Nurse Practitioner Loan Forgiveness

The U.S. Small Business Administration issued a one-page application form that aims to simplify the application process to forgive Paycheck Protection Program loans, together with updated and revised forms to comply with the latest stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March that offered $284 billion in funding to small businesses that needed loans. The money was intended to mitigate the economic effects of the coronavirus epidemic. The package also mandated the SBA to issue simplified forms within 24 hours after the legislation was approved by the lawmaker to streamline the process of applying for forgiveness. It also included conditions designed to facilitate more bank loans by community banks, especially for minority-owned businesses that were unable to obtain loans in the past.

Nurse Practitioner Loan Forgiveness

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

Forgiveness terms for the initial draw of PPP loans

Nurse Practitioner Loan Forgiveness – First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if within the 8-to 24-week period after the disbursement of loan:

  • The same goes for the compensation and employees.
  • The loan proceeds are spent on payroll costs as well as other expenses eligible for reimbursement; and
  • A minimum of 60% of the profits go towards payroll costs

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans made to borrowers who are eligible can be granted complete loan forgiveness, if within the 8to 24 week duration following the loan’s disbursement

  • The levels of compensation and employee pay are kept in the same way in accordance with the First Draw PPP loan
  • The proceeds of the loan could be used to pay the cost of payroll as well as other eligible expenses.
  • At least 60% of the proceeds are used to pay for payroll expenses
  • How do I request loan forgiveness and when

A borrower can apply for forgiveness after all loan proceeds to which the borrower is requesting forgiveness have been utilized. Borrowers may apply for forgiveness at any point up to the date of maturity. If borrowers do not apply for forgiveness within 10 months of the expiration date of the loan are eligible to receive payment from their PPP lender.

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