Teacher Loan Forgiveness Form

The U.S. Small Business Administration has released a 1-page form that simplifies the application for the cancellation of Paycheck Protection Program loans. The form also contains newly updated forms to comply with the most recent stimulus legislation. 

Congress approved the COVID-19 relief package last month that provided $284 billion of funding to small businesses in need of loans. The funds were used to offset the economic impact of the coronavirus epidemic. It included a requirement for the SBA to issue streamlined forms within 24 hours after the legislation was adopted to make the procedure of applying for forgiveness, along with conditions meant to encourage more bank loans by community banks, especially for minority-owned businesses that struggled to get loans last year.

Teacher Loan Forgiveness Form

“The Small Business Administration met the requirements to release the one page form for PPP loan forgiveness by 24 days after the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars who is a partner of Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published the updated forms.”

First Draw PPP Terms of loan forgiveness

Teacher Loan Forgiveness Form – First Draw PPP loans granted to borrowers who are eligible can be granted total loan forgiveness during the 8- to 24-week period after the loan’s disbursement

  • Pay and worker levels are maintained
  • The proceeds from the loan may be used to pay for the cost of payroll as well as other eligible expenses.
  • At least 60% of profits go towards payroll costs

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans granted to borrowers who are eligible can be granted complete loan forgiveness, if within the 8to 24 week time period after loan payment:

  • The First Draw PPP loan requires that the employee and compensation levels be maintained in an exactly the same manner.
  • The loan proceeds are used on payroll and other eligible expenses; and
  • A minimum of 60% of the profits go towards payroll costs
  • How and when to apply for loan forgiveness

When all of the loan funds have been utilized, a borrower can apply to be forgiven. The borrower can request forgiveness at any time prior to the maturity date of the loan. If they do not file for forgiveness within 10 months after the end of the covered period the PPP loans are not deferred any longer, and the borrower will be required to make monthly payments to their PPP lender.

Download Teacher Loan Forgiveness Form

Gallery of Teacher Loan Forgiveness Form

Leave a Comment