Great Lakes Teacher Loan Forgiveness Form

Great Lakes Teacher Loan Forgiveness Form

The U.S. Small Business Administration has issued a one-page form that simplifies the application for forgiveness of Paycheck Protection Program loans. The form also contains newly updated forms that are in line with the most recent stimulus legislation. 

Congress approved the COVID-19 relief plan last month and offered $284 billion in funding to small businesses that needed loans. The funds were used to offset the economic impact of the coronavirus epidemic. The law requires that the SBA release simplified forms within the first 24 hours of the legislation’s signing into law. This was done to facilitate the application for forgiveness. It also included conditions to encourage community banks to make more loans specifically to minority-owned companies who were unable to obtain loans last year.

Great Lakes Teacher Loan Forgiveness Form

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

Terms for forgiveness for the initial draw of PPP loans

Great Lakes Teacher Loan Forgiveness Form – First Draw PPP loans made to borrowers who meet the criteria are eligible for complete loan forgiveness if they do so within the 8-to 24-week period after the disbursement of loan:

  • Employee and compensation levels are ensured
  • The proceeds of the loan can be used to cover 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 granted to borrowers who are eligible can be granted complete loan forgiveness, if within the 8to 24-week covered period following the loan’s disbursement

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

Once all of the loan proceeds have been used The borrower may apply to be granted forgiveness. Borrowers may apply for forgiveness at any time until the loan’s maturity date. If borrowers do not apply for forgiveness within 10 month after the date they will be able to repay the loan are able to receive the loan payment from their PPP lender.

Download Great Lakes Teacher Loan Forgiveness Form

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