Paycheck Protection Program (PPP) Loan Calculator

Calculate your payroll costs for PPP loan with our calculator
Paycheck Protection Program (PPP) Loan Calculator

Overview of the Paycheck Protection Program (PPP)

The Paycheck Protection Program is a part of the Cares Act which is passed by March 2020. This particular program funds $350 billion for those small businesses which are affected due to the COVID-19 pandemic.

Small businesses can claim this 100% guaranteed Federal loans to retain their workers and to maintain their cash flow for certain payroll expenses.

PPP also waives all the SBA fees and provides the businesses with the deferral on load repayments for a minimum of 6 months to a maximum of 1 year.

Who is eligible for a Paycheck Protection Program Loan?

This PPP program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Who is eligible for a Paycheck Protection Program Loan?

Eligible Payroll Expenses for Calculating PPP loan

Payment of State and Local taxes

Payment of State and Local taxes

Payment of State and Local taxes

Payment for group health-care benefits

Payment of State and Local taxes

Payment of employee retirement benefits

Payment of State and Local taxes

Employees salary, hourly wages, and cash tips

Payment of State and Local taxes

Payment for vacation, family, medical, and sick leave

Payment of State and Local taxes

Allowance for employee dismissal or separation

Paycheck Protection Program

Loan eligibility calculation

Were you in business February 15, 2019?
Are you a seasonal business?

Payroll Expenses paid for all the employee
Employee wages paid:
$
Healthcare costs:
$
Retirement benefit payments costs:
$
Maximum Paycheck Protection Program loan amount:

Business Expenses
Annual rent + mortgage interest:
$
Annual utilities:
$
Economic Injury Disaster Loan (EIDL)
Loan received under (EIDL) as of April 3, 2020:
$
Maximum loan amount eligible for
Loan forgiveness calculation
Forgiveness Details 8-week equiv
Employee Wages expenses
Healthcare costs
Retirement benefit cost
Rent + mortgage interest cost
Utilities
Total loan forgiveness

Frequently Asked Questions on Paycheck Protection Program

How do I apply for the Paycheck Protection Program?

To apply for a Paycheck Protection Program loan, you can approach any lending institution that is an approved participant of the program through the existing SBA 7(a) lending program. In addition to this, you can apply for a PPP loan from any Federally insured depository institution, Federally insured credit union, and Farm Credit System institution that is participating in the program.

When can I apply for a Paycheck Protection Program loan?

Small businesses and sole proprietorships can begin applying on April 3, 2020. And the Independent contractors and self-employed individuals can apply beginning April 10, 2020.

When is the deadline to apply for a Paycheck Protection Program loan?

You can apply for a PPP loan from April 3, 2020, onwards until June 30, 2020- the application deadline date.

When will I be eligible for forgiveness on a Paycheck Protection Program loan?

The loan you receive is fully forgiven only when the organization meets by certain parameters. According to which, the funds should have been used for Payroll Costs- includes employee salaries, hourly wages, cash tips, health insurance premiums and paid sick or medical leave Paying interest on mortgages, rent payments, leases, and utility service agreements.

In addition to those stated above, forgiveness is also based on employer maintaining or quickly rehiring employees and maintaining the salary levels. If the employer lay off employees, the forgiveness amount is proportionately reduced by the percent decrease in the number of employees laid off in comparison with the previous year’s headcount.

What information is needed to apply for a PPP Loan?

You should have your payroll data to back up your application information.

  • Copies of your business IRS Form 941 for all quarters of 2019.
  • An individual employee’s wages over $100,000 annually
  • An employee’s compensation whose principal place of residence is outside the U.S.
  • 2019 and 2020 payroll ledgers that show payroll costs which include (Salary, Wages, healthcare benefits, State and local taxes).

How much can you receive from the PPP loan?

Only eight weeks of payroll expenses and additional amounts needed to make a payment towards debt and other obligations are covered. It’s the borrower’s prerogative to choose any eight-work period between February 15, 2020, and June 30, 2020. The maximum amount a small business can apply would be 250 percent of its average payroll expenses incurred during the 1-year period, up to a total of $10 million.

Should I pay interest for any unforgiven loan amount?

The Paycheck Protection Program provides businesses with a maximum repayment window of 10 years with a top interest rate of 4 percent. The borrower need not pay any loan fees, and the SBA has waived collateral and personal guarantee requirements.