Question: How Do I Calculate My PPP Loan?

What documents are needed for PPP forgiveness?

Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state..

How does the 24 week PPP work?

24-week covered period: If you received your PPP funds after June 5, 2020, your covered period is 24 weeks. You must apply for forgiveness within 10 months of your covered period if you would like to defer payments, which could begin as early as August 2021.

Can I apply for a PPP loan online?

You’ll start the process by filling out basic information through their new PPP loan portal, which will then be handed off to a Funding Circle account manager who will reach out to you to help complete your application and any necessary supplementary documents.

Where do I apply for PPP loans?

You can apply for both a PPP and EIDL loan. Check eligibility before you apply. You can apply through any SBA approved 7(a) lender.

What are the rules for the PPP loan?

The loan amount is based on your average monthly payroll cost for 2019. You can receive 2.5 times that amount, to help cover eight weeks of payroll. The funds from the PPP can be used for the following purposes: Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits.

Has any PPP loans been forgiven?

The PPP was launched when Congress passed the CARES Act in March, but businesses are still waiting to find out if the $525 billion in loans will be forgiven. … 1, not a single loan had been forgiven.

Are PPP funds still available today?

New PPP and EIDL Funds Available The second wave of PPP loans was available until August 8, 2020 and expired with funds still available.

Do PPP loans need to be repaid?

Yes. PPP loans (the full principal amount and any accrued interest) may be forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan. … Businesses have up to 24 weeks from the date you received the loan to spend the funds and be eligible for loan forgiveness.

How do I calculate my PPP loan amount?

The maximum amount of money you can borrow through the PPP is equal to 2.5 times your average monthly payroll costs or $10 million, whichever is lower.

How much of the PPP money is left?

There’s roughly $138 billion remaining in the fund, a number that’s actually increased since the end of June, in part because loans were canceled and duplicate reporting loans were deleted.

When should I apply for PPP forgiveness?

You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.

How is the PPP forgiveness calculated?

Potential forgiveness amounts (60% payroll requirement) Almost there. … This shows you the total of your payroll and non-payroll costs, minus your wage reduction amounts, then multiplied by your FTE reduction quotient. Line 9: Simply enter the PPP loan amount you received from your lender.

How do you calculate average monthly payroll for paycheck protection program?

The new regulations have updated the steps as follows:Step 1: Take your 2019 IRS 1040 Schedule C line 31 net profit (if you have not filed a 2019 return, fill out the schedule C and compute the vavlue). … Step 2: Divide that number by 12 to get the average monthly net profit.Step 3: Multiply that number by 2.5.More items…•

Who is eligible for a PPP loan?

Who Qualifies for a PPP Loan? Any small business with 500 or fewer employees may be eligible. This includes small businesses, S corporations, C corporations, LLCs, private nonprofits, faith-based organizations, tribal groups and veteran groups.

What is the maximum PPP loan amount?

$10 millionYour maximum PPP loan amount will be 2.5 times your average monthly payroll costs, up to $10 million. You can only receive one PPP loan, so if you apply for a PPP loan you may consider applying for the maximum amount you are eligible for.