Student Loan Forgiveness Voicemail

The U.S. Small Business Administration has released a 1-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. The form is also updated with new forms that are in line with the most recent stimulus legislation. 

The COVID-19 aid package Congress passed last month revived the PPP with $284 billion in funding for small businesses seeking forgiveness loans to help them deal with the financial fallout of the coronavirus epidemic. The law requires that the SBA issue simplified forms within the first 24 hours of the signing into law. This was to make it easier to apply for forgiveness. The legislation also contained conditions that encourage community banks to lend more, especially to minority-owned businesses who were unable to obtain loans in the past.

Student Loan Forgiveness Voicemail

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

First Draw PPP Loan forgiveness terms

Student Loan Forgiveness Voicemail – First Draw PPP loans made to borrowers who are eligible can be granted total loan forgiveness within the 8-to 24 week period that follows the loan’s disbursement

  • The levels of compensation and employee pay are ensured
  • The loan proceeds can be used to pay the cost of payroll as well as other eligible expenses.
  • Minimum 60% of funds go to the cost of payroll

Second Draw PPP Loan Forgiveness Terms

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

  • The levels of compensation and employee pay are kept in the same way as required for the First Draw PPP loan
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of profits go towards expenses for payroll
  • How do I apply for loan forgiveness , and when

When all of the loan’s proceeds have been used the borrower is eligible to be forgiven. Borrowers may apply for forgiveness at any time until the loan’s maturity date. If the borrower does not apply for forgiveness within 10 months of the last day of the time period that was covered the PPP loans are no longer deferred and borrowers will begin making loan payments to their PPP lender.

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