Student Loan Parent Plus Forgiveness

Student Loan Parent Plus Forgiveness

The U.S. Small Business Administration has issued a one-page form which makes it simpler to request forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that are in line with the latest 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 legislation required that the SBA issue simplified forms within 24 hours after the bill’s passage into law. This was done to facilitate the application for forgiveness. Additionally, it included conditions that would encourage community banks to lend more specifically to minority-owned companies that had difficulty getting loans in the past.

Student Loan Parent Plus Forgiveness

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 24 days 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 issued more updated forms.”

First Draw PPP Conditions for loan forgiveness

Student Loan Parent Plus Forgiveness – For eligible borrowers, First Draw PPP loans are suitable to be forgiven. This applies if the loan disbursement occurs within an 8 to 24-week timeframe.

  • This is also true for pay and benefits for employees.
  • The loan proceeds are spent on payroll and other expenses that are eligible and
  • At least 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness Terms

Second Draw PPP loans to qualified borrowers can be eligible for loan repayment when the loan is paid within an 8to 24-week period.

  • The First Draw PPP loan requires that the employee and the compensation levels be maintained in an exact same way.
  • The loan funds could be used to pay for payroll costs or other eligible expenses.
  • A minimum of 60% of the profits are used for the cost of payroll
  • How do I apply for loan forgiveness and when to apply

Once all of the loan funds have been utilized, a borrower can apply to be granted forgiveness. Borrowers are able to apply for forgiveness anytime up to the maturity date of the loan. If they do not file for forgiveness within 10 months after the date of expiration of the time period that was covered and the loan is not renewed, PPP loan payments are no longer deferred, and the borrower will be required to make payment to their PPP lender.

Download Student Loan Parent Plus Forgiveness

Gallery of Student Loan Parent Plus Forgiveness