Department Of Education Student Loan Forgiveness Form

The U.S. Small Business Administration issued a one-page application form designed to make it easier for applicants to complete the process of applying for the forgiveness of Paycheck Protection Program loans, along with newly updated and revised forms that comply with the latest stimulus legislation. 

Congress approved the COVID-19 relief plan last month and offered $284 billion in funding for small-scale businesses who needed loans. The money was intended to reduce the economic burden of the coronavirus pandemic. The law required that the SBA release simplified forms within the first 24 hours after the bill’s passage into law. This was to make it easier to apply for forgiveness. The legislation also contained conditions to encourage banks in the community to lend more, especially to minority-owned businesses who were unable to obtain loans in the past.

Department Of Education Student Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, stated that the Small Business Administration fulfilled the requirement to issue the PPP form, which is one page long, for loan forgiveness within 24 days from 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 issued more updated forms.”

Forgiveness terms for the first draw of PPP loans

Department Of Education Student Loan Forgiveness Form – First Draw PPP loans given to borrowers who are eligible can be granted full loan forgiveness if within the 8 to 24-week period after the loan’s disbursement

  • The same goes for the pay and benefits for employees.
  • The loan funds are used on payroll expenses as well as other expenses eligible for reimbursement; and
  • At least 60% of profits are used to pay for payroll expenses

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans to qualified customers are eligible for loan forgiveness if the loan is paid within an 8 24 week time frame.

  • Pay and worker levels are maintained in the same way as required for the First Draw PPP loan
  • The loan proceeds are used on payroll expenses as well as other eligible expenses and
  • Minimum 60% of funds go to the cost of payroll
  • How to apply for loan forgiveness and when

A borrower may apply for forgiveness only after all loan proceeds to which the borrower wants forgiveness have been utilized. Borrowers can request forgiveness at any time up to the date of maturity. If borrowers do not apply for forgiveness within 10 months after the date of expiration of the covered period, then PPP loan payments can not deferred any longer, and the borrower will be required to make loan payments to their PPP lender.

Download Department Of Education Student Loan Forgiveness Form

Gallery of Department Of Education Student Loan Forgiveness Form

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