William D Ford Loan Forgiveness Form

William D Ford Loan Forgiveness Form

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

The COVID-19 relief package that Congress passed last month revived the PPP with $284 billion of funding for small businesses seeking forgiven loans to help deal with the financial fallout of the coronavirus epidemic. It also included a requirement that the SBA to issue simplified forms within the first 24 hours after the legislation was adopted to make the process of applying for forgiveness. The legislation also contained conditions meant to encourage more bank loans by community banks, specifically for minority-owned businesses who struggled to get loans last year.

William D Ford Loan Forgiveness Form

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

First Draw PPP Loan forgiveness terms

William D Ford Loan Forgiveness Form – For those who qualify First Draw PPP loans are qualified to be forgiven. This is when the loan is disbursed within an 8 to 24 week period.

  • The same goes for the compensation and employees.
  • The loan proceeds are used on payroll costs and other expenses that are eligible and
  • A minimum of 60% of proceeds are used to pay for payroll expenses

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans to eligible borrowers are qualified for loan forgiveness when the loan is repaid within an 8– to 24-week time frame.

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an exactly the same manner.
  • The loan proceeds are used on payroll and other expenses that are eligible and
  • A minimum of 60% of profits are used to pay for payroll expenses
  • How to request loan forgiveness and the time to apply

A borrower can apply for forgiveness once all loan proceeds for which the borrower has applied for forgiveness have been used. Borrowers may apply for forgiveness at any point up to the date at which the loan matures. If borrowers do not apply for forgiveness within 10 months of the last day of the covered period and the loan is not renewed, PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Download William D Ford Loan Forgiveness Form

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