Veteran Loan Forgiveness Program

Veteran Loan Forgiveness Program

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

Congress approved the COVID-19 relief package last month, which included $284 billion of financing to small businesses that needed loans. The funds were used to offset the economic impact of the coronavirus epidemic. The legislation required that the SBA issue simplified forms within the first 24 hours of the signing into law. This was to simplify the process of applying for forgiveness. The legislation also contained conditions to encourage community banks to make more loans, especially to minority-owned businesses that had difficulty getting loans in the past.

Veteran Loan Forgiveness Program

“The Small Business Administration met the requirement of releasing the one-page form for the forgiveness of PPP loans within 24 hours of the date of enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas, Zollars & Lynch CPAs, on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published additional updated forms.”

Terms for forgiveness for the first draw of PPP loans

Veteran Loan Forgiveness Program – First Draw PPP loans given to borrowers who meet the criteria are eligible for total loan forgiveness during the 8- to 24 week period that follows loan disbursement:

  • It’s the same for compensation and employees.
  • The loan funds are used on payroll costs and other expenses that are eligible and
  • A minimum of 60% of the proceeds go to expenses for payroll

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans given to eligible borrowers qualify for full loan forgiveness if during the 8to 24 week time period after loan payment:

  • Pay and worker levels are maintained in the same way in accordance with the First Draw PPP loan
  • The proceeds of the loan could be used to pay for payroll costs or other expenses that are eligible.
  • A minimum of 60% of the proceeds are used to pay for payroll expenses
  • How do I apply for loan forgiveness , and when to apply

After all loan’s proceeds have been used The borrower may apply for forgiveness. Borrowers can request forgiveness at any point up to the loan’s maturity date. If borrowers do not apply for forgiveness within 10 months of the expiration date of the loan are able to receive the loan payment from their PPP lender.

Download Veteran Loan Forgiveness Program

Gallery of Veteran Loan Forgiveness Program


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