The U.S. Small Business Administration has issued a one-page form that makes it easier to apply for forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that comply with the current stimulus legislation.
The COVID-19 relief plan that Congress adopted last month revived the PPP with $284 billion of funding for small businesses seeking forgiven loans to help deal with the financial fallout of the coronavirus epidemic. The law requires that the SBA issue simplified forms within 24 hours after the bill’s passage into law. This is to simplify the process of applying for forgiveness. The legislation also contained conditions to encourage community banks to lend more particularly to minority-owned businesses who were unable to obtain loans last year.
“The Small Business Administration met the requirement to issue the single-page form for the forgiveness of PPP loans by 24 days after the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published updated forms.”
Terms for forgiveness for the first draw of PPP loans
Sallie Mae Student Loan Forgiveness – For eligible borrowers First Draw PPP loans can be suitable for loan forgiveness. This is when the loan is disbursed within an 8 to 24-week period.
- Pay and worker levels are kept at a constant level.
- The loan proceeds are used on payroll costs and other eligible expenses; and
- A minimum of 60% of the proceeds are used for the cost of payroll
Second Draw PPP Loan Forgiveness The terms
Second Draw PPP loans to qualified customers are eligible for loan repayment when the loan is repaid within an 8– 24-week time frame.
- Pay and worker levels are maintained in the same way as required for the First Draw PPP loan
- The loan funds can be used to pay the cost of payroll as well as other eligible expenses.
- A minimum of 60% of the profits are used to pay for payroll expenses
- How do I apply for loan forgiveness , and the time to apply
When all of the loan funds have been utilized The borrower may apply to be granted forgiveness. Borrowers are able to 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 after the end of the covered period and the loan is not renewed, PPP loans are no longer deferred and borrowers must make payment to their PPP lender.
Download Sallie Mae Student Loan Forgiveness
Gallery of Sallie Mae Student Loan Forgiveness
