Teacher Loan Forgiveness Applicaiton Form

Teacher Loan Forgiveness Applicaiton Form

The U.S. Small Business Administration has issued a one-page form which makes it simpler to request forgiveness of Paycheck Protection Program loans. It also includes newly revised forms that comply with the current stimulus legislation. 

Congress approved the COVID-19 relief plan last month, which offered $284 billion in funding to small businesses in need of loans. The money was intended to reduce the economic burden of the coronavirus outbreak. The legislation required that the SBA release simplified forms within the first 24 hours of the signing into law. This was done to facilitate the application for forgiveness. It also included conditions that would encourage community banks to lend more particularly to minority-owned businesses who were unable to obtain loans last year.

Teacher Loan Forgiveness Applicaiton Form

“The Small Business Administration met the requirements to release the one-page form for the forgiveness of PPP loans by 24 days after the date of the 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 released more updated forms.”

Forgiveness terms for the initial draw of PPP loans

Teacher Loan Forgiveness Applicaiton Form – For borrowers who are eligible, First Draw PPP loans can be eligible to be forgiven. This applies if the loan disbursement occurs within an 8 to 24-week timeframe.

  • It’s the same for compensation and employees.
  • The loan funds are used on payroll and other expenses that are eligible and
  • A minimum of 60% of profits are used for the cost of payroll

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans to qualified borrowers are eligible for loan forgiveness if the loan is paid within an 8to 24-week period.

  • The First Draw PPP loan requires that the employee and the compensation levels are maintained in the identical manner.
  • The loan proceeds can be used to cover payroll costs or other expenses that are eligible.
  • Minimum 60% of proceeds go to expenses for payroll
  • When and how do I apply for loan forgiveness?

When all of the loan proceeds have been used the borrower is eligible to be granted forgiveness. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If they do not file for forgiveness within 10 months of the end of the time period that was covered the PPP loan payments are not deferred any longer, and the borrower will be required to make loan payments to their PPP lender.

Download Teacher Loan Forgiveness Applicaiton Form

Gallery of Teacher Loan Forgiveness Applicaiton Form


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