Dental Student Loan Forgiveness Program

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

Congress approved the COVID-19 relief package in the month of March that provided $284 billion of funding to small businesses that needed loans. The funds were used to offset the economic impact of the coronavirus outbreak. It included a requirement for the SBA to issue streamlined forms within 24 hours after the legislation was adopted to make the application process for forgiveness. The legislation also contained conditions meant to encourage more loans from community banks, especially for minority-owned businesses that were unable to obtain loans in the past.

Dental Student Loan Forgiveness Program

“The Small Business Administration met the requirement to issue the one page form for the forgiveness of PPP loans within 24 hours of the date of enactment 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 issued new forms that were updated.”

Terms for forgiveness for the first draw of PPP loans

Dental Student Loan Forgiveness Program – First Draw PPP loans given to borrowers who are eligible can be granted total loan forgiveness during the 8- to 24-week covered period following the loan’s disbursement

  • It’s the same for employee compensation and the.
  • The loan proceeds are used on payroll costs and other expenses that are eligible and
  • A minimum of 60% of the proceeds are used to pay for payroll expenses

Second Draw PPP Conditions for loan forgiveness

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

  • Employee and compensation levels are maintained in the same way as required for the First Draw PPP loan
  • The loan funds can be used to pay for payroll costs or other eligible expenses.
  • A minimum of 60% of the profits go towards payroll costs
  • How do I apply for loan forgiveness , and when to apply

The borrower is eligible for forgiveness after all loan proceeds to which the borrower wants forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. Borrowers who don’t request forgiveness within 10 months after the date they will be able to repay the loan are eligible to receive the loan payment from their PPP lender.

Download Dental Student Loan Forgiveness Program

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