Teacher Loan Forgiveness Texas

The U.S. Small Business Administration has released a form of one page which makes it simpler to request forgiveness of Paycheck Protection Program loans. The form is also updated with new forms to comply with the latest stimulus law. 

The COVID-19 relief plan that Congress approved last month renewed the PPP with $284 billion of funding for small businesses seeking forgiven loans to help to deal with the effects of economic collapse from the coronavirus pandemic. It included a requirement for the SBA to issue streamlined forms within the first 24 hours of the legislation being adopted to make the application process for forgiveness, along with conditions designed to facilitate more loans from community banks, particularly for minority-owned companies that were unable to obtain loans last year.

Teacher Loan Forgiveness Texas

“The Small Business Administration met the requirement to issue 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 who is a partner of Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also issued new forms that were updated.”

First Draw PPP Loan forgiveness terms

Teacher Loan Forgiveness Texas – First Draw PPP loans granted to eligible borrowers qualify for complete loan forgiveness if they do so within the 8 to 24 week period that follows loan disbursement:

  • Employee and compensation levels are maintained
  • The loan funds are used on payroll expenses and other expenses that are eligible and
  • A minimum of 60% of the profits go towards the cost of payroll

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans for eligible customers are eligible for loan forgiveness if the loan is paid within an 8to 24 week time frame.

  • The First Draw PPP loan requires that the employee and the compensation levels are maintained in the identical manner.
  • The loan proceeds are used on payroll expenses and other expenses that are eligible and
  • At least 60% of the profits are used for the cost of payroll
  • How and when to apply for loan forgiveness

The borrower is eligible for forgiveness once all loan proceeds to which the borrower is requesting forgiveness have been utilized. 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 and the loan is not renewed, PPP loan payments are not deferred any longer, and the borrower will be required to make loan payments to their PPP lender.

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