Calculating your PPP loan forgiveness amount is based on many factors. We’ve created a set of excel spreadsheets to assist you in working with your bank. Our goal is to help you better understand the process & maximize your loan forgiveness. You are responsible for the accuracy of your forgiveness application.
PPP Loan Forgiveness Calculators
How to Estimate Your Paycheck Protection Program Loan Forgiveness
Before you begin, determine whether you will use the Covered or the Alternative Covered Period.
The Covered and the Alternative Covered Periods are both 24 weeks (168 days), unless you are eligible to choose the original 8-week (56 day) period. Only borrowers who received their PPP loan before June 5, 2020 may choose the 8-week period.
The Covered Period begins on the date you receive your loan amount. The Alternative Covered Period begins on the first day of the first pay period following the receipt of your loan amount. Only borrowers with a biweekly (or more frequent) payroll schedule may choose to use an Alternative Covered Period.
In no event will a covered period extend beyond December 31, 2020.
Next, gather your eligible costs during your covered period. This includes payroll costs and non-payroll costs (mortgage interest, rent, and utilities) and number of Full-Time Equivalent (FTE) employees. Still in your covered period right now? You’ll estimate your upcoming costs.
Current Limitations on PPP Loan Forgiveness
Your loan forgiveness may be reduced, unless you use at least 60% of the forgiveness amount for payroll costs. Applying less to payroll costs may result in needing to pay money back.
Loan forgiveness may be further reduced based on the difference between FTEs and wages-paid levels during your covered period and the number of FTEs and wages paid during a look-back period. Fewer FTEs and/or lower wages during the covered period will reduce the amount of the loan that can be forgiven.
Keep an eye out for changes in the program…it is evolving.