Navient Student Loan Forgiveness Form

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

Congress approved the COVID-19 relief package last month and provided $284 billion of funding to small businesses in need of loans. This money was used to mitigate the economic effects of the coronavirus outbreak. The law required that the SBA issue simplified forms within 24 hours after the bill’s passage into law. This was to make it easier to apply for forgiveness. The legislation also contained conditions that encourage banks in the community to lend more specifically to minority-owned companies who had a difficult time getting loans last year.

Navient Student Loan Forgiveness Form

“The Small Business Administration met the requirements to release the one page form for the forgiveness of PPP loans by 24 days after the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published new forms.”

Forgiveness terms for the initial draw of PPP loans

Navient Student Loan Forgiveness Form – For those who qualify First Draw PPP loans are eligible for loan forgiveness. This is if the loan disbursement occurs within an 8 to 24 week period.

  • Pay and worker levels are maintained
  • The proceeds from the loan may be used to pay for payroll costs or other expenses that are eligible.
  • At least 60% of the proceeds are used to pay for payroll expenses

Second Draw PPP Loan forgiveness terms

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

  • The First Draw PPP loan requires that the employee and the compensation levels are maintained in the exactly the same manner.
  • The loan proceeds could be used to pay expenses for payroll or other expenses that are eligible.
  • At least 60% of profits are used to pay for payroll expenses
  • What is the best time to apply for loan forgiveness?

Once all of the loan proceeds have been used The borrower may apply for forgiveness. The borrower can request forgiveness any time 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 period covered and the loan is not renewed, PPP loans are no longer deferred and borrowers must make loan payments to their PPP lender.

Download Navient Student Loan Forgiveness Form

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