I Need My Student Loans Forgiven

I Need My Student Loans Forgiven

The U.S. Small Business Administration has released a 1-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms that comply with the latest stimulus legislation. 

The COVID-19 relief plan that Congress adopted last month revived the PPP with $284 billion of financing for small-scale businesses looking for forgiven loans to help cope with the economic fallout of the coronavirus epidemic. The law requires that the SBA release simplified forms within the first 24 hours of the signing into law. This is to make it easier to apply for forgiveness. The legislation also contained conditions that encourage community banks to make more loans, especially to minority-owned businesses who had a difficult time getting loans last year.

I Need My Student Loans Forgiven

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs wrote that the Small Business Administration fulfilled the requirement to issue the PPP form, which is one page long, for loan forgiveness within 24 hours from the date of enactment in the Consolidated Appropriations Act, 20,21. The article was posted on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also published additional updated forms.”

Terms for forgiveness for the first draw of PPP loans

I Need My Student Loans Forgiven – First Draw PPP loans made to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8- to 24-week covered period following the loan’s disbursement

  • It’s the same for compensation and employees.
  • The loan proceeds are spent on payroll costs as well as other expenses eligible for reimbursement; and
  • Minimum 60% of profits go towards the cost of payroll

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans to eligible borrowers can be qualified for loan forgiveness when the loan is paid within an 8 24-week period.

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in the exactly the same manner.
  • The loan funds could be used to pay for the cost of payroll as well as other eligible expenses.
  • At least 60% of proceeds go to the cost of payroll
  • What is the best time to apply for loan forgiveness

A borrower may apply for forgiveness only after the loan’s proceeds for which the borrower is requesting forgiveness have been utilized. Borrowers are able to apply for forgiveness at any time prior until the date of maturity of the loan. Borrowers who do not request forgiveness within 10 month of the expiration date of the loan are able to receive payment from their PPP lender.

Download I Need My Student Loans Forgiven

Gallery of I Need My Student Loans Forgiven


Leave a Reply

Your email address will not be published.