Arguments For Student Loan Forgiveness

Arguments For Student Loan Forgiveness

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 comply with the most recent stimulus legislation. 

Congress approved the COVID-19 relief package last month and offered $284 billion in funding for small-scale businesses who needed loans. This money was used to mitigate the economic effects of the coronavirus outbreak. The package also mandated the SBA to issue streamlined forms within 24 days of the bill being adopted to make the process of applying for forgiveness. It also included conditions designed to facilitate more bank loans by community banks, especially for minority-owned businesses who struggled to get loans in the past.

Arguments For Student Loan Forgiveness

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

Forgiveness terms for the first draw of PPP loans

Arguments For Student Loan Forgiveness – For those who qualify, First Draw PPP loans can be suitable to be forgiven. This is if the loan disbursement occurs within an 8 to 24-week timeframe.

  • It’s the same for employee compensation and the.
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • A minimum of 60% of profits are used for the cost of payroll

Second Draw PPP Terms of Loan Forgiveness

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

  • Pay and worker levels are maintained in the same manner as is required for the First Draw PPP loan
  • The loan proceeds could be used to pay expenses for payroll or other eligible expenses.
  • At least 60% of the profits are used to pay for payroll expenses
  • How to request loan forgiveness and when to apply

Once all of the loan’s proceeds have been used the borrower is eligible for forgiveness. Borrowers may apply for forgiveness at any time until the date of maturity. Borrowers who don’t request forgiveness within 10 months of the end date of the loan are able to receive loan payments from their PPP lender.

Download Arguments For Student Loan Forgiveness

Gallery of Arguments For Student Loan Forgiveness


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