Federal Teacher Loan Forgiveness Form

Federal Teacher Loan Forgiveness Form

The U.S. Small Business Administration has released a 1-page form that makes it easier to apply for forgiveness of Paycheck Protection Program loans. The form is also updated with new forms to comply with the latest stimulus law. 

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion in funds for small businesses that want forgiveness loans to help them cope with the economic fallout from the coronavirus pandemic. The legislation required that the SBA issue simplified forms within the first 24 hours of the legislation’s signing into law. This is to simplify the process of applying for forgiveness. It also included conditions that encourage banks in the community to lend more specifically to minority-owned companies that had difficulty getting loans last year.

Federal Teacher Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs wrote that the Small Business Administration fulfilled the requirement to issue the one-page form for PPP loan forgiveness within the first 24 hours from the date of the enactment of the Consolidated Appropriations Act, 20,21. This was published on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also released new forms.”

First Draw PPP Terms of loan forgiveness

Federal Teacher Loan Forgiveness Form – First Draw PPP loans granted to eligible borrowers qualify for full loan forgiveness if within the 8-to 24-week period after the loan’s disbursement

  • The same goes for the employee compensation and the.
  • The proceeds of the loan can be used to pay payroll costs or other eligible expenses.
  • A minimum of 60% of profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness The terms

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

  • The First Draw PPP loan requires that the employee and compensation levels be maintained in an exactly the same manner.
  • The loan proceeds could be used to cover expenses for payroll or other eligible expenses.
  • A minimum of 60% of the proceeds are used for the cost of payroll
  • What is the best time to apply for loan forgiveness

After all loan funds have been utilized the borrower is eligible to be forgiven. The borrower can apply for forgiveness at any time up to the date of maturity. Borrowers who don’t request forgiveness within 10 month of the expiration date of the loan will be able to receive the loan payment from their PPP lender.

Download Federal Teacher Loan Forgiveness Form

Gallery of Federal Teacher Loan Forgiveness Form


Leave a Reply

Your email address will not be published.