Federal Student Loan Forgiveness For Nurses

Federal Student Loan Forgiveness For Nurses

The U.S. Small Business Administration has issued a one-page form that simplifies the application for forgiveness of Paycheck Protection Program loans. The form also contains newly updated forms to comply with the latest stimulus legislation. 

The COVID-19 relief plan that Congress passed last month revived the PPP with $284 billion in financing for small-scale businesses looking for forgiven loans to help to deal with the effects of economic collapse from the coronavirus pandemic. The legislation required that the SBA provide simplified forms within the first 24 hours of the legislation’s signing into law. This is to facilitate the application for forgiveness. Additionally, it included conditions to encourage community banks to make more loans, especially to minority-owned businesses that had difficulty getting loans last year.

Federal Student Loan Forgiveness For Nurses

“The Small Business Administration met the requirements to release the single-page form for the forgiveness of PPP loans by 24 days after the date of 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 issued the updated forms.”

First Draw PPP Terms of loan forgiveness

Federal Student Loan Forgiveness For Nurses – First Draw PPP loans made to borrowers who meet the criteria are eligible for total loan forgiveness within the 8 to 24-week covered period following the loan’s disbursement

  • The levels of compensation and employee pay are ensured
  • The loan proceeds can be used to cover payroll costs or other eligible expenses.
  • At least 60% of profits are spent on payroll costs

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans to qualified borrowers can be qualified for loan forgiveness when the loan is paid within an 8– to 24-week time frame.

  • Employee and compensation levels are maintained in the same way as is required for the First Draw PPP loan
  • The proceeds of the loan could be used to cover the cost of payroll as well as other eligible expenses.
  • Minimum 60% of proceeds go to payroll costs
  • What is the best time to apply for loan forgiveness

A borrower may apply for forgiveness only after all loan proceeds for which the borrower has applied for forgiveness have been utilized. The borrower can apply for forgiveness at any point up to the loan’s maturity date. If borrowers do not apply for forgiveness within 10 months of the expiration date of the loan are eligible to receive loan payments from their PPP lender.

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