Nova Scotia Student Loan Debt Forgiveness

Nova Scotia Student Loan Debt Forgiveness

The U.S. Small Business Administration has released a form of one page that simplifies the application for forgiveness of Paycheck Protection Program loans. The form also contains newly updated forms that are in line with the most recent stimulus law. 

Congress approved the COVID-19 relief plan last month, which offered $284 billion in funding for small-scale businesses who needed loans. The funds were used to offset the economic impact of the coronavirus pandemic. The law required that the SBA issue simplified forms within the first 24 hours of the signing into law. This was done to facilitate the application for forgiveness. Additionally, it included conditions to encourage community banks to make more loans specifically to minority-owned companies that had difficulty getting loans last year.

Nova Scotia Student Loan Debt Forgiveness

“The Small Business Administration met the requirements to release the one-page form for loan forgiveness under the PPP within 24 days of the date of 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 issued the updated forms.”

First Draw PPP Loan forgiveness terms

Nova Scotia Student Loan Debt Forgiveness – For borrowers who are eligible First Draw PPP loans are eligible to be forgiven. This is when the loan is disbursed within an 8 to 24-week timeframe.

  • The same goes for the pay and benefits for employees.
  • The loan proceeds can be used to pay for payroll costs or other expenses that are eligible.
  • At least 60% of proceeds go to the cost of payroll

Second Draw PPP Loan forgiveness terms

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

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an identical manner.
  • The loan funds can be used to cover payroll costs or other expenses that are eligible.
  • A minimum of 60% of the profits are used to pay for payroll expenses
  • How and when to apply for loan forgiveness?

After all loan funds have been utilized the borrower is eligible to be granted forgiveness. The borrower can apply for forgiveness at any time up to the date of maturity. If borrowers do not apply for forgiveness within 10 months after the end of the period covered the PPP loans are not deferred any longer, and borrowers must make payment to their PPP lender.

Download Nova Scotia Student Loan Debt Forgiveness

Gallery of Nova Scotia Student Loan Debt Forgiveness


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