Fedloan Teacher Loan Forgiveness Form

Fedloan Teacher Loan Forgiveness Form

The U.S. Small Business Administration has released a 1-page form that simplifies the application for forgiveness of Paycheck Protection Program loans. It also includes newly revised forms to comply with the most recent stimulus legislation. 

The COVID-19 aid package Congress passed last month revived the PPP with $284 billion of funds for small businesses that want forgiveness loans to help them cope with the economic fallout of the coronavirus epidemic. The legislation required that the SBA issue simplified forms within the first 24 hours after the bill’s passage 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, especially to minority-owned businesses who were unable to obtain loans last year.

Fedloan Teacher Loan Forgiveness Form

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and wrote that the Small Business Administration fulfilled the requirement to issue the PPP form, which is one page long, for loan forgiveness within 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 additional updated forms.”

First Draw PPP Conditions for loan forgiveness

Fedloan Teacher Loan Forgiveness Form – First Draw PPP loans granted to borrowers who meet the criteria are eligible for full loan forgiveness if within the 8 to 24 week period that follows the loan’s disbursement

  • It’s the same for compensation and employees.
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • A minimum of 60% of the funds go to payroll costs

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans to eligible borrowers are qualified for loan forgiveness when the loan is paid within an 8 24 week period.

  • The levels of compensation and employee pay are kept in the same way in accordance with the First Draw PPP loan
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • At least 60% of profits go towards the cost of payroll
  • How to request loan forgiveness and when to apply

When all of the loan’s proceeds have been used, a borrower can apply to be granted forgiveness. Borrowers can request forgiveness at any time until the date at which the loan matures. If borrowers do not apply for forgiveness within 10 months after the end of the time period that was covered the PPP loans are no longer deferred, and the borrower will be required to make loan payments to their PPP lender.

Download Fedloan Teacher Loan Forgiveness Form

Gallery of Fedloan Teacher Loan Forgiveness Form


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