1. What is the PPP Program?

The Paycheck Protection Program (PPP) is a U.S. Small Business Administration loan program that helps businesses keep their workforce employed during the COVID-19 crisis. Loans may be forgiven if certain conditions are met.

2. How Does PPP Calculation Work?

The calculator estimates:

Where:

• Payroll Costs — Includes salary, wages, commissions, tips, benefits, etc.
• Other Eligible Expenses — Mortgage interest, rent, utilities, etc.

Forgiveness Calculation: At least 60% must be spent on payroll costs to qualify for full forgiveness.

3. Importance of Accurate Calculation

Details: Proper calculation ensures businesses request the correct loan amount and maximize forgiveness potential while complying with SBA requirements.

4. Using the Calculator

Tips: Enter your total payroll costs and other eligible expenses in dollars. The calculator will estimate your potential loan amount and forgiveness.

5. Frequently Asked Questions (FAQ)

Q1: What time period does the payroll cover?
A: Typically the previous 12 months or calendar year, depending on program rules at time of application.

Q2: Are owner salaries included?
A: Yes, but may be subject to caps (e.g., $100,000 annualized).

Q3: What's the 2.5 multiplier?
A: It represents 2.5 months of payroll costs, the standard coverage period.

Q4: When must funds be spent?
A: Generally within 8-24 weeks after disbursement (varies by program round).

Q5: Is this calculator official?
A: No, always verify with SBA guidelines and consult a financial professional.