw PPP Terms of loan forgiveness

Title One Loan Forgiveness Form – For eligible borrowers First Draw PPP loans can be suitable for loan forgiveness. This is if the loan disbursement occurs within an 8 to 24-week period.

  • The same goes for the compensation and employees.
  • The loan proceeds can be used to pay the cost of payroll as well as other expenses that are eligible.
  • At least 60% of the proceeds are used for the cost of payroll

Second Draw PPP Loan Forgiveness Conditions

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

  • Employee and compensation levels are maintained in the same way in accordance with the First Draw PPP loan
  • The loan funds can be used to pay for payroll costs or other eligible expenses.
  • At least 60% of proceeds are spent on payroll costs
  • When and how do I apply for loan forgiveness?

After all loan’s proceeds have been used, a borrower can apply to be forgiven. Borrowers can apply for forgiveness at any time prior until the date of maturity of the loan. If they do not file for forgiveness within 10 months after the end of the time period that was covered, then PPP loans are not deferred any longer, and borrowers will begin making monthly payments to their PPP lender.

Download Title One Loan Forgiveness Form

Gallery of Title One Loan Forgiveness Form


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