Public Student Loan Forgiveness Form 2018

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

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

Public Student Loan Forgiveness Form 2018

“The Small Business Administration met the requirements to release the one-page form for the forgiveness of PPP loans within 24 days of the date of the 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 released the updated forms.”

First Draw PPP Terms of loan forgiveness

Public Student Loan Forgiveness Form 2018 – For those who qualify, First Draw PPP loans can be qualified for loan forgiveness. This happens when the loan is disbursed within an 8 to 24-week timeframe.

  • Employee and compensation levels are ensured
  • The loan funds are used on payroll as well as other expenses eligible for reimbursement; and
  • Minimum 60% of profits go towards expenses for payroll

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans to qualified borrowers can be eligible for loan repayment if the loan is paid within an 8 24-week time frame.

  • The First Draw PPP loan requires that the employee and the compensation levels be maintained in the exact same way.
  • The loan proceeds are spent on payroll and other expenses that are eligible and
  • At least 60% of profits go towards the cost of payroll
  • How and when to apply for loan forgiveness

A borrower may apply for forgiveness after all loan proceeds to which the borrower wants forgiveness have been used. The borrower can apply for forgiveness at any time up to the date at which the loan matures. If they do not file for forgiveness within 10 months after the date of expiration of the period covered the PPP loans are no longer deferred, and the borrower will be required to make loan payments to their PPP lender.

Download Public Student Loan Forgiveness Form 2018

Gallery of Public Student Loan Forgiveness Form 2018

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