Mefa Loan Forgiveness

Mefa Loan Forgiveness

The U.S. Small Business Administration has issued a one-page form which makes it simpler to request the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms that comply with the current stimulus law. 

Congress approved the COVID-19 relief package last month and offered $284 billion in funding to small businesses that needed loans. The funds were used to offset the economic impact of the coronavirus epidemic. The law required 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. Additionally, it included conditions that encourage community banks to lend more particularly to minority-owned businesses who had a difficult time getting loans last year.

Mefa Loan Forgiveness

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

First Draw PPP Terms of loan forgiveness

Mefa Loan Forgiveness – For eligible borrowers First Draw PPP loans can be qualified for loan forgiveness. This happens when the loan payment is made within an 8 to 24-week timeframe.

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

Second Draw PPP Conditions for loan forgiveness

Second Draw PPP loans made to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8to 24-week covered period following the loan’s disbursement

  • The levels of compensation and employee pay are maintained in the same manner in accordance with the First Draw PPP loan
  • The loan funds could be used to cover expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of the proceeds are spent on payroll costs
  • When and how do I apply for loan forgiveness?

A borrower may apply for forgiveness once all loan proceeds to which the borrower wants forgiveness have been utilized. Borrowers are able to apply for forgiveness at any time prior until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 month of the end date of the loan will be able to receive loan payments from their PPP lender.

Download Mefa Loan Forgiveness

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