Student Loan Forgiveness Form 2018

The U.S. Small Business Administration has released a 1-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. It also includes newly revised forms that comply with the current stimulus law. 

The COVID-19 aid package Congress adopted last month revived the PPP with $284 billion in financing for small-scale businesses looking for forgiven loans to help cope with the economic fallout from the coronavirus pandemic. The law required 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 that would encourage community banks to lend more particularly to minority-owned businesses who were unable to obtain loans last year.

Student Loan Forgiveness Form 2018

“The Small Business Administration met the requirement to issue the one page form for the forgiveness of PPP loans within 24 hours 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.”

First Draw PPP Terms of loan forgiveness

Student Loan Forgiveness Form 2018 – For borrowers who are eligible, First Draw PPP loans are eligible to be forgiven. This is when the loan is disbursed within an 8 to 24 week period.

  • The same goes for the pay and benefits for employees.
  • The loan proceeds are used on payroll costs and other eligible expenses; and
  • A minimum of 60% of proceeds are used to pay for payroll expenses

Second Draw PPP Terms of Loan Forgiveness

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

  • The levels of compensation and employee pay are maintained in the same way in accordance with the First Draw PPP loan
  • The loan proceeds can be used to cover the cost of payroll as well as other eligible expenses.
  • A minimum of 60% of the funds go to expenses for payroll
  • How do I request loan forgiveness and when to apply

A borrower may apply for forgiveness once the loan’s proceeds for which the borrower wants forgiveness have been used. Borrowers can request forgiveness at any time until the date of maturity. Borrowers who do not request forgiveness within 10 month of the expiration date of the loan are able to receive loan payments from their PPP lender.

Download Student Loan Forgiveness Form 2018

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