Uncf Wear Your Crown With Confidence Loan Forgiveness Program

Uncf Wear Your Crown With Confidence Loan Forgiveness Program

The U.S. Small Business Administration released a one-page form aimed at simplifying the process of applying for forgiveness of Paycheck Protection Program loans, as well as newly updated and revised forms that meet the requirements of the most recent stimulus legislation. 

Congress approved the COVID-19 relief package in the month of March that offered $284 billion in funding to small businesses that needed loans. This money was used to reduce the economic burden of the coronavirus epidemic. The law required that the SBA provide simplified forms within 24 hours after the bill’s passage into law. This is to facilitate the application for forgiveness. Additionally, it included conditions that encourage banks in the community to lend more specifically to minority-owned companies who had a difficult time getting loans last year.

Uncf Wear Your Crown With Confidence Loan Forgiveness Program

Ed Zollars, a partner with Thomas, Zollars & Lynch CPAs and said that the Small Business Administration fulfilled the requirement to issue the PPP form, which is one page long, for loan forgiveness within the first 24 hours 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 published additional updated forms.”

First Draw PPP Loan forgiveness terms

Uncf Wear Your Crown With Confidence Loan Forgiveness Program – For eligible borrowers, First Draw PPP loans are eligible to be forgiven. This applies if the loan disbursement occurs within an 8 to 24-week period.

  • It’s the same for employee compensation and the.
  • The proceeds from the loan may be used to pay the cost of payroll as well as other expenses that are eligible.
  • At least 60% of the profits are spent on payroll costs

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans given 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 the compensation levels be maintained in the exact same way.
  • The loan proceeds are used on payroll as well as other eligible expenses and
  • A minimum of 60% of proceeds are used to pay for payroll expenses
  • How to apply for loan forgiveness , and when to apply

A borrower may apply for forgiveness only after all loan proceeds to which the borrower wants forgiveness have been used. Borrowers can request forgiveness at any time up to the date of maturity. If the borrower does not apply for forgiveness within 10 months after the last day of the time period that was covered, then PPP loans are no longer deferred and borrowers will begin making loan payments to their PPP lender.

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