Has Any Itt Former Students Got Their Loans Forgiven

Has Any Itt Former Students Got Their Loans Forgiven

The U.S. Small Business Administration has released a single-page form aimed at simplifying the process of applying to forgive Paycheck Protection Program loans, along with newly updated and revised forms to comply with the latest stimulus legislation. 

The COVID-19 relief package that Congress approved last month renewed the PPP with $284 billion in financing for small-scale businesses looking for forgivable loans to help them cope with the economic fallout from the coronavirus pandemic. The law requires that the SBA provide simplified forms within 24 hours of the signing into law. This was done to facilitate the application for forgiveness. The legislation also contained conditions that would encourage banks in the community to lend more particularly to minority-owned businesses that had difficulty getting loans last year.

Has Any Itt Former Students Got Their Loans Forgiven

“The Small Business Administration met the requirement of releasing the one page form for loan forgiveness under the PPP within 24 days of the date of 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 for the first draw of PPP loans

Has Any Itt Former Students Got Their Loans Forgiven – For eligible borrowers, First Draw PPP loans are qualified to be forgiven. This is when the loan is disbursed within an 8 to 24-week timeframe.

  • This is also true for compensation and employees.
  • The loan proceeds are spent on payroll and other eligible expenses; and
  • At least 60% of profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans granted to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8to 24 week time period after loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
  • The loan funds could be used to cover payroll costs or other eligible expenses.
  • A minimum of 60% of the proceeds are used to pay for payroll expenses
  • When and how do I apply for loan forgiveness?

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

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