Texas College Loan Forgiveness

Texas College Loan Forgiveness

The U.S. Small Business Administration released a one-page form designed to make it easier for applicants to complete the process of applying to forgive Paycheck Protection Program loans, together with updated and revised forms to conform to the requirements of the most recent stimulus legislation. 

The COVID-19 aid package Congress passed last month revived the PPP with $284 billion in funds for small businesses that want forgiven loans to help deal with the financial fallout from the coronavirus outbreak. It also included a requirement that the SBA to issue streamlined forms within the first 24 hours after the legislation was signed into law to simplify the procedure of applying for forgiveness. It also included conditions meant to encourage more loans from community banks, particularly for minority-owned companies that were unable to obtain loans in the past.

Texas College Loan Forgiveness

“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 who is a partner of Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also issued the updated forms.”

First Draw PPP Terms of loan forgiveness

Texas College Loan Forgiveness – For borrowers who are eligible, First Draw PPP loans can be suitable for loan forgiveness. This happens when the loan payment is made within an 8 to 24 week period.

  • The levels of compensation and employee pay are ensured
  • The proceeds of the loan can be used to pay expenses for payroll or other eligible expenses.
  • Minimum 60% of profits go towards expenses for payroll

Second Draw PPP Loan Forgiveness Conditions

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

  • The levels of compensation and employee pay are maintained in the same way in accordance with the First Draw PPP loan
  • The loan proceeds could be used to pay payroll costs or other eligible expenses.
  • At least 60% of funds go to payroll costs
  • How and when to apply for loan forgiveness?

When all of the loan proceeds have been used, a borrower can apply to be granted forgiveness. The borrower can request forgiveness anytime up until the date of maturity of the loan. Borrowers who do not request forgiveness within 10 months of the end date of the loan will be able to receive the loan payment from their PPP lender.

Download Texas College Loan Forgiveness

Gallery of Texas College Loan Forgiveness


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