The U.S. Small Business Administration has issued a one-page form which makes it simpler to request forgiveness of Paycheck Protection Program loans. It also includes newly revised forms that comply with the most recent stimulus law.
Congress approved the COVID-19 relief package in the month of March and included $284 billion of financing to small businesses in need of loans. The money was intended to reduce the economic burden of the coronavirus epidemic. The law required that the SBA release simplified forms within 24 hours of the signing into law. This is to make it easier to apply for forgiveness. It also included conditions to encourage community banks to lend more particularly to minority-owned businesses that had difficulty getting loans in the past.
“The Small Business Administration met the requirement of releasing the one page form for PPP loan forgiveness within 24 days of the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published new forms that were updated.”
First Draw PPP Loan forgiveness terms
State Of Michigan Employee Student Loan Forgiveness – First Draw PPP loans granted to eligible borrowers qualify for full loan forgiveness if within the 8-to 24-week covered period following the disbursement of loan:
- It’s the same for compensation and employees.
- The loan proceeds are spent on payroll as well as other expenses eligible for reimbursement; and
- At least 60% of proceeds go to the cost of payroll
Second Draw PPP Loan Forgiveness Terms
Second Draw PPP loans given to borrowers who meet the criteria are eligible for total loan forgiveness if they do so during the 8to 24 week time period after loan payment:
- Pay and worker levels are kept in the same way as required for the First Draw PPP loan
- The loan proceeds could be used to cover payroll costs or other expenses that are eligible.
- At least 60% of proceeds are used for the cost of payroll
- How do I apply for loan forgiveness , and when
When all of the loan’s proceeds have been used The borrower may apply to be granted forgiveness. The borrower can apply for forgiveness at any time up to the date of maturity. If they do not file for forgiveness within 10 years of the date of expiration of the period covered, then PPP loan payments are no longer deferred and borrowers must make payment to their PPP lender.
Download State Of Michigan Employee Student Loan Forgiveness
Gallery of State Of Michigan Employee Student Loan Forgiveness
