Uncf Student Loan Forgiveness

Uncf Student Loan Forgiveness

The U.S. Small Business Administration released a one-page form aimed at simplifying the application process for the forgiveness of Paycheck Protection Program loans, as well as newly revised and updated forms to comply with the latest stimulus legislation. 

Congress approved the COVID-19 relief package last month and offered $284 billion in funding to small businesses in need of loans. The funds were used to mitigate the economic effects of the coronavirus epidemic. The law required that the SBA provide simplified forms within the first 24 hours after the bill’s passage into law. This was done to facilitate the application for forgiveness. It also included conditions to encourage community banks to make more loans, especially to minority-owned businesses that had difficulty getting loans last year.

Uncf Student Loan Forgiveness

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs, wrote that the Small Business Administration fulfilled the obligation to issue the PPP form, which is one page long, for loan forgiveness within 24 days of the date of the enactment of the Consolidated Appropriations Act, 20,21. This was on the Current Federal Tax Developments blog of Kaplan Financial Education. “The agency also issued more updated forms.”

Terms for forgiveness for the first draw of PPP loans

Uncf Student Loan Forgiveness – First Draw PPP loans given to borrowers who meet the criteria are eligible for total loan forgiveness within the 8-to 24-week period after loan disbursement:

  • The levels of compensation and employee pay are maintained
  • The proceeds of the loan can be used to pay for payroll costs or other expenses that are eligible.
  • A minimum of 60% of the proceeds go to the cost of payroll

Second Draw PPP Terms of Loan Forgiveness

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

  • The First Draw PPP loan requires that the compensation and employee levels are maintained in the exact same way.
  • The loan proceeds are spent on payroll and other eligible expenses; and
  • Minimum 60% of funds go to expenses for payroll
  • How do I request loan forgiveness and when

After all loan proceeds have been used, a borrower can apply to be granted forgiveness. The borrower can request forgiveness at any time prior until the date of maturity of the loan. Borrowers who don’t request forgiveness within 10 month of the end date of the loan are able to receive payment from their PPP lender.

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