The U.S. Small Business Administration issued a one-page application form that aims to simplify the application process for forgiveness of Paycheck Protection Program loans, together with 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 that provided $284 billion of funding for small-scale businesses who needed loans. The money was intended to offset the economic impact of the coronavirus pandemic. The law requires that the SBA issue simplified forms within 24 hours of the signing into law. This is to facilitate the application for forgiveness. It also included conditions that encourage community banks to lend more specifically to minority-owned companies who were unable to obtain loans in the past.
Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs said that the Small Business Administration fulfilled the requirement to issue the one-page form for PPP loan forgiveness within 24 hours of the date of enactment under the Consolidated Appropriations Act, 20,21. This was published on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also published updated forms.”
First Draw PPP Terms of loan forgiveness
Corinthian College Student Loan Forgiveness – For eligible borrowers First Draw PPP loans are suitable to be forgiven. This is when the loan payment is made within an 8– to 24 week period.
- The levels of compensation and employee pay are kept at a constant level.
- The loan funds are used on payroll and other eligible expenses; and
- At least 60% of profits are spent on payroll costs
Second Draw PPP Loan Forgiveness The terms
Second Draw PPP loans for eligible borrowers can be eligible for loan forgiveness when the loan is repaid within an 8to 24-week time frame.
- The levels of compensation and employee pay are kept in the same way in accordance with the First Draw PPP loan
- The loan funds could be used to pay expenses for payroll or other expenses that are eligible.
- A minimum of 60% of the funds go to payroll costs
- How do I request loan forgiveness and the time to apply
A borrower may apply for forgiveness after the loan’s proceeds for which the borrower has applied for forgiveness have been utilized. Borrowers can request forgiveness at any point up to the date of maturity. Borrowers who don’t request forgiveness within 10 months of the end date of the loan are able to receive the loan payment from their PPP lender.
Download Corinthian College Student Loan Forgiveness
Gallery of Corinthian College Student Loan Forgiveness
