Marketwatch Student Loan Forgiveness

The U.S. Small Business Administration has released a single-page form that aims to simplify the application process to forgive Paycheck Protection Program loans, as well as newly revised and updated forms to meet the requirements of the latest stimulus legislation. 

The COVID-19 aid package Congress approved last month renewed the PPP with $284 billion in funding for small businesses seeking forgiveness loans to help them to deal with the effects of economic collapse from the coronavirus outbreak. The law requires that the SBA release simplified forms within 24 hours of the signing into law. This was done to make it easier to apply for forgiveness. It also included conditions that would encourage community banks to lend more specifically to minority-owned companies that had difficulty getting loans in the past.

Marketwatch Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, wrote that the Small Business Administration fulfilled the requirement to issue the one-page form for PPP loan forgiveness within 24 hours of 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 published new forms.”

First Draw PPP Terms of loan forgiveness

Marketwatch Student Loan Forgiveness – First Draw PPP loans granted to borrowers who meet the criteria are eligible for total loan forgiveness during the 8- to 24-week covered period following the disbursement of loan:

  • It’s the same for employee compensation and the.
  • The loan proceeds can be used to cover payroll costs or other eligible expenses.
  • A minimum of 60% of the proceeds go to expenses for payroll

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans made to borrowers who are eligible can be granted complete loan forgiveness, if within the 8to 24-week time period after the loan’s disbursement

  • Employee and compensation levels are maintained in the same way in accordance with the First Draw PPP loan
  • The loan proceeds are spent on payroll and other expenses that are eligible and
  • Minimum 60% of proceeds go to the cost of payroll
  • When and how do I apply for loan forgiveness?

After all loan’s proceeds have been used The borrower may apply to be forgiven. Borrowers can apply for forgiveness anytime up to the maturity date of the loan. If the borrower does not apply for forgiveness within 10 months of the last day of the covered period the PPP loan payments are no longer deferred, and borrowers will begin making payment to their PPP lender.

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