Student Loan Forgiveness Website

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

The COVID-19 relief package that Congress passed last month revived the PPP with $284 billion of funding for small businesses seeking forgiven loans to help cope with the economic fallout from the coronavirus pandemic. The package also mandated the SBA to issue streamlined forms within 24 hours after the legislation was approved by the lawmaker to streamline the procedure of applying for forgiveness, along with conditions that aim to increase the number of bank loans by community banks, particularly for minority-owned businesses that were unable to obtain loans in the past.

Student Loan Forgiveness Website

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

First Draw PPP Loan forgiveness terms

Student Loan Forgiveness Website – First Draw PPP loans made to borrowers who are eligible can be granted complete loan forgiveness if they do so within the 8-to 24-week period after the disbursement of loan:

  • The levels of compensation and employee pay are maintained
  • 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 to eligible borrowers are eligible for loan forgiveness when the loan is paid within an 8 24 week time frame.

  • Pay and worker levels are maintained in the same manner in accordance with the First Draw PPP loan
  • The loan proceeds could be used to cover the cost of payroll as well as other eligible expenses.
  • At least 60% of proceeds are used to pay for payroll expenses
  • How and when to apply for loan forgiveness

After all loan’s proceeds have been used, a borrower can apply to be forgiven. Borrowers can request forgiveness at any time until the date at which the loan matures. If borrowers do not apply for 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 Website

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