Free PPP Calculator: PPP Loan Forgiveness Calculations Guide
time! If you have more than 20 employees, please continue to apply with your bank, remember this rule applies to the SBA, so your bank is likely to continue to accept applications and will just hold your application as the SBA opens up applications again and you will be at the front of the line.
The latest round of PPP loan applications closes on March 31, 2021. You can read more about this announcement here.
While PPP1 and PPP2 loan applications are open again, you still may be asking yourself some of these questions:
- How do I calculate PPP Loan Forgiveness?
- How do I plan for spending?
- Do I choose 8 weeks or 24 weeks?
- When will my bank forgive my loan?
We dug through two main sources to get you the answers – the Cares Act and the SBA’s Interim Final Rule. Even the name interim final rule suggests that the Treasury is building the plane while we are flying in it. We can’t get caught up in that though. We have to get to the next steps.
Why did we create a PPP Forgiveness Calculator?
We put together a free PPP Forgiveness Calculator to help with the documentation requirements we are expecting. There are two main areas that we focus on in the calculator:
- The forgiveness percentage which is based on number of employees you still have at the end of the period
- Qualified costs – we dig in line by line on each allowable cost.
The SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%
If the EZ form applies to you, our calculator will serve more as a central place for data collection and less as a calculator thanks to some of the new rules passed in June. However, if you need to file the Full Forgiveness Application, the calculator will help with both data collection and your calculations.
We have added step-by-step instructions to every tab in the calculator to make it easy as possible to use. We’ve also created a short instructional video to help walk you through the process of how to calculate PPP at the bottom of this post.
Here’s a nice review we received from someone who used the free CFO Office Hours to have his PPP questions answered.
“I contacted Kerry in reference to PPP loan questions I had not been able to find answers to. I spoke to my bank where I received my loan and the HR group my association was working with, and still could not get answers to many of my questions. Kerry was very much on top of his game. He answered all of my questions and now I am finally able to start my spreadsheets with confidence. Would highly recommend.”
Additionally, we are now offering PPP loan forgiveness calculations as a service for a flat fee of just 2% of the loan amount. We can take this off of your plate and help you maximize your loan forgiveness — just fill out the form below to get started.
PPP Loan Forgiveness Calculations Service
Another related question we’ve been getting is about whether or not PPP loan forgiveness is taxable. For answers on this topic, check out this blog post.
Additional Resources for Your Business During COVID-19
- Additional Available Funding – This is a list of a ton of different loans, grants, and funding opportunities that businesses should look through to see if they’re eligible for any additional aid.
- Small Business COVID Survival Guide – Check our guide for regular updates! Latest information includes: what the CARES Act means for small businesses in 2021; whether PPP Forgiveness is taxable; and The Employee Retention Credit (ERC).
- CFO Office Hours – If you have questions, you can reach out to us, or you can leverage our free CFO Office Hours to pick the brain of one of our seasoned CFOs.
Hopefully this helps! If you have additional questions, feel free to reach out to us at info@acuity.co, or schedule a free 30-minute session with one of our