Student Loan Forgiveness For Disabled Spouse

Student Loan Forgiveness For Disabled Spouse

The U.S. Small Business Administration issued a one-page application form designed to make it easier for applicants to complete the process of applying for forgiveness of Paycheck Protection Program loans, together with revised and updated forms to comply with 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 forgiven loans to help cope with the economic fallout from the coronavirus outbreak. It also included a requirement that the SBA to issue streamlined forms within the first 24 hours after the legislation was adopted to make the process of applying for forgiveness, along with conditions designed to facilitate more loans from community banks, specifically for minority-owned businesses who had trouble getting loans in the past.

Student Loan Forgiveness For Disabled Spouse

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and wrote that the Small Business Administration fulfilled the requirement to issue the one-page form for PPP 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 issued new forms.”

First Draw PPP Loan forgiveness terms

Student Loan Forgiveness For Disabled Spouse – For those who qualify, First Draw PPP loans are qualified for loan forgiveness. This happens if the loan disbursement occurs within an 8 to 24-week period.

  • The levels of compensation and employee pay are kept at a constant level.
  • The proceeds from the loan may be used to pay the cost of payroll as well as other expenses that are eligible.
  • At least 60% of proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans granted to borrowers who meet the criteria are eligible for total loan forgiveness if they do so during the 8– to 24-week covered period following loan payment:

  • Employee and compensation levels are kept in the same way as required for the First Draw PPP loan
  • The loan proceeds are used on payroll costs and other expenses that are eligible and
  • At least 60% of profits are used for the cost of payroll
  • How to apply for loan forgiveness and when to apply

The borrower is eligible for forgiveness after all loan proceeds for which the borrower is requesting forgiveness have been utilized. Borrowers can request forgiveness at any time until the date at which the loan matures. If borrowers do not apply for forgiveness within 10 months after the last day of the time period that was covered the PPP loan payments are no longer deferred, and borrowers will begin making payment to their PPP lender.

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