Paycheck Protection Program Calculator
Calculate maximum PPP loan amounts and loan forgiveness eligibility for small businesses.
Understanding the Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) was established by the U.S. Small Business Administration (SBA) to provide forgivable loans to small businesses during economic disruptions.
How Maximum PPP Loan Amount Is Calculated
For most eligible small businesses, maximum loan size is calculated as 2.5 times the average monthly payroll:
\[ \text{Max Loan} = \text{Average Monthly Payroll} \times 2.5 \]
Businesses in the accommodation and food services sector (NAICS Code 72) were eligible for Second Draw loans up to 3.5 times average monthly payroll.
PPP Loan Forgiveness Requirements
Borrowers are eligible for 100% loan forgiveness if funds are spent on covered expenses and at least 60% of total forgiven costs are allocated toward payroll expenses.
Frequently Asked Questions
What counts as eligible payroll costs?
Eligible costs include gross salaries, wages, commissions, tips, group health insurance premiums, retirement benefits, and state/local payroll taxes.
What non-payroll expenses qualify for forgiveness?
Qualifying non-payroll costs include business mortgage interest, commercial rent/lease payments, utility payments, and essential operating expenditures.
What are the terms for any unforgiven loan portion?
Any portion of the PPP loan that is not forgiven matures as a 1% interest rate loan over a 2-year or 5-year repayment term.
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