They typically offer small businesses lower interest rates and longer terms than other financing options. Loans and lines of credit. Use this calculator to accumulate and determine FTEs as defined for the PPP loan forgiveness process. Nothing on this website is an offer or a solicitation for a loan. Our SBA loan calculator will help you see just how affordable your SBA loan can be. PPP Loan Forgiveness Calculation Form ... U.S. Small Business Administration 409 3rd St, SW. Washington DC 20416. We at SBA.com® will be compiling and summarizing the most important information and tools you will need to make sure you properly apply for PPP loan forgiveness. The Paycheck Protection Program (PPP), a  lifeline thrown out by the federal government, is meant to help them keep employees on their payroll. PPP Loan Forgiveness Calculation Form. This is based on the fact that most publicly traded companies have access to sufficient liquidity, while to apply for a PPP loan, you must certify that the loan is “necessary to support [your] ongoing operations.” In other words, the PPP should be your only way to access needed financing. How to calculate your maximum PPP loan amount. The Small Business Administration (SBA), in consultation with the Department of the Treasury, is providing this guidance to assist businesses in calculating their payroll costs for purposes of determining the amount of a Paycheck Protection Program (PPP) loan businesses can apply for. Eight weeks of payroll costs, plus accrued interest on the PPP loan, will be forgiven as long as the full-time head count and payroll at a firm stay the same as they were on average in 2019 (or within the past 12 months – your bank will say how it is counting); between February 15, 2019 and June 30, 2019 (if you use seasonal workers); or between January 1, 2020 to February 29, 2020 (if you launched your business in July last year or later). Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12). Finding the right financial advisor for you doesn’t have to be hard. Small business owners may receive only one PPP loan, though they can also apply for an Economic Injury Disaster loan as long as the two loans cover different costs. The SBA loan calculator above does not reflect calculations related to the Paycheck Protection Program (PPP), the SBA initiative to aid business owners struggling to survive the coronavirus pandemic. We await further guidance to clarify whether to use the “received date of the loan amount” or the “loan made date” to determine eligibility to elect the eight-week period. Chat. Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation. You cannot use the funds from PPP loans and other loans for duplicate use at the same time. One of the provisions of the Act is the Paycheck Protection Program. One of the more crucial portions of the PPP application is where you’re supposed to input payroll costs. See our Advertiser Disclosure. The SBA uses the following formula to calculate the maximum amount you can borrow through the Paycheck Protection Program: One month of eligible payroll costs x 2.5 = Maximum Paycheck Protection Program loan amount; However, it's not exactly that straight forward. Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid). Additionally, the Treasury has ruled that public companies with significant market value are likely ineligible. Bank Rate is estimated – will vary depending on lender. The Loan Forgiveness Application Revised June 16, 2020, requires the Loan Forgiveness Calculation Form and PPP Schedule A to be submitted to the lender.