Sullivan University Student Loan Forgiveness

The U.S. Small Business Administration has issued a one-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. It also includes newly revised forms that comply with the current stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March that offered $284 billion in funding to small businesses in need of loans. The money was intended to offset the economic impact of the coronavirus pandemic. The law requires that the SBA provide simplified forms within the first 24 hours of the legislation’s signing into law. This is to simplify the process of applying for forgiveness. The legislation also contained conditions that encourage banks in the community to lend more, especially to minority-owned businesses who were unable to obtain loans in the past.

Sullivan University Student Loan Forgiveness

“The Small Business Administration met the requirements to release the one page form for the forgiveness of PPP loans within 24 hours of the date of enactment of 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 published more updated forms.”

Terms for forgiveness for the first draw of PPP loans

Sullivan University Student Loan Forgiveness – For borrowers who are eligible, First Draw PPP loans are qualified to be forgiven. This is when the loan payment is made within an 8 to 24 week period.

  • Pay and worker levels are maintained
  • The loan proceeds are used on payroll and other expenses that are eligible and
  • At least 60% of profits are used to pay for payroll expenses

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans granted to borrowers who are eligible can be granted total loan forgiveness if they do so during the 8– to 24-week time period after loan payment:

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the exact same way.
  • The proceeds of the loan could be used to pay expenses for payroll or other expenses that are eligible.
  • A minimum of 60% of the profits are spent on payroll costs
  • When and how do I apply for loan forgiveness?

Once all of the loan proceeds have been used, a borrower can apply for forgiveness. The borrower can request forgiveness anytime up until the date of maturity of the loan. If borrowers do not apply for forgiveness within 10 months of the end of the time period that was covered and the loan is not renewed, PPP loan payments can no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Download Sullivan University Student Loan Forgiveness

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