Loan Forgiveness Programs For Counselors

Loan Forgiveness Programs For Counselors

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

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion in financing for small-scale businesses looking for forgivable loans to help them deal with the financial fallout from the coronavirus pandemic. The package also mandated the SBA to issue simplified forms within 24 days after the legislation was approved by the lawmaker to streamline the procedure of applying for forgiveness. It also included conditions designed to facilitate more loans from community banks, especially for minority-owned companies that had trouble getting loans last year.

Loan Forgiveness Programs For Counselors

“The Small Business Administration met the requirement to issue the single-page form for the forgiveness of PPP loans within 24 hours of 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 published new forms that were updated.”

Forgiveness terms in the initial draw of PPP loans

Loan Forgiveness Programs For Counselors – For eligible borrowers First Draw PPP loans can be qualified to forgive loans. This happens when the loan is disbursed within an 8 to 24-week timeframe.

  • This is also true for employee compensation and the.
  • The loan proceeds can be used to pay for the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans to eligible customers are qualified for loan forgiveness if the loan is paid within an 8 24 week period.

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the exact same way.
  • The proceeds of the loan could be used to pay for payroll costs or other eligible expenses.
  • At least 60% of the proceeds are used for the cost of payroll
  • How and when to apply for loan forgiveness

Once all of the loan funds have been utilized, a borrower can apply to be granted forgiveness. Borrowers may apply for forgiveness at any time until the date at which the loan matures. Borrowers who don’t request forgiveness within 10 months of the end date of the loan will be able to receive payment from their PPP lender.

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