Devry University Student Loan Forgiveness

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

The COVID-19 aid package Congress adopted last month revived the PPP with $284 billion of funding for small businesses seeking forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The package also mandated the SBA to issue simplified forms within 24 hours of the bill being approved by the lawmaker to streamline the process of applying for forgiveness, along with conditions meant to encourage more loans from community banks, especially for minority-owned companies that struggled to get loans last year.

Devry University Student Loan Forgiveness

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

Forgiveness terms in the initial draw of PPP loans

Devry University Student Loan Forgiveness – First Draw PPP loans granted to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8- to 24 week period that follows the loan’s disbursement

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll and other expenses that are eligible and
  • A minimum of 60% of the profits are used to pay for payroll expenses

Second Draw PPP Terms of Loan Forgiveness

Second Draw PPP loans made to eligible borrowers qualify for complete loan forgiveness, if within the 8– to 24-week covered period following loan payment:

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the exactly the same manner.
  • The loan funds are used on payroll and other expenses that are eligible and
  • A minimum of 60% of the profits are spent on payroll costs
  • How to apply for loan forgiveness , and when

The borrower is eligible for forgiveness after all loan proceeds to which the borrower wants forgiveness have been used. Borrowers can apply for forgiveness at any time prior until the date of maturity of the loan. If they do not file for forgiveness within 10 years of the date of expiration of the period covered, then PPP loan payments can not deferred any longer, and borrowers will begin making monthly payments to their PPP lender.

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