How Do I Get Loan Forgiveness From Devry

How Do I Get Loan Forgiveness From Devry

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

Congress approved the COVID-19 relief plan last month, which provided $284 billion of funding to small businesses that needed loans. The funds were used to reduce the economic burden of the coronavirus pandemic. The package also mandated the SBA to issue streamlined forms within 24 hours of the bill being adopted to make the process of applying for forgiveness, along with conditions meant to encourage more loans from community banks, specifically for minority-owned businesses who were unable to obtain loans last year.

How Do I Get Loan Forgiveness From Devry

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

First Draw PPP Loan forgiveness terms

How Do I Get Loan Forgiveness From Devry – First Draw PPP loans made to borrowers who are eligible can be granted complete loan forgiveness if they do so within the 8 to 24 week period that follows the loan’s disbursement

  • The levels of compensation and employee pay are kept at a constant level.
  • The loan proceeds are spent on payroll and other eligible expenses; and
  • At least 60% of proceeds go to the cost of payroll

Second Draw PPP Loan Forgiveness Terms

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

  • The levels of compensation and employee pay are maintained in the same manner in accordance with the First Draw PPP loan
  • The loan proceeds could be used to cover the cost of payroll as well as other expenses that are eligible.
  • A minimum of 60% of the proceeds go to expenses for payroll
  • How do I apply for loan forgiveness and the time to apply

Once all of the loan funds have been utilized the borrower is eligible to be forgiven. Borrowers can request forgiveness at any point up to the date at which the loan matures. If they do not file for forgiveness within 10 months of the end of the covered period and the loan is not renewed, PPP loan payments are no longer deferred, and the borrower will be required to make payment to their PPP lender.

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