If your business has received a Small Business Administration loan through the Paycheck Protection Program (PPP), you might be wondering how much of that loan may be forgivable by the federal government. Many factors determine loan forgiveness, and government guidance is evolving and may change or clarify certain calculations. For the latest information on loan forgiveness, visit our PPP Guide which includes a checklist, FAQs and examples. To estimate how much of your loan may be forgiven, use the tool below.
Note that the government recently enacted the Paycheck Protection Program Flexibility Act (PPPFA), making important changes to the PPP forgiveness process. The covered period for spending PPP loans has been extended to 24 weeks or December 31, 2020, whichever is earlier. Borrowers who received a PPP loan prior to June 5, 2020, may elect to use the original 8-week covered period length. The wage and FTEE Safe Harbor restoration deadline for all borrowers is extended to December 31, 2020. Also, the minimum amount of the loan that must be spent on covered payroll costs has been reduced from 75% to 60%.