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 is also updated with new forms to comply with the most recent stimulus law.
Congress approved the COVID-19 relief plan last month and included $284 billion of financing to small businesses in need of loans. This money was used to reduce the economic burden of the coronavirus outbreak. It included a requirement for the SBA to issue simplified forms within 24 hours of the legislation being signed into law to simplify the application process for forgiveness. The legislation also contained conditions designed to facilitate more loans from community banks, specifically for minority-owned businesses who had trouble getting loans in the past.
“The Small Business Administration met the requirement to issue the one page form for PPP loan forgiveness by 24 days after the date of 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 published new forms.”
First Draw PPP Loan forgiveness terms
Federal Student Loans Teacher Forgiveness Form – First Draw PPP loans given to borrowers who are eligible can be granted complete loan forgiveness if they do so during the 8- to 24 week period that follows loan disbursement:
- This is also true for employee compensation and the.
- The loan funds are used on payroll as well as other expenses eligible for reimbursement; and
- Minimum 60% of proceeds go to payroll costs
Second Draw PPP Terms of Loan Forgiveness
Second Draw PPP loans to qualified customers are eligible for loan forgiveness when the loan is paid within an 8to 24-week period.
- Employee and compensation levels are maintained in the same way as is required for the First Draw PPP loan
- The loan funds are used on payroll and other eligible expenses; and
- Minimum 60% of proceeds go to payroll costs
- How do I apply for loan forgiveness , and when to apply
Once all of the loan funds have been utilized The borrower may apply to be granted forgiveness. The borrower can request forgiveness anytime up to the maturity date of the loan. Borrowers who do not request forgiveness within 10 months of the expiration date of the loan are able to receive payment from their PPP lender.
Download Federal Student Loans Teacher Forgiveness Form
Gallery of Federal Student Loans Teacher Forgiveness Form
