Nurse Faculty Loan Forgiveness Program

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

Congress approved the COVID-19 relief plan last month that included $284 billion of financing to small businesses that needed loans. The funds were used to offset the economic impact of the coronavirus pandemic. The package also mandated the SBA to issue simplified forms within the first 24 hours after the legislation was approved by the lawmaker to streamline the application process for forgiveness. The legislation also contained conditions that aim to increase the number of bank loans by community banks, especially for minority-owned businesses who were unable to obtain loans in the past.

Nurse Faculty Loan Forgiveness Program

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

Forgiveness terms in the initial draw of PPP loans

Nurse Faculty Loan Forgiveness Program – For eligible borrowers, First Draw PPP loans are suitable for loan forgiveness. This is if the loan disbursement occurs within an 8 to 24 week period.

  • Employee and compensation levels are ensured
  • The proceeds from the loan may be used to pay for expenses for payroll or other expenses that are eligible.
  • At least 60% of profits go towards expenses for payroll

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans for eligible borrowers are eligible for loan repayment when the loan is paid within an 8 24-week period.

  • Pay and worker levels are kept in the same way as is required for the First Draw PPP loan
  • The loan funds could be used to cover expenses for payroll or other eligible expenses.
  • At least 60% of proceeds go to expenses for payroll
  • How do I apply for loan forgiveness , and when

After all loan funds have been utilized, a borrower can apply for forgiveness. Borrowers may apply for forgiveness at any time until the date of maturity. Borrowers who don’t request forgiveness within 10 months of the expiration date of the loan are eligible to receive loan payments from their PPP lender.

Download Nurse Faculty Loan Forgiveness Program

Gallery of Nurse Faculty Loan Forgiveness Program

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