Physician Loan Forgiveness

The U.S. Small Business Administration has released a form of one page which makes it simpler to request forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that comply with the most recent stimulus law. 

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion of financing for small-scale businesses looking for forgiven loans to help to deal with the effects of economic collapse from the coronavirus pandemic. The legislation required that the SBA provide simplified forms within 24 hours of the signing into law. This is to facilitate the application for forgiveness. It also included conditions that would encourage community banks to lend more specifically to minority-owned companies who had a difficult time getting loans in the past.

Physician Loan Forgiveness

“The Small Business Administration met the requirement of releasing 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 who is a partner of Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published new forms that were updated.”

First Draw PPP Terms of loan forgiveness

Physician Loan Forgiveness – For those who qualify First Draw PPP loans are suitable to be forgiven. This happens when the loan is disbursed within an 8 to 24-week period.

  • Pay and worker levels are maintained
  • The loan proceeds are spent on payroll as well as other expenses eligible for reimbursement; and
  • A minimum of 60% of profits are used for the cost of payroll

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans for eligible borrowers are qualified for loan forgiveness if the loan is paid within an 8to 24 week period.

  • Pay and worker levels are kept in the same way in accordance with the First Draw PPP loan
  • The loan funds could be used to cover payroll costs or other expenses that are eligible.
  • Minimum 60% of funds go to expenses for payroll
  • How and when to apply for loan forgiveness?

A borrower can apply for forgiveness after all loan proceeds for which the borrower has applied for forgiveness have been utilized. The borrower can apply for forgiveness at any time up to the date of maturity. Borrowers who don’t request forgiveness within 10 months of the end date of the loan are eligible to receive payment from their PPP lender.

Download Physician Loan Forgiveness

Gallery of Physician Loan Forgiveness

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