Americorps Vista Loan Forgiveness

Americorps Vista Loan Forgiveness

The U.S. Small Business Administration released a one-page form aimed at simplifying the process of applying for forgiveness of Paycheck Protection Program loans, along with newly updated and revised forms that conform to the requirements of the most recent stimulus legislation. 

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion of funding for small businesses seeking forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The law requires that the SBA provide simplified forms within the first 24 hours of the legislation’s signing into law. This was done to make it easier to apply for forgiveness. Additionally, it included conditions to encourage banks in the community to lend more, especially to minority-owned businesses who had a difficult time getting loans last year.

Americorps Vista Loan Forgiveness

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

Forgiveness terms in the initial draw of PPP loans

Americorps Vista Loan Forgiveness – First Draw PPP loans given to borrowers who meet the criteria are eligible for full loan forgiveness if within the 8 to 24 week period that follows the loan’s disbursement

  • Employee and compensation levels are ensured
  • The proceeds of the loan can be used to pay for expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of the funds go to payroll costs

Second Draw PPP Loan Forgiveness Conditions

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

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

A borrower may apply for forgiveness after the loan’s proceeds for which the borrower wants forgiveness have been utilized. The borrower can apply for forgiveness at any time up to the date at which the loan matures. If borrowers do not apply for forgiveness within 10 years of the last day of the covered period, then PPP loan payments are no longer deferred, and the borrower will be required to make loan payments to their PPP lender.

Download Americorps Vista Loan Forgiveness

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