Physical Therapy Student Loan Forgiveness

Physical Therapy Student Loan Forgiveness

The U.S. Small Business Administration has released a 1-page form that makes it easier to apply for the cancellation of Paycheck Protection Program loans. The form is also updated with new forms that are in line with the current stimulus law. 

Congress approved the COVID-19 relief package last month and provided $284 billion of funding to small businesses in need of loans. The money was intended to mitigate the economic effects of the coronavirus pandemic. The law requires that the SBA release 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 that encourage community banks to make more loans specifically to minority-owned companies that had difficulty getting loans last year.

Physical Therapy Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs said that the Small Business Administration fulfilled the obligation to issue the PPP form, which is one page long, for loan forgiveness within 24 hours from 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 released updated forms.”

Terms for forgiveness for the initial draw of PPP loans

Physical Therapy Student 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:

  • Employee and compensation levels are ensured
  • The loan proceeds can be used to cover expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of the proceeds go to expenses for payroll

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans granted to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8to 24-week duration following the loan’s disbursement

  • The First Draw PPP loan requires that the employee and the compensation levels be maintained in an identical manner.
  • The loan proceeds are spent on payroll costs as well as other eligible expenses and
  • At least 60% of the profits are used for the cost of payroll
  • When and how do I apply for loan forgiveness

The borrower is eligible for forgiveness after the loan’s proceeds for which the borrower has applied for forgiveness have been used. The borrower can request forgiveness at any time prior to the maturity date of the loan. Borrowers who do not request forgiveness within 10 month after the date they will be able to repay the loan are able to receive loan payments from their PPP lender.

Download Physical Therapy Student Loan Forgiveness

Gallery of Physical Therapy Student Loan Forgiveness


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