Acs Teacher Loan Forgiveness Program

Acs Teacher Loan Forgiveness Program

The U.S. Small Business Administration has released a form of one page which makes it simpler to request forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that comply with the current stimulus law. 

Congress approved the COVID-19 relief package last month that provided $284 billion of funding to small businesses in need of loans. The funds were used to offset the economic impact of the coronavirus epidemic. It included a requirement for the SBA to issue simplified forms within 24 hours of the bill being approved by the lawmaker to streamline the procedure of applying for forgiveness. The legislation also contained conditions meant to encourage more loans from community banks, especially for minority-owned companies that were unable to obtain loans in the past.

Acs Teacher Loan Forgiveness Program

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

First Draw PPP Conditions for loan forgiveness

Acs Teacher Loan Forgiveness Program – First Draw PPP loans granted to borrowers who are eligible can be granted total loan forgiveness during the 8- to 24-week period after loan disbursement:

  • Employee and compensation levels are maintained
  • The proceeds from the loan may be used to pay for the cost of payroll as well as other expenses that are eligible.
  • Minimum 60% of profits go towards the cost of payroll

Second Draw PPP Conditions for loan forgiveness

Second Draw PPP loans given to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8– to 24-week covered period following loan disbursement:

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

The borrower is eligible for forgiveness once all loan proceeds to which the borrower wants forgiveness have been utilized. Borrowers are able to apply for forgiveness anytime up until the date of maturity of the loan. If the borrower does not apply for forgiveness within 10 years of the last day of the time period that was covered and the loan is not renewed, PPP loan payments are no longer deferred, and the borrower will be required to make loan payments to their PPP lender.

Download Acs Teacher Loan Forgiveness Program

Gallery of Acs Teacher Loan Forgiveness Program


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