Veteran Student Loan Forgiveness

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

The COVID-19 aid package Congress passed last month revived the PPP with $284 billion in funding for small businesses seeking forgiven loans to help deal with the financial fallout from the coronavirus outbreak. The law requires that the SBA release simplified forms within the first 24 hours of the signing into law. This was to facilitate the application for forgiveness. Additionally, it included conditions to encourage community banks to lend more specifically to minority-owned companies who had a difficult time getting loans last year.

Veteran Student Loan Forgiveness

“The Small Business Administration met the requirements to release 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 who is a partner of Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also published additional updated forms.”

First Draw PPP Terms of loan forgiveness

Veteran Student Loan Forgiveness – First Draw PPP loans granted to borrowers who are eligible can be granted full loan forgiveness if within the 8 to 24 week period that follows loan disbursement:

  • The levels of compensation and employee pay are kept at a constant level.
  • The loan proceeds are spent on payroll and other eligible expenses; and
  • A minimum of 60% of the profits are used to pay for payroll expenses

Second Draw PPP Loan Forgiveness Conditions

Second Draw PPP loans given to borrowers who are eligible can be granted total loan forgiveness if they do so during the 8to 24-week time period after loan disbursement:

  • The First Draw PPP loan requires that the employee and the compensation levels be maintained in the exactly the same manner.
  • The loan proceeds could be used to pay for the cost of payroll as well as other expenses that are eligible.
  • At least 60% of the proceeds are used for the cost of payroll
  • How do I apply for loan forgiveness , and when

When all of the loan funds have been utilized, a borrower can apply to be granted forgiveness. The borrower can apply for forgiveness at any point up to the date of maturity. Borrowers who do not request forgiveness within 10 months after the date they will be able to repay the loan are eligible to receive loan payments from their PPP lender.

Download Veteran Student Loan Forgiveness

Gallery of Veteran Student Loan Forgiveness

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