Le Cordon Bleu Student Loan Forgiveness Scam

The U.S. Small Business Administration released a one-page form that aims to simplify the process of applying for the forgiveness of Paycheck Protection Program loans, along with newly revised and updated forms to comply with the most recent stimulus legislation. 

The COVID-19 relief plan that Congress adopted last month revived the PPP with $284 billion in financing for small-scale businesses looking for forgiven loans to help deal with the financial fallout of the coronavirus epidemic. It also included a requirement that the SBA to issue streamlined forms within 24 hours of the bill being adopted to make the process of applying for forgiveness. The legislation also contained conditions designed to facilitate more bank loans by community banks, particularly for minority-owned businesses who had trouble getting loans last year.

Le Cordon Bleu Student Loan Forgiveness Scam

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, stated that the Small Business Administration fulfilled the obligation to issue the one-page PPP form loan forgiveness within 24 days from the date of enactment under the Consolidated Appropriations Act, 20,21. This was published on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also released new forms that were updated.”

Terms for forgiveness for the initial draw of PPP loans

Le Cordon Bleu Student Loan Forgiveness Scam – For eligible borrowers First Draw PPP loans are suitable for loan forgiveness. This happens if the loan disbursement occurs within an 8 to 24-week timeframe.

  • This is also true for compensation and employees.
  • The proceeds of the loan can be used to cover expenses for payroll or other eligible expenses.
  • At least 60% of the profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness Terms

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

  • Pay and worker levels are maintained in the same way as required for the First Draw PPP loan
  • The loan proceeds are spent on payroll as well as other eligible expenses and
  • A minimum of 60% of the profits go towards the cost of payroll
  • How do I apply for loan forgiveness , and when

A borrower may apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been utilized. The borrower can apply for forgiveness at any point up to the loan’s maturity date. If borrowers do not apply for forgiveness within 10 month of the expiration date of the loan are able to receive loan payments from their PPP lender.

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