Nursing Student Loan Forgiveness Program

The U.S. Small Business Administration has issued a one-page form that makes it easier to apply for the cancellation of Paycheck Protection Program loans. The form is also updated with new forms to comply with the most recent stimulus law. 

Congress approved the COVID-19 relief plan last month that provided $284 billion of funding to small businesses that needed loans. This money was used to offset the economic impact of the coronavirus outbreak. The law required that the SBA release simplified forms within the first 24 hours of the signing into law. This is to make it easier to apply for forgiveness. The legislation also contained conditions that encourage banks in the community to lend more particularly to minority-owned businesses that had difficulty getting loans last year.

Nursing Student Loan Forgiveness Program

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

First Draw PPP Terms of loan forgiveness

Nursing Student Loan Forgiveness Program – First Draw PPP loans given to eligible borrowers qualify for total loan forgiveness during the 8- to 24-week period after the loan’s disbursement

  • This is also true for pay and benefits for employees.
  • The proceeds of the loan can be used to cover the cost of payroll as well as other expenses that are eligible.
  • Minimum 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 forgiveness when the loan is paid within an 8to 24 week time frame.

  • The First Draw PPP loan requires that the compensation and employee levels be maintained in an identical manner.
  • The loan proceeds are used on payroll and other expenses that are eligible and
  • A minimum of 60% of the profits go towards payroll costs
  • How to apply for loan forgiveness , and the time to apply

After all loan proceeds have been used, a borrower can apply for forgiveness. Borrowers may apply for forgiveness at any point up to the date at which the loan matures. Borrowers who don’t request forgiveness within 10 months of the expiration date of the loan are able to receive loan payments from their PPP lender.

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