University Of Phoenix Loan Forgiveness Scam

The U.S. Small Business Administration has issued a one-page form that simplifies the application for forgiveness of Paycheck Protection Program loans. It also includes newly revised forms that comply with the latest stimulus legislation. 

The COVID-19 relief plan that Congress approved last month renewed the PPP with $284 billion of funds for small businesses that want forgiveness loans to help them to deal with the effects of economic collapse from the coronavirus outbreak. The package also mandated the SBA to issue streamlined forms within the first 24 hours after the legislation was approved by the lawmaker to streamline the process of applying for forgiveness, along with conditions designed to facilitate more loans from community banks, especially for minority-owned companies that struggled to get loans in the past.

University Of Phoenix Loan Forgiveness Scam

“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 the updated forms.”

Forgiveness terms in the first draw of PPP loans

University Of Phoenix Loan Forgiveness Scam – For borrowers who are eligible, First Draw PPP loans are suitable to be forgiven. This happens when the loan payment is made within an 8 to 24-week timeframe.

  • The levels of compensation and employee pay are maintained
  • The loan proceeds are used on payroll costs and other eligible expenses; and
  • A minimum of 60% of the proceeds are used to pay for payroll expenses

Second Draw PPP Conditions for loan forgiveness

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

  • Pay and worker levels are kept in the same way as required for the First Draw PPP loan
  • The loan proceeds are used on payroll and other eligible expenses; and
  • At least 60% of profits are used to pay for payroll expenses
  • What is the best time to apply for loan forgiveness?

After all loan’s proceeds have been used The borrower may apply to be forgiven. Borrowers can request forgiveness at any time up to the date of maturity. Borrowers who don’t request forgiveness within 10 month after the date they will be able to repay the loan are able to receive the loan payment from their PPP lender.

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