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How Do I Apply For Loan Forgiveness

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How Does New Legislation Change The Ppp Loan Forgiveness Process

How to Apply for PPP Loan Forgiveness: Here’s What We Did

Legislation signed into law December 27, 2020, known as the Economic Aid Act, contained the following changes:

  • You now have the option to select a covered period which ends on a date that is at least 8 weeks following the date of loan disbursement, and not more than 24 weeks after the date of loan disbursement
  • Includes provisions that expand the list of allowable and forgivable expenses, which apply to existing PPP loans for which a borrower has not yet received forgiveness

The Paycheck Protection Program Flexibility Act, signed into law on June 5, 2020 contained the following requirements:

  • Your deferral period, during which payments on your loan will be deferred, will commence on the date on which your PPP loan was funded and end on the date on which the amount of forgiveness as determined under section 1106 of the CARES Act is remitted to the Bank or the date which is ten months after the last day of your covered period , if you have not applied for forgiveness by such date
  • You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
  • You can use up to 40% of funds for eligible nonpayroll costs, up from 25%

For additional details, please visit the SBA website.

Repaye Paye And Ibr Plan Forgiveness

To qualify for forgiveness, you must have participated in either the IBR, PAYE, or REPAYE and satisfied at least one of these conditions while in that plan:

  • Made the required income-based monthly payments under the plan
  • Made the required monthly payments specified in IBR or PAYE after you no longer had a partial financial hardship or stopped making IBR or PAYE payments
  • Made monthly payments under any repayment plan that was not less than the amount required under the 10-Year Standard Repayment Plan
  • Made monthly payments under the Standard Plan for the balance of your loans that were outstanding at the time you first selected IBR or PAYE
  • Made payments under one of the other IDR Plans , except income-sensitive repayment
  • Made the monthly payment amount under an alternative repayment plan after you failed to timely provide income documentation under REPAYE, but only if you later returned to the REPAYE program or entered another income-driven repayment program
  • Received an economic hardship deferment.

I Am Planning To Sell All Or Part Of My Interest In My Company Or Merge My Company With Another Company Or Sell Some Or All Of The Assets Of My Company To A Third Party Before My Ppp Loan Is Forgiven Or Paid In Full Do I Need To Notify Bank Of America Or The Sba

The SBA published a Procedural Notice on Changes of Ownership on October 2 which is available on the SBA website. This notice requires, in most situations, that the PPP lender provide confirmation to the SBA of your satisfaction of the requirements set forth in the Procedural Notice. Please contact your small business banker or call us at 866.457.4892 as soon as possible, but at least 10 business days before the proposed date of the sale or merger, so that we can provide assistance in setting up an escrow account if needed and answer other questions you may have as you go through this process.

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Promote The Open Application Cycle

Use our NHSC Three Loan Repayment Programs Stakeholder Toolkit to tell your audiences about up to $100,000 to pay off clinician student debt.

Licensed primary care clinicians in eligible disciplines can receive loan repayment assistance through the NHSC Loan Repayment Program .

In exchange for loan repayment, you must serve at least two years of service at an NHSC-approved site in a Health Professional Shortage Area .

Sole Proprietors Without Payroll Costs

The Complete Guide to PPP Loan Forgiveness: Part One ...

If you arenât running payroll, your PPP loan amount will be calculated using your gross or net income as reported on a 2019 or 2020 Schedule C.

To find your average monthly payroll expense, take your gross income and divide it by 12. Take your average monthly payroll expense and multiply it by 2.5. This will be your PPP loan amount.

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Filling Out The Ppp Forgiveness Application

Filling out your PPP forgiveness application will be very different depending on whether you have employees or not.

NOTE: If you are self employed and do not have W-2 employees read our article: Self Employed: How to Fill Out the PPP Loan Forgiveness Application Form

The most complicated part of filling out the forgiveness application is filling out the payroll sections. Well provide general information here but you may have questions unique to your situation. You may find answers in the SBA guidance, so be sure to review it. Also keep in mind this information does not replace professional accounting or legal advice. In fact, we strongly encourage you to work with your accountant before you submit your application for forgiveness.

Ppp Loan Forgiveness Calculation Form

Now that the calculations in the worksheets are completed, you should be able to fill out the rest of the application. Well go back to page 1 of the application.

First youll fill out some basic information about your business:

This information should be straightforward, and you will generally use the information you used to apply unless it has changed from the time you applied.

If this is your first PPP loan, check the box that says First Draw PPP Loan. If its your second PPP loan, check the box that says Second Draw PPP Loan.

Note: You must submit a forgiveness application for your first PPP loan before, or at the same time, as the second draw forgiveness application is submitted.

SBA PPP Loan Number: ________________________

This is the number assigned by the SBA to your loan. If you dont have it, ask your lender.

Lender PPP Loan Number: __________________________

Enter the loan number assigned to the PPP loan by the Lender. Again, if you dont know, ask your lender.

PPP Loan Amount: _____________________________

This is the amount you received.

PPP Loan Disbursement Date: _______________________

Again, this is when the funds were deposited in your bank account. If you received more than one disbursement, use the date of the first one.

Employees at Time of Loan Application: ___________

Enter the total number of employees at the time of the Borrowers PPP Loan Application.

Employees at Time of Forgiveness Application: ___________

Covered Period: _________ to __________

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Important Tips & Info

  • Include your PPP Loan number. While completing your application, if you do not know your PPP loan number, we can add it for you during our review process, or you can find it on your PPP Promissory Note. It is referred to as SBA Loan Number on the top portion of the document.
  • Include your NAICS code. The North American Industry Classification System is the standard used by Federal statistical agencies in classifying business establishments. For more information about NAICS codes. visit .
  • What happens after I submit my application? Once we receive your completed forgiveness application, which must include supporting documentation for loans exceeding $150,000, we will then review it internally to confirm your calculations. The bank is allowed up to 60 days for this review process. Once the banks review process is completed, your forgiveness application will then be submitted to the Small Business Administration for approval. The SBA has 90 days to review the application to make a determination on loan forgiveness.
  • Helpful tools to help you complete your application. The following online tools may be helpful in completing your Forgiveness Application:

Can Financial Aid Pay For Rent

How to Fill Out PPP Loan Forgiveness Application Form 3508S

If a students financial aid package amounts to more than tuition, fees and any other billable expenses, he or she typically receives a refund for the remaining amount. That money, typically disbursed at the beginning of the semester, can go toward rent, bills, food and other off-campus necessities.

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Other Options For Managing Student Loan Debt

As with any loan, making payments to avoid piling interest is the way to financial health. Setting up a plan, such as a budget that sets aside a certain amount of money every month and directs it into a separate savings account not linked to your main banking accounts, can help build up the funds necessary to finally pay off the student debt you owe.

What If I Work From Home Or Sublease Part Of My Space Can I Still Count That Rent For Forgiveness

No, the amount of loan forgiveness requested for nonpayroll costs may not include any amount attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, for home-based businesses, household expenses. The examples below illustrate this rule.

Example 1: A borrower rents an office building for $10,000 per month and sub-leases out a portion of the space to other businesses for $2,500 per month. Only $7,500 per month is eligible for loan forgiveness.

Example 2: A borrower has a mortgage on an office building it operates out of, and it leases out a portion of the space to other businesses. The portion of mortgage interest that is eligible for loan forgiveness is limited to the percent share of the fair market value of the space that is not leased out to other businesses. As an illustration, if the leased space represents 25% of the fair market value of the office building, then the borrower may only claim forgiveness on 75% of the mortgage interest.

Example 3: A borrower shares a rented space with another business. When determining the amount that is eligible for loan forgiveness, the borrower must prorate rent and utility payments in the same manner as on the borrowers 2019 tax filings, or if a new business, the borrowers expected 2020 tax filings.

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How Student Loan Forgiveness Works

Loan forgiveness basically means a debt being retired early, or “forgiven” in finance speak relieving the borrower of paying any more money back. Although theoretically any sort of student loan can be forgiven, the term and the issue of “student loan forgiveness” generally applies to U.S. government-issued/backed loans In other words, the widely publicized forgiveness programs do not apply to any privately issued loans, like those from a commercial bank or lenders like Sallie Mae even if those loans are earmarked for students.

In some cases, borrowers may be able to get their loans forgiven or canceled. Individuals who want their loans forgiven must apply and may have to continue making payments until their application is approved.

The prospect of seeing that debt evaporate may seem like a dream come true. In reality, though, not that many people end up being eligible. Requirements vary depending on the type of loan, but most offer forgiveness only for those employed in certain public service occupations. These include teachers, government employees, and members of the military and AmeriCorps.

And not all federal loans are eligible either . The eligibles that qualify for student loan forgiveness are primarily direct loans their predecessor, Stafford loans and Federal Family Education Loans .

There are also repayment plans offered to student loan borrowers that include the discharge or forgiveness of some of their debt.

Other Student Loan Forgiveness Programs

What Is Loan Forgiveness And How Do I Qualify?

There are a few additional niche student loan forgiveness or payment assistance programs you may qualify for through federal or state programs. Eligibility in these programs depends on your profession and where you work.

  • State-sponsored repayment assistance programs. Licensed teachers, nurses, doctors and lawyers in certain states may be able to take advantage of programs to assist with repaying debt. For example, the Mississippi Teacher Loan Repayment Program will pay up to $3,000 per year for a maximum of four years on undergraduate educational loans to teachers with a specific teaching license for each year of teaching full time in a particular geographical or subject area. Contact your states higher education department to find out if you qualify for a program.

  • Military student loan forgiveness and assistance. Military personnel in the Army, Navy, Air Force, National Guard and Coast Guard may qualify for their own loan forgiveness programs. In the National Guard, for example, qualifying soldiers and officers could receive up to $50,000 to pay off federal student loans through the Student Loan Repayment Program.

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    Prepare By Reviewing The Sba Application Forms

    • Our online loan forgiveness application is based on the SBA application forms
    • Visit the SBA or Treasury’s site to determine whether you must use Form 3508 or qualify to use either Form 3508 EZ or Form 3508S
    • Work through the applicable SBA Form, together with any supporting schedules and worksheets, and gather any necessary receipts or statements, along with proof of payment
    • Our online loan forgiveness application is based on the SBA application forms
    • Visit the SBA or Treasury’s site to determine whether you must use Form 3508 or qualify to use either Form 3508 EZ or Form 3508S
    • Work through the applicable SBA Form, together with any supporting schedules and worksheets, and gather any necessary receipts or statements, along with proof of payment

    How To Qualify To Receive An Automatic Student Loan Forgiveness

    Here are some ways to be eligible for automatic student loan forgiveness! Heres what to know. Student Loans Since Januarys election, President Joe Biden canceled $11.5 billion worth of student loans. It isnt easy to get student loans forgiven. Most students must apply for forgiveness of student loans or cancellations. Some circumstances may allow your

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    How To Submit Your Forgiveness Application

    Once you have completed the appropriate Forgiveness Application and have compiled all supporting documentation, you can submit your application using our secure link.

    Ready to submit your forgiveness application? Use the following link to securely submit your application. Submit My PPP Loan Forgiveness Application >

    Other Student Loan Aids

    How to Apply for PPP Loan Forgiveness Sole Proprietors and Independent Contractors

    Some private organizations offer to help veterans pay their loans. Some may provide aid in the form a huge one-time payment. Others may provide student loan repayment plans.

    RELATED: Student Loan Forgiveness for Military

    Student loan forgiveness for veterans is the least we can do for our countrymen who sacrifice their lives for us. It also encourages the next generation to serve their country through the military.

    Theres no better way to show thanks to our veterans than the continuous support for student loan forgiveness for them.

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    How To Maximize Chances At Idr Loan Forgiveness

    • Recertify your family size and annual income before the end of your 12-month repayment term
    • Confirm your recertification application has been received and all necessary documents are included
    • Make your monthly payments on time
    • Schedule auto-pay for your monthly student loan payments
    • Check your payment history to make sure your payments are being counted properly
    • Keep track of the number of qualifying payments you have made on your federal student loans.

    Also, before you consolidate, understand that consolidating from the FFEL program into the Direct Loan program resets the number of qualifying payments you’ve earned to zero.

    Stop Stressing.
    Hey, Iâm Tate.

    I’m a student loan lawyer that helps people like you with their federal and private student loans wherever they live.

    Borrower Defense To Repayment

    If you believe that the school you attended misled you or engaged in misconduct in violation of certain laws, the federal student loans you obtained to attend that school may be eligible for forgiveness, called Borrower Defense to Repayment. Learn more about the process, eligibility requirements and how you can apply.

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    Loan Forgiveness For Volunteering

    Volunteers with AmeriCorps may earn Segal AmeriCorps Education Awards which can be used to repay their federal student loans and state student loans. The education awards are worth up to the maximum Federal Pell Grant amount. There is a seven-year limit on using the education awards. Volunteers age 55 and older may transfer their education awards to their children or grandchildren.

    Volunteers with the Peace Corps may receive a transition payment of more than $10,000 after completion of two years of service.

    Both the education awards and transition payments may be used to repay federal student loans. These lump sum payments count toward up to 12 qualifying monthly payments for Public Service Loan Forgiveness.

    However, some borrowers may be better off making payments under an income-driven repayment plan. These payments can be as low as $0 and still count toward Public Service Loan Forgiveness. Volunteering full-time with AmeriCorps or Peace Corps qualifies as full-time employment in an eligible public service job.

    The U.S. Department of Education publishes a guide to repaying federal student loans for Peace Corps volunteers.

    Recipients of the Segal AmeriCorps Education Award may apply the award to their student loans through the My AmeriCorps portal. Choose Create Education Award Payment Request and then specify Loan Payment as the Payment Type.

    $10000 Student Loan Forgiveness Program

    Ive Used My PPP FundsShould I Apply for the Loan ...

    Since resuming office, President Biden has expressed support for canceling up to $10,000 per student in Federal loan debt. A recent cnet.com Some Democratic leaders are looking to go higher, to $50,000. Unlike the long-term forgiveness indicated in his other proposals, this student loan cancellation wouldnt be conditional on service.

    For some borrowers, $10,000 in forgiveness may seem like a small fraction. However, a recent report by the Department of Education found that about 15 million borrowers have federal student loan debt of $10,000 or less meaning around a third of federal student loan borrowers would see all of their federal debt erased.

    According to an online publication, Biden did forgive $1 billion in loans for students defrauded by for-profit institutions in March, but he has yet to present a plan for reducing the roughly $1.7 trillion in student debt across the board.

    Biden in April asked Education Secretary Miguel Cardona if he has the legal authority to cancel student debt. Under the American Rescue Plan Act, eligible Americans received a third stimulus check and plus-up payments where applicable, more money for unemployed individuals, thousands of more dollars for families with the new child tax credit, and changes to health care savings. But students who are in debt werent included in the bill.

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