Teacher Loan Forgiveness Forbearance Form

The U.S. Small Business Administration has released a 1-page form that simplifies the application for forgiveness of Paycheck Protection Program loans. The form is also updated with new forms that are in line with the most recent stimulus law. 

The COVID-19 relief package that Congress passed last month revived the PPP with $284 billion in financing for small-scale businesses looking for forgiveness loans to help them to deal with the effects of economic collapse from the coronavirus outbreak. The law required that the SBA release simplified forms within 24 hours after the bill’s passage into law. This was to simplify the process of applying for forgiveness. The legislation also contained conditions that would encourage community banks to make more loans particularly to minority-owned businesses who were unable to obtain loans last year.

Teacher Loan Forgiveness Forbearance Form

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

Forgiveness terms for the initial draw of PPP loans

Teacher Loan Forgiveness Forbearance Form – First Draw PPP loans given to borrowers who meet the criteria are eligible for total loan forgiveness during the 8- to 24-week period after the disbursement of loan:

  • It’s the same for compensation and employees.
  • 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

Second Draw PPP Loan Forgiveness Terms

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

  • Employee and compensation levels are kept in the same way in accordance with the First Draw PPP loan
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • A minimum of 60% of the funds go to expenses for payroll
  • When and how do I apply for loan forgiveness

When all of the loan funds have been utilized the borrower is eligible for forgiveness. The borrower can request forgiveness any time up until the date of maturity of the loan. If the borrower does not apply for forgiveness within 10 months of the last day of the period covered the PPP loan payments can no longer deferred, and borrowers will begin making monthly payments to their PPP lender.

Download Teacher Loan Forgiveness Forbearance Form

Gallery of Teacher Loan Forgiveness Forbearance Form

Leave a Comment