Great Lakes Student Loan Forgiveness

The U.S. Small Business Administration has released a form of one page which makes it simpler to request the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms that are in line with the current stimulus legislation. 

The COVID-19 relief plan that Congress approved last month renewed the PPP with $284 billion of funding for small businesses seeking forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The package also mandated the SBA to issue simplified forms within 24 days of the bill being approved by the lawmaker to streamline the procedure of applying for forgiveness, along with conditions that aim to increase the number of bank loans by community banks, especially for minority-owned businesses that had trouble getting loans last year.

Great Lakes Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and said that the Small Business Administration fulfilled the obligation 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. The article was posted on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also released new forms.”

First Draw PPP Terms of loan forgiveness

Great Lakes Student Loan Forgiveness – First Draw PPP loans given to eligible borrowers qualify for complete loan forgiveness if they do so within the 8-to 24-week period after loan disbursement:

  • Employee and compensation levels are ensured
  • The proceeds from the loan may be used to pay the cost of payroll as well as other eligible expenses.
  • At least 60% of proceeds go to expenses for payroll

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans to qualified borrowers are eligible for loan repayment when the loan is repaid within an 8– to 24 week time frame.

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the identical manner.
  • The loan proceeds can be used to pay the cost of payroll as well as other expenses that are eligible.
  • At least 60% of the proceeds are spent on payroll costs
  • How and when to apply for loan forgiveness?

Once all of the loan’s proceeds have been used, a borrower can apply to be forgiven. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months of the end date of the loan are able to receive the loan payment from their PPP lender.

Download Great Lakes Student Loan Forgiveness

Gallery of Great Lakes Student Loan Forgiveness

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