Former Virginia College Student Loan Forgiveness

Former Virginia College Student Loan Forgiveness

The U.S. Small Business Administration issued a one-page application form designed to make it easier for applicants to complete the application process to forgive Paycheck Protection Program loans, as well as newly revised and updated forms to comply with the latest stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March and provided $284 billion of funding to small businesses that needed loans. The money was intended to offset the economic impact of the coronavirus outbreak. It also included a requirement that the SBA to issue streamlined forms within 24 hours of the legislation being approved by the lawmaker to streamline the application process for forgiveness, along with conditions that aim to increase the number of loans from community banks, particularly for minority-owned businesses that struggled to get loans last year.

Former Virginia College Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, said that the Small Business Administration fulfilled the requirement to issue the one-page PPP form loan forgiveness within 24 hours of 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 issued updated forms.”

Forgiveness terms for the first draw of PPP loans

Former Virginia College Student Loan Forgiveness – First Draw PPP loans made to eligible borrowers qualify for complete loan forgiveness if they do so within the 8 to 24-week period after the loan’s disbursement

  • Pay and worker levels are ensured
  • The loan proceeds are used on payroll and other expenses that are eligible and
  • A minimum of 60% of proceeds are used for the cost of payroll

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans given to borrowers who are eligible can be granted total loan forgiveness if they do so during the 8– to 24-week duration following loan disbursement:

  • The First Draw PPP loan requires that the employee and the compensation levels be maintained in the exact same way.
  • The loan funds are used on payroll costs and other eligible expenses; and
  • A minimum of 60% of the profits are spent on payroll costs
  • What is the best time to apply for loan forgiveness?

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers may apply for forgiveness at any time up to the date of maturity. If they do not file for forgiveness within 10 months of the last day of the period covered and the loan is not renewed, PPP loan payments can not deferred any longer, and borrowers will begin making loan payments to their PPP lender.

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