Where To Mail My Public Service Loan Forgiveness Form

The U.S. Small Business Administration has released a 1-page form which makes it simpler to request the cancellation of Paycheck Protection Program loans. The form is also updated with new forms that are in line with the latest stimulus law. 

Congress approved the COVID-19 relief plan last month and offered $284 billion in funding to small businesses that needed loans. The money was intended to mitigate the economic effects of the coronavirus outbreak. The law required that the SBA provide simplified forms within the first 24 hours of the signing into law. This was to facilitate the application for forgiveness. The legislation also contained conditions to encourage community banks to lend more particularly to minority-owned businesses that had difficulty getting loans last year.

Where To Mail My Public Service Loan Forgiveness Form

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

First Draw PPP Terms of loan forgiveness

Where To Mail My Public Service Loan Forgiveness Form – First Draw PPP loans granted to eligible borrowers qualify for total loan forgiveness within the 8-to 24 week period that follows the disbursement of loan:

  • This is also true for pay and benefits for employees.
  • The proceeds of the loan can be used to pay the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of the profits are spent on payroll costs

Second Draw PPP Terms of Loan Forgiveness

Second Draw PPP loans given to borrowers who are eligible can be granted total loan forgiveness if they do so during the 8to 24 week duration following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
  • The loan funds could be used to pay for expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of profits are used to pay for payroll expenses
  • How to apply for loan forgiveness , and the time to apply

Once all of the loan funds have been utilized The borrower may apply for forgiveness. The borrower can apply for forgiveness at any time until the date of maturity. Borrowers who do not request forgiveness within 10 month of the end date of the loan will be able to receive loan payments from their PPP lender.

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