Stafford Student Loan Forgiveness Form

Stafford Student Loan Forgiveness Form

The U.S. Small Business Administration released a one-page form aimed at simplifying the process of applying for the forgiveness of Paycheck Protection Program loans, as well as newly revised and updated forms to comply with the latest stimulus legislation. 

The COVID-19 aid package Congress approved last month renewed the PPP with $284 billion of funds for small businesses that want forgiveness loans to help them cope with the economic fallout of the coronavirus epidemic. The law requires that the SBA provide simplified forms within 24 hours of the legislation’s signing into law. This was done to facilitate the application for forgiveness. The legislation also contained conditions that encourage community banks to lend more, especially to minority-owned businesses that had difficulty getting loans last year.

Stafford Student Loan Forgiveness Form

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

First Draw PPP Terms of loan forgiveness

Stafford Student Loan Forgiveness Form – First Draw PPP loans given to eligible borrowers qualify for total loan forgiveness within the 8 to 24 week period that follows loan disbursement:

  • This is also true for employee compensation and the.
  • The loan proceeds can be used to pay payroll costs or other expenses that are eligible.
  • A minimum of 60% of the proceeds go to expenses for payroll

Second Draw PPP Conditions for loan forgiveness

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

  • The First Draw PPP loan requires that the employee and the compensation levels are maintained in the exactly the same manner.
  • The loan funds are used on payroll costs and other expenses that are eligible and
  • A minimum of 60% of proceeds are used for the cost of payroll
  • How do I request loan forgiveness and the time to apply

When all of the loan’s proceeds have been used the borrower is eligible to be granted forgiveness. The borrower can request forgiveness at any time prior to the maturity date of the loan. If they do not file for forgiveness within 10 months of the date of expiration of the covered period, then PPP loan payments can no longer deferred, and borrowers must make monthly payments to their PPP lender.

Download Stafford Student Loan Forgiveness Form

Gallery of Stafford Student Loan Forgiveness Form


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