Upload Public Service Loan Forgiveness Form

The U.S. Small Business Administration has issued a one-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms that comply with the current stimulus legislation. 

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion in financing for small-scale businesses looking for forgiven loans to help to deal with the effects of economic collapse from the coronavirus pandemic. It also included a requirement that the SBA to issue simplified forms within 24 days after the legislation was adopted to make the procedure of applying for forgiveness, along with conditions designed to facilitate more loans from community banks, specifically for minority-owned businesses who had trouble getting loans in the past.

Upload Public Service Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, said that the Small Business Administration fulfilled the requirement to issue the one-page form for PPP loan forgiveness within the first 24 hours of the date of enactment in the Consolidated Appropriations Act, 20,21. The article was posted on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also released more updated forms.”

First Draw PPP Conditions for loan forgiveness

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

  • It’s the same for compensation and employees.
  • The loan proceeds can be used to pay expenses for payroll or other eligible expenses.
  • At least 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans given to borrowers who are eligible can be granted complete loan forgiveness, if within the 8to 24 week time period after the loan’s disbursement

  • Employee and compensation levels are kept in the same way as required for the First Draw PPP loan
  • 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 spent on payroll costs
  • What is the best time to apply for loan forgiveness?

A borrower can apply for forgiveness only after all loan proceeds to which the borrower is requesting forgiveness have been utilized. Borrowers can request forgiveness at any time up to the date at which the loan matures. Borrowers who do not request forgiveness within 10 months of the end date of the loan will be able to receive the loan payment from their PPP lender.

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