My Great Lakes Student Loan Forgiveness

My Great Lakes Student Loan Forgiveness

The U.S. Small Business Administration has released a 1-page form which makes it simpler to request forgiveness of Paycheck Protection Program loans. It also includes newly revised forms that comply with the latest stimulus legislation. 

The COVID-19 relief plan that Congress adopted last month revived the PPP with $284 billion in funding for small businesses seeking forgivable loans to help them 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 legislation being approved by the lawmaker to streamline the procedure of applying for forgiveness, along with conditions designed to facilitate more loans from community banks, particularly for minority-owned companies that struggled to get loans last year.

My Great Lakes Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs wrote that the Small Business Administration fulfilled the requirement to publish the PPP form, which is one page long, for loan forgiveness within the first 24 hours of 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 issued the updated forms.”

Forgiveness terms for the first draw of PPP loans

My Great Lakes Student Loan Forgiveness – For eligible borrowers First Draw PPP loans can be eligible to be forgiven. This is when the loan payment is made within an 8 to 24-week timeframe.

  • The same goes for the compensation and employees.
  • The proceeds from the loan may be used to cover payroll costs or other expenses that are eligible.
  • At least 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness Terms

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

  • Employee and compensation levels are maintained in the same manner in accordance with the First Draw PPP loan
  • The loan proceeds are spent on payroll expenses as well as other eligible expenses and
  • A minimum of 60% of the funds go to payroll costs
  • How do I apply for loan forgiveness and when to apply

When all of the loan funds have been utilized the borrower is eligible for forgiveness. The borrower can apply for forgiveness at any point up to the date of maturity. If borrowers do not apply for forgiveness within 10 years of the last day of the covered period the PPP loan payments can no longer deferred, and borrowers will begin making loan payments to their PPP lender.

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