Former Liberty Students Loan Forgiveness

Former Liberty Students Loan Forgiveness

The U.S. Small Business Administration has issued a one-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 current stimulus law. 

Congress approved the COVID-19 relief plan last month, which offered $284 billion in funding to small businesses in need of loans. The funds were used to reduce the economic burden of the coronavirus outbreak. The law required that the SBA issue simplified forms within the first 24 hours after the bill’s passage into law. This is to facilitate the application for forgiveness. Additionally, it included conditions that encourage community banks to lend more specifically to minority-owned companies that had difficulty getting loans last year.

Former Liberty Students Loan Forgiveness

“The Small Business Administration met the requirement of releasing the single-page form for PPP loan forgiveness within 24 days of the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars who is a partner of Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published more updated forms.”

Forgiveness terms in the initial draw of PPP loans

Former Liberty Students Loan Forgiveness – For borrowers who are eligible, First Draw PPP loans can be qualified to be forgiven. This applies when the loan is disbursed within an 8 to 24-week period.

  • Employee and compensation levels are maintained
  • The loan proceeds are used on payroll expenses and other expenses that are eligible and
  • At least 60% of profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans given to eligible borrowers qualify for full loan forgiveness if during the 8to 24 week duration following loan payment:

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in the exact same way.
  • The loan proceeds are spent on payroll expenses and other expenses that are eligible and
  • Minimum 60% of proceeds go to expenses for payroll
  • How do I request loan forgiveness and when to apply

A borrower may apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been utilized. Borrowers are able to apply for forgiveness anytime up to the maturity date of the loan. Borrowers who do not request forgiveness within 10 month after the date they will be able to repay the loan are eligible to receive payment from their PPP lender.

Download Former Liberty Students Loan Forgiveness

Gallery of Former Liberty Students Loan Forgiveness


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