PPP Loan Calculator

Your guide to Paycheck Protection Program loan eligibility.

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Paycheck Protection Program Loan Calculator

Were you in business February 15, 2020?

Is this your first or second PPP loan?

What were your total payroll costs for 2019, 2020 or in the last 12 months?

Disclaimer: Seasonal Employers (In operation for less than 7 months a year) 2.5x any average 12 week payroll between February 15, 2019 and February 15, 2020.

Partnerships (LLC), Self Employed, Sole Proprietor, or Independent Contractor? Your calculations for maximum loan amount differ. See the question “How do I calculate the maximum amount I can borrow?” in our loan forgiveness FAQ.

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How much you may qualify for

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PPP Loan Calculator

As the small business community continues to navigate through the COVID–19 crisis, access to capital has never been more necessary. Business owners around the country are lining up for their share of the billions of dollars in emergency government-backed financing that will help them keep employees on payroll and to cover business operating expenses during the pandemic.

Funding Circle will continue to process Paycheck Protection Program loans for small business owners as soon as the government authorizes the program to reopen — which is expected as early as January 15, 2021.

As you prepare to submit your application, there are steps you can take now. This should help make the process smoother and to give you an idea of what to expect. Below is Funding Circle’s Paycheck Protection Program Loan Calculator.

What is the Paycheck Protection Program?

The Paycheck Protection Program (PPP) was originally authorized as part of Congress’ Coronavirus Aid, Relief and Economic Security (CARES) Act. It has been reauthorized and expanded through the passage of the ‘‘Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act’’. PPP loans are a SBA loan that is up to 100% forgivable and available to eligible small businesses through any SBA approved lender including Funding Circle. The Paycheck Protection Program, which is available through March 31, 2021 or until funds have been exhausted (whatever comes first), is meant to incentivize business owners to keep employees on the payroll at the same or a comparable salary. As a result, the features and factors that go into calculating your COVID–19 relief loan — from the amount you can borrow to the amount eligible for forgiveness — is derived based on your monthly payroll expenses for the time period between 8 and 24 weeks after origination.

Tell me more about this business loan forgiveness feature

Up to 100% of the PPP loan can be forgiven if the funds are used in accordance with the rules as prescribed by the SBA. At least 60% of the loan must go to covered payroll costs and the rest to covered non-payroll expenses:

Payroll costs such as:

  • Employee salaries (including commissions and tips)
  • Healthcare coverage (including group life, disability, vision, or dental insurance)
  • Retirement benefits
  • Vacation and paid leave (family, medical, etc.)
  • Taxes addressed on compensation

Non-payroll costs such as:

  • Rent payments
  • Utility bills
  • Interest payments (not principal payments) on mortgages or debt incurred before February 15th, 2021
  • Covered operations expenditures: Payment for any software, cloud computing, and other human resources and accounting needs.
  • Covered property damage costs: Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
  • Covered supplier costs: Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditure: Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.

But what’s the size of your loan? That’s where the PPP Loan Calculator comes into play.

The Paycheck Protection Program, which lasts through March 31, 2021 or until funds have been exhausted (whichever comes first), is meant to incentivize business owners to keep employees on the payroll at the same or a comparable salary. As a result, the features and factors that go into calculating your COVID–19 relief loan — from the amount you can borrow to the amount eligible for forgiveness — is derived based on your monthly payroll expenses for the time period between 8 and 24 weeks after origination.

What’s the payroll loan calculator?

Payroll is such a broad term. There’s little doubt that you are wondering just like many other business owners like you what this encompasses. Payroll costs include:

  • Salary, wages, commissions, or tips. These have a ceiling of $100,000 annualized per employee
  • Employee benefits across vacation costs; parental/family/medical or sick leave; an allowance for separation/dismissal; healthcare costs including insurance premiums; retirement benefits
  • State and local taxes on compensation
  • Self–proprietor or independent contractors — wages, commissions, income, or net earnings from self–employment with a ceiling of $100,000 annualized per employee

The Funding Circle CARES Act SBA Loan Calculator will help you determine the amount you can likely borrow, based on a set of relevant criteria. Below, use the calculator to enter your business information and determine the size of the COVID–19 relief loan you may qualify for.

The Funding Circle CARES Act SBA Loan calculator will walk you through a series of questions, beginning with whether you were in business on Feb. 15, 2020. You will also need to know what your total payroll costs were in the last 12 months.

Based on those criteria, the SBA Loan Calculator will tell you the amount you may qualify for, so you don’t have to do any back–of–the–napkin math on your own.

How does the SBA Loan Calculator determine the size of my loan?

Step 1: Aggregate payroll costs from 2019 or 2020 for employees whose principal place of residence is the United States.

Step 2: Subtract any compensation paid to an employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred.

Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).

Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.

Second draws only: If your business is a restaurant or accommodations (your business’ NAICS code starts with 72), you may multiply the average monthly payroll costs from Step 3 by 3.5. Otherwise, multiple your monthly average payroll costs from Step 3 by 2.5.

Step 5: For First draw loans only: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).

Partnerships (LLC), Self Employed, Sole Proprietor, or Independent Contractor? Your calculations for maximum loan amount differ. See the question “How do I calculate the maximum amount I can borrow?” in our loan forgiveness FAQ.

What else can I expect from a Paycheck Protection Program loan through Funding Circle?

PPP small business loans are 100% backed by the government and there are no borrower or lender fees to apply or obtain a PPP loan. If any portion of your PPP loan that doesn’t qualify for forgiveness, the remaining portion will carry a fixed interest rate of 1% for a five year term. On top of that, if a portion of your loan is not forgivable, you’ll get even more cash flow relief during COVID–19, considering that your first payment will not be due for six months after the SBA has reviewed your forgiveness application.

To be eligible for loan forgiveness, you must keep your payroll intact or speedily rehire any employees who were let go as a result of COVID–19. If the number of your staff or their salaries and wages decreases, the amount of the business loan that’s forgivable will be decreased as well.

Paycheck Protection Program loans issued by Funding Circle after June 5, 2020 will have a term of five years and have a cap of $2 million. Funding Circle urges business owners to apply for a PPP relief loan as soon as possible since funds are limited and will be issued on a first come first served basis. With that in mind, you can apply now here.

What else can I do to prepare for getting a PPP Relief Loan?

Now is the time to prepare your application so that you’re ready to apply for a PPP loan with Funding Circle when the program reopens again (subject to SBA approval).

What information will I need to complete my application?

  • Form 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount), or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions.
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.
  • A copy of official identification (such as a driver’s license)
  • A copy of a voided check

Self Employed, Sole Proprietor, Independent Contractor:

  • 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C
  • 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS.
  • 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.
  • A copy of official identification (such as a driver’s license)
  • A copy of a voided check

Partnership

  • 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1065 (including K-1s) and other relevant supporting documentation if the partnership has employees, including the 2019 or 2020 (whichever you used to calculate loan amount).
  • IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements) along with records of any retirement or health insurance contributions.
  • If the partnership has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the partnership was in operation and had employees on that date.
  • If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020 must instead be provided.
  • A copy of official identification (such as a driver’s license)
  • A copy of a voided check

Seasonal

  • Form 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate the payroll for any 12-week period beginning February 15, 2019, and ending February 15, 2020.), or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions.
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.
  • A copy of official identification (such as a driver’s license)
  • A copy of a voided check

* This list of documents was last updated January 8, 2021 and is subject to change based on SBA guidance.

Is the Paycheck Protection Program a business owner’s only option?

In short, no: It’s not your only option. The SBA is also delivering emergency sources of capital through the Economic Injury Disaster Loan (EIDL) and the Economic Injury Disaster Grant. Business owners can access the application for an EIDL loan for up to $2 million right on the SBA website. The term for the loan is up to 30 years at a fixed interest rate of 3.75% for small businesses / 2.75% for nonprofits. One of the main criteria is that you must employ 500 or fewer people.

You can request an Economic Injury Disaster Grant of up to $10,000 through the EIDL application process with the SBA. The cash grant is forgivable if you direct the funds for acceptable reasons. These reasons include paid leave, payroll expenses, higher costs in the supply chain as a result of COVID–19, mortgage/lease payments, and other bills that can’t be paid as a direct result of revenue loss from the economic shutdown.

Similar to Paycheck Protection Program funds, EIDL loans, and grants are limited in nature, so time is of the essence.