Quebec Student Loan Forgiveness

The U.S. Small Business Administration has issued a one-page form which makes it simpler to request the cancellation of Paycheck Protection Program loans. It also includes newly revised forms to comply with the current stimulus law. 

The COVID-19 relief package that Congress passed last month revived the PPP with $284 billion in funds for small businesses that want forgivable loans to help them to deal with the effects of economic collapse from the coronavirus outbreak. The law required that the SBA provide simplified forms within the first 24 hours of the legislation’s signing into law. This was done to facilitate the application for forgiveness. Additionally, it included conditions to encourage community banks to make more loans particularly to minority-owned businesses who were unable to obtain loans in the past.

Quebec Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, wrote that the Small Business Administration fulfilled the requirement to issue the one-page PPP form loan forgiveness within 24 hours from the date of the enactment of the Consolidated Appropriations Act, 20,21. The article was posted on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also published new forms that were updated.”

Terms for forgiveness for the initial draw of PPP loans

Quebec Student Loan Forgiveness – First Draw PPP loans granted to borrowers who meet the criteria are eligible for complete loan forgiveness if they do so within the 8 to 24 week period that follows the loan’s disbursement

  • Employee and compensation levels are ensured
  • The loan proceeds are spent on payroll and other eligible expenses; and
  • At least 60% of proceeds are used to pay for payroll expenses

Second Draw PPP Terms of Loan Forgiveness

Second Draw PPP loans made to borrowers who are eligible can be granted full loan forgiveness if during the 8to 24 week time period after the loan’s disbursement

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
  • The loan funds are used on payroll as well as other eligible expenses and
  • A minimum of 60% of the profits go towards expenses for payroll
  • How do I apply for loan forgiveness and when to apply

Once all of the loan proceeds have been used, a borrower can apply to be forgiven. Borrowers can apply for forgiveness at any time prior until the date of maturity of the loan. If they do not file for forgiveness within 10 months of the end of the period covered the PPP loan payments are not deferred any longer, and the borrower will be required to make loan payments to their PPP lender.

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