Did Trump Forgive Campaign Loans

The U.S. Small Business Administration has issued a one-page form that makes it easier to apply for the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms that comply with the most recent stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March and included $284 billion of financing to small businesses in need of loans. The funds were used to reduce the economic burden of the coronavirus outbreak. It also included a requirement that the SBA to issue simplified forms within the first 24 hours of the bill being adopted to make the procedure of applying for forgiveness. It also included conditions that aim to increase the number of bank loans by community banks, specifically for minority-owned companies that were unable to obtain loans in the past.

Did Trump Forgive Campaign Loans

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, said that the Small Business Administration fulfilled the requirement to publish the PPP form, which is one page long, for loan forgiveness within the first 24 hours of the date of enactment under the Consolidated Appropriations Act, 20,21. This was on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also issued the updated forms.”

First Draw PPP Loan forgiveness terms

Did Trump Forgive Campaign Loans – For eligible borrowers First Draw PPP loans are qualified to be forgiven. This is when the loan is disbursed within an 8 to 24-week period.

  • Employee and compensation levels are ensured
  • The proceeds from the loan may be used to pay for payroll costs or other eligible expenses.
  • A minimum of 60% of proceeds are spent on payroll costs

Second Draw PPP Conditions for loan forgiveness

Second Draw PPP loans granted to borrowers who are eligible can be granted complete loan forgiveness, if within the 8to 24 week duration following the loan’s disbursement

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in the identical manner.
  • The loan funds are used on payroll and other eligible expenses; and
  • At least 60% of proceeds go to expenses for payroll
  • When and how do I apply for loan forgiveness

When all of the loan funds have been utilized the borrower is eligible for forgiveness. The borrower can request forgiveness anytime up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months of the date of expiration of the time period that was covered, then PPP loan payments can no longer deferred, and borrowers must make monthly payments to their PPP lender.

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