Teacher Loan Forgiveness Application Form

Teacher Loan Forgiveness Application Form

The U.S. Small Business Administration has issued a one-page form that makes it easier to apply for 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 that offered $284 billion in funding to small businesses in need of loans. This money was used to mitigate the economic effects of the coronavirus pandemic. It also included a requirement that the SBA to issue streamlined forms within 24 days of the bill being adopted to make the application process for forgiveness. The legislation also contained conditions that aim to increase the number of loans from community banks, specifically for minority-owned companies that had trouble getting loans last year.

Teacher Loan Forgiveness Application Form

“The Small Business Administration met the requirement of releasing the one-page form for the forgiveness of PPP loans within 24 days of 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 published new forms that were updated.”

First Draw PPP Terms of loan forgiveness

Teacher Loan Forgiveness Application Form – First Draw PPP loans given to borrowers who are eligible can be granted full loan forgiveness if within the 8 to 24-week covered period following the loan’s disbursement

  • It’s the same for compensation and employees.
  • The proceeds from the loan may be used to pay payroll costs or other eligible expenses.
  • A minimum of 60% of the funds go to expenses for payroll

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans to eligible borrowers can be eligible for loan forgiveness when the loan is repaid within an 8 24 week period.

  • The First Draw PPP loan requires that the employee and compensation levels be maintained in an identical manner.
  • The loan proceeds can be used to pay expenses for payroll or other expenses that are eligible.
  • Minimum 60% of profits go towards payroll costs
  • How and when to apply for loan forgiveness

Once all of the loan proceeds have been used, a borrower can apply to be forgiven. Borrowers are able to apply for forgiveness at any time prior to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the time period that was covered the PPP loan payments can not deferred any longer, and the borrower will be required to make loan payments to their PPP lender.

Download Teacher Loan Forgiveness Application Form

Gallery of Teacher Loan Forgiveness Application Form