Art Institute Student Loan Forgiveness

The U.S. Small Business Administration released a one-page form designed to make it easier for applicants to complete the application process for forgiveness of Paycheck Protection Program loans, along with newly updated and revised forms to meet the requirements of the most recent stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March, which offered $284 billion in funding for small-scale businesses who needed loans. The money was intended to reduce the economic burden of the coronavirus outbreak. The law required that the SBA provide simplified forms within the first 24 hours of the legislation’s signing into law. This is to make it easier to apply for forgiveness. Additionally, it included conditions that encourage community banks to lend more, especially to minority-owned businesses that had difficulty getting loans last year.

Art Institute Student Loan Forgiveness

“The Small Business Administration met the requirement to issue 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 who is a partner of Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published the updated forms.”

Forgiveness terms for the first draw of PPP loans

Art Institute Student Loan Forgiveness – First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if within the 8 to 24-week covered period following the loan’s disbursement

  • The same goes for the employee compensation and the.
  • The loan proceeds are used on payroll as well as other expenses eligible for reimbursement; and
  • A minimum of 60% of the profits go towards payroll costs

Second Draw PPP Conditions for loan forgiveness

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

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the exactly the same manner.
  • The loan funds can be used to cover expenses for payroll or other expenses that are eligible.
  • At least 60% of the profits are spent on payroll costs
  • When and how do I apply for loan forgiveness?

After all loan’s proceeds have been used, a borrower can apply for forgiveness. Borrowers can request forgiveness at any point up to the date of maturity. Borrowers who don’t request forgiveness within 10 months of the expiration date of the loan will be able to receive the loan payment from their PPP lender.

Download Art Institute Student Loan Forgiveness

Gallery of Art Institute Student Loan Forgiveness

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