Ecmc Student Loan Forgiveness

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 to forgive Paycheck Protection Program loans, along with newly updated and revised forms that conform to the requirements of the latest stimulus legislation. 

The COVID-19 relief package that Congress approved last month renewed the PPP with $284 billion of funds for small businesses that want forgiven loans to help deal with the financial fallout from the coronavirus outbreak. It also included a requirement that the SBA to issue simplified forms within 24 hours of the bill being signed into law to simplify the application process for forgiveness. It also included conditions meant to encourage more loans from community banks, specifically for minority-owned companies that were unable to obtain loans in the past.

Ecmc Student Loan Forgiveness

“The Small Business Administration met the requirements to release the one page form for loan forgiveness under the PPP within 24 hours of the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also issued new forms that were updated.”

Forgiveness terms for the first draw of PPP loans

Ecmc Student Loan Forgiveness – First Draw PPP loans made to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8- to 24-week covered period following the loan’s disbursement

  • Pay and worker levels are kept at a constant level.
  • The proceeds of the loan can be used to cover payroll costs or other expenses that are eligible.
  • At least 60% of proceeds go to payroll costs

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans made to borrowers who are eligible can be granted full loan forgiveness if during the 8– to 24-week duration following the loan’s disbursement

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

A borrower may apply for forgiveness only after the loan’s proceeds for which the borrower is requesting forgiveness have been used. The borrower can apply for forgiveness at any time until the loan’s maturity date. If borrowers do not apply for forgiveness within 10 months of the expiration date of the loan will be able to receive payment from their PPP lender.

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