PPP loan forgiveness is available to anyone with a Bank Account and a Valid Job. This program allows you to apply for financial assistance to pay off your unsecured debts. You can choose from various PPP loan forgiveness programs. For example, you may receive help paying your small to mid-sized medical expenses, high-interest credit card bills, and even educational expenses such as tuition, fees, and books. PPP loan is a government-assisted service that provides free financial advice to people who qualify. In addition, many organizations offer free PPP advice, including the Canadian Bankruptcy Institute, the Consumer Credit Counselling Society, and the Canadian insolvency Society.
PPP is an essential aspect of our monthly budget. Payment Protection Insurance helps the lender compensate the borrower for any sudden loss of income because they have a regular job and pays the loan installments regularly. In non-payment, the PPI will be added to the unpaid loan amount, and the borrower will receive the total amount.
PPP loan forgiveness application form
If you are in one of these situations, you may get a PPP loan forgiveness application form from your bank or other financial institution. Then, you need to fill in the relevant details asked by them.
name, birth date, address, contact details, and salary information.
But, there is an eligibility criterion that needs to be fulfilled before the application is approved.
- Salary cheque: The most common eligibility requirement is that the borrower should be earning at least the minimum earning capacity in one of the designated periods. That means that if you have not received a single salary cheque in the past year, then you cannot be eligible for the PPP loan forgiveness.
- Self-employed: The second requirement is that the borrower must be self-employed. This will be checked by checking your tax returns and records. If this is the case, you may be asked to undergo credit checks and interviews before completing the application.
- Age: The third requirement is that borrowers should be aged at least 18 years. This requirement is common among self-employed individuals, as the PPP allows them to be covered under the scheme even if they are below 18 years. Self-employed borrowers also enjoy the flexibility of paying the loan in two installments instead of the usual three that most loans stipulate.
Maturity date : The maturity date is another important feature of the scheme. This date is essential as it decides whether the borrower is eligible for the scheme or not. The first maturity date is when the PPP begins. After the first maturity date, the loans made on behalf of the borrower become fully repaid, and he is eligible for the scheme. For this reason, borrowers who have loans made before the maturity date are not entitled to PPP loan forgiveness.
Gross Income: Another essential condition for eligibility is the gross income. This is calculated to find out the borrower’s total income, including all employment-based benefits. The borrower’s gross income should be higher than the combined gross income of the parents of the child or children who will receive the PPP loan forgiveness amount. The PPP loan forgiveness amount is higher for such borrowers.
For the second stimulus bill, borrowers can make PPP loan repayments interest-only or choose the longer repayment term. Interest-only PPP plans are available for up to three years, while the more extended repayment periods are available up to twenty-five years. In addition, borrowers can choose to pay the PPP loan off over a more extended period of time or up to twenty-five years. The borrower will cover the total cost of the PPP loans made during the specified period of the loan repayment.
Different terms for different types of borrowers.
The two basic types are the refundable and the non-refundable types.
- Refundable borrowers are those who repay the loan early, within the grace period or the timeframe specified in the scheme. Examples of these borrowers include retired personnel, enrolled students but are not yet entitled to their loans, and those covered under family policies or worker’s compensation plans.
- Non-refundable borrowers are those who do not repay the loan and are punished for this by imprisonment, fines, or any other forms of retribution.
How much is the processing fee?
The processing fee is the amount that is not included in the disbursed payment amount as deductions. It is calculated based on the total loan amount. The process of applying for a PPP loan forgiveness is the same as that of regular retirement preparation. A new set of income tax forms is needed to be submitted along with the application form.