![]() $50,000 and less: click on the following link to download this Excel Forgiveness Calculator.Read the loan forgiveness requirements carefully so you can understand why you may or may not be eligible for PPP forgiveness.There are two versions of the Excel Forgiveness Calculator for PPP loans: However, if you restore full-time employees and wages by June 30, 2020, you may be exempt from certain wage reductions.īefore you begin applying for PPP loan forgiveness, make sure you have all the proper documentation and required SBA and lender information you need. If you have some full-time employees who refuse to return, your loan forgiveness eligibility will not be penalized if you’re able to provide proof of a good faith, written offer of rehire and the employee’s rejection of that offer. The quicker you rehire and restore compensation, the higher your chances for loan forgiveness qualification will be. The PPP loan forgiveness eligibility is based on maintaining your current employees and their wages paid. The remaining $475,000 would convert into a 2-year loan with a fixed 1% interest rate.įor better forgiveness eligibility, consider rehiring and retaining your FTE employees. You reduced employee wages by 30%, so your forgiveness amount is reduced by 30% ($225,000) to $525,000. You borrowed $1,000,000 in PPP funds but only used $500,000 to cover payroll and $250,000 to cover other qualified expenses. Let’s say you have 10 full-time employees during normal business operations. Finally, subtract any funds you received from the EIDL, and that’s your loan forgiveness amount. Do the same for any reductions in the average full-time employees per month, and the average full-time employee percentage reduction. That’s the maximum you can be forgiven.įrom there, subtract the percentage of reduced wages. Once you’ve gathered the numbers you need, start with the amount of PPP loan proceeds you borrowed and used for payroll expenses and other qualified expenses (mortgage, mortgage interest, rent, and utility costs). Any adjustments for FTE, wage reductions, and EIDLĮven if you’re still in your covered period, you can estimate the upcoming eligible payroll costs to include in your loan forgiveness application.Your mortgage, mortgage interest, rent, and utility costs.Gather the following information from the 24-week coverage period: While lenders will work with their customers individually to calculate loan forgiveness, you can estimate the amount using a loan forgiveness calculator or estimator. Your 24-week covered period would end on October 15, 2020. Let’s say you received funds on April 30, 2020. Remember that it starts on the day of loan disbursement from your lender. Any alternative payroll covered period, if applicableīefore trying to estimate your potential forgiveness amount, make sure you have the dates right for your 24-week “alternative payroll covered period” during which you used these funds.Your covered period (either the 8-week or 24-week period after your loan was disbursed).The EIDL application number if you applied.The EIDL advance amount if you received one.The date you received your PPP funds from your lender or the date you received your first PPP loan disbursement. ![]() The number of employees at the time of your forgiveness application.The number of employees at the time of your loan application.The SBA PPP loan number assigned by your lender.Your business’s address, phone, primary contact, or email address that matches the info on your loan application. ![]() ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |