Public Student Loan Forgiveness Form 2022

The U.S. Small Business Administration issued a one-page application 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. 

The COVID-19 relief plan that Congress passed last month revived the PPP with $284 billion in funding for small businesses seeking forgiveness loans to help them to deal with the effects of economic collapse from the coronavirus pandemic. It also included a requirement that the SBA to issue simplified forms within the first 24 hours of the legislation being signed into law to simplify the application process for forgiveness. It also included conditions designed to facilitate more loans from community banks, specifically for minority-owned businesses who had trouble getting loans in the past.

Public Student Loan Forgiveness Form 2022

“The Small Business Administration met the requirement to issue the one page form for the forgiveness of PPP loans within 24 hours 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 issued new forms.”

Forgiveness terms in the initial draw of PPP loans

Public Student Loan Forgiveness Form 2022 – First Draw PPP loans granted to eligible borrowers qualify for total loan forgiveness during the 8- to 24-week covered period following the loan’s disbursement

  • The levels of compensation and employee pay are kept at a constant level.
  • The loan proceeds are used on payroll costs and other eligible expenses; and
  • A minimum of 60% of proceeds are spent on payroll costs

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans given to borrowers who are eligible can be granted complete loan forgiveness, if within the 8– to 24-week time period after loan payment:

  • Pay and worker levels are maintained in the same manner as is required for the First Draw PPP loan
  • The loan proceeds are spent on payroll as well as other eligible expenses and
  • A minimum of 60% of the funds go to payroll costs
  • How do I request loan forgiveness and when

The borrower is eligible for forgiveness only after all loan proceeds for which the borrower has applied for forgiveness have been used. Borrowers can request forgiveness at any point up to the date of maturity. Borrowers who do not request forgiveness within 10 months of the expiration date of the loan will be able to receive loan payments from their PPP lender.

Download Public Student Loan Forgiveness Form 2022

Gallery of Public Student Loan Forgiveness Form 2022

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