Ssdi Student Loan Forgiveness

The U.S. Small Business Administration has released a single-page form aimed at simplifying the application process to forgive 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 of funds for small businesses that want forgiveness loans to help them deal with the financial fallout from the coronavirus pandemic. The package also mandated the SBA to issue simplified forms within the first 24 hours of the bill being approved by the lawmaker to streamline the application process for forgiveness. The legislation also contained conditions designed to facilitate more bank loans by community banks, particularly for minority-owned businesses who were unable to obtain loans last year.

Ssdi Student Loan Forgiveness

“The Small Business Administration met the requirement of releasing the single-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 issued new forms that were updated.”

Terms for forgiveness for the first draw of PPP loans

Ssdi Student Loan Forgiveness – First Draw PPP loans given to borrowers who meet the criteria are eligible for complete loan forgiveness if they do so during the 8- to 24-week covered period following the loan’s disbursement

  • Employee and compensation levels are maintained
  • The loan proceeds can be used to pay payroll costs or other expenses that are eligible.
  • A minimum of 60% of the proceeds are used to pay for payroll expenses

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans made to eligible borrowers qualify for complete loan forgiveness, if within the 8– to 24-week time period after the loan’s disbursement

  • Pay and worker levels are kept in the same way as is required for the First Draw PPP loan
  • The loan funds are used on payroll and other expenses that are eligible and
  • A minimum of 60% of the proceeds are used to pay for payroll expenses
  • When and how do I apply for loan forgiveness

A borrower can apply for forgiveness after the loan’s proceeds for which the borrower is requesting forgiveness have been used. Borrowers are able to apply for forgiveness anytime up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months of the end date of the loan are able to receive payment from their PPP lender.

Download Ssdi Student Loan Forgiveness

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