Student Loan Forgiveness Form Pdf

The U.S. Small Business Administration released a one-page form that aims to simplify the process of applying for forgiveness of Paycheck Protection Program loans, along with newly updated and revised forms that meet the requirements of the most recent stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March and offered $284 billion in funding to small businesses that needed loans. The money was intended to mitigate the economic effects of the coronavirus epidemic. The law requires that the SBA release simplified forms within the first 24 hours after the bill’s passage into law. This was done to simplify the process of applying for forgiveness. Additionally, it included conditions that would encourage community banks to lend more specifically to minority-owned companies who had a difficult time getting loans in the past.

Student Loan Forgiveness Form Pdf

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

First Draw PPP Conditions for loan forgiveness

Student Loan Forgiveness Form Pdf – First Draw PPP loans given to borrowers who meet the criteria are eligible for complete loan forgiveness if they do so within the 8-to 24 week period that follows loan disbursement:

  • Employee and compensation levels are maintained
  • The proceeds of the loan can be used to pay expenses for payroll or other eligible expenses.
  • Minimum 60% of profits go towards expenses for payroll

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans to eligible customers are qualified for loan forgiveness if the loan is paid within an 8– to 24-week time frame.

  • Pay and worker levels are maintained in the same way in accordance with the First Draw PPP loan
  • The loan proceeds are spent on payroll expenses and other expenses that are eligible and
  • At least 60% of profits are used to pay for payroll expenses
  • How and when to apply for loan forgiveness?

Once all of the loan proceeds have been used The borrower may apply for forgiveness. Borrowers can request forgiveness at any time up to the date at which the loan matures. If they do not file for forgiveness within 10 months after the date of expiration of the covered period the PPP loan payments are no longer deferred, and borrowers will begin making monthly payments to their PPP lender.

Download Student Loan Forgiveness Form Pdf

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