Student Loan Forgiveness Form 982

Student Loan Forgiveness Form 982

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

The COVID-19 relief package that Congress adopted last month revived the PPP with $284 billion of funds for small businesses that want forgivable loans to help them deal with the financial fallout from the coronavirus pandemic. It included a requirement for the SBA to issue simplified forms within 24 days of the bill being approved by the lawmaker to streamline the process of applying for forgiveness. It also included conditions that aim to increase the number of loans from community banks, specifically for minority-owned companies that were unable to obtain loans last year.

Student Loan Forgiveness Form 982

“The Small Business Administration met the requirement of releasing the single-page form for PPP loan forgiveness within 24 hours of the date of enactment 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 released the updated forms.”

First Draw PPP Loan forgiveness terms

Student Loan Forgiveness Form 982 – First Draw PPP loans given to borrowers who are eligible can be granted complete loan forgiveness if they do so within the 8-to 24 week period that follows the loan’s disbursement

  • The same goes for the pay and benefits for employees.
  • The loan proceeds are used on payroll expenses as well as other expenses eligible for reimbursement; and
  • At least 60% of proceeds are used to pay for payroll expenses

Second Draw PPP Conditions for loan forgiveness

Second Draw PPP loans for eligible customers are eligible for loan repayment when the loan is paid within an 8to 24 week period.

  • Pay and worker levels are maintained in the same manner as is required for the First Draw PPP loan
  • The proceeds of the loan can be used to pay for expenses for payroll or other eligible expenses.
  • A minimum of 60% of the profits are spent on payroll costs
  • How do I apply for loan forgiveness and when

Once all of the loan proceeds have been used, a borrower can apply for forgiveness. Borrowers can request forgiveness at any time until the date at which the loan matures. Borrowers who do not request forgiveness within 10 month of the end date of the loan will be able to receive the loan payment from their PPP lender.

Download Student Loan Forgiveness Form 982

Gallery of Student Loan Forgiveness Form 982


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