Where To Send My Public Service Loan Forgiveness Form

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

Congress approved the COVID-19 relief package last month that included $284 billion of financing to small businesses that needed loans. This money was used to reduce the economic burden of the coronavirus epidemic. The legislation required that the SBA release simplified forms within the first 24 hours of the legislation’s signing into law. This is to facilitate the application for forgiveness. The legislation also contained conditions to encourage community banks to make more loans specifically to minority-owned companies that had difficulty getting loans last year.

Where To Send My Public Service Loan Forgiveness Form

“The Small Business Administration met the requirement of releasing the one page form for loan forgiveness under the PPP within 24 hours of the date of enactment the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published the updated forms.”

Terms for forgiveness for the initial draw of PPP loans

Where To Send My Public Service Loan Forgiveness Form – For eligible borrowers First Draw PPP loans can be suitable to be forgiven. This is when the loan is disbursed within an 8 to 24-week timeframe.

  • This is also true for compensation and employees.
  • The loan proceeds are used on payroll expenses as well as other expenses eligible for reimbursement; and
  • A minimum of 60% of proceeds are used for the cost of payroll

Second Draw PPP Terms of Loan Forgiveness

Second Draw PPP loans for eligible customers are eligible for loan forgiveness if the loan is paid within an 8to 24-week period.

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the identical manner.
  • The loan funds could be used to pay for the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of the profits go towards the cost of payroll
  • When and how do I apply for loan forgiveness?

A borrower may apply for forgiveness after all loan proceeds to which the borrower is requesting forgiveness have been used. The borrower can apply for forgiveness at any time until the date of maturity. If borrowers do not apply for forgiveness within 10 month after the date they will be able to repay the loan will be able to receive loan payments from their PPP lender.

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