#PPP FRAME CALCULATING HOW TO#

Businesses in the accommodation and food services industry can borrow 3.5x the average monthly payroll costs. The SBA uses the same formula to calculate the maximum you can borrow for a second PPP loan with one exception.

#PPP FRAME CALCULATING HOW TO#

How to calculate your maximum Second Draw PPP loan amount The resulting number is the maximum amount you can borrow through the Paycheck Protection Program.

Subtract any advance you received on your EIDL - you don’t have to repay this amount.

Add the EIDL balance to your maximum loan amount based on payroll, which you calculated in Step 2.

You’re required to refinance any EIDL your business received to cover payroll costs during the coronavirus outbreak. If your business didn’t receive an EIDL that you used to cover payroll costs between Januand April 3, 2020, you’re finished. Multiply the average monthly payroll cost you calculated in Step 3 by 2.5. Step 4: Calculate your maximum loan amount. Step 3: Calculate an average monthly payroll cost.ĭivide the results you calculated in Step 2 by 12.

Subtract that amount from the payroll costs.

Multiple it by the number of months your payroll costs cover in Step 1 more info button.

If you have a new or seasonal business, follow these steps: How to subtract excess salaries for new and seasonal businesses

Subtract that amount from the annual payroll cost you calculated in Step 1.

Subtract $100,000 from the salary of each employee who makes over $100,000 annually.

If none of your employees make over $100,000 a year, skip ahead. The Paycheck Protection Program doesn’t cover anything over $100,000 for an individual employee’s annual salary before federal income taxes. Step 2: Subtract excess from salaries over $100,000. The start date is up to you, the business owner. Add up the payroll costs for a 12-week period between Februand February 15, 2020. Add up monthly payroll costs between Januand February 29, 2020. New and seasonal businesses also have the option of using these payroll costs instead: Only include costs from employees who primarily live in the US, excluding independent contractors that your business has hired - they can apply for a PPP loan on their own.

Step 1: Add up your payroll costs.Īdd up all eligible payroll costs before federal taxes in 2019 or 2020. How much you receive depends on your employee's salaries and whether you got an Economic Injury Disaster Loan (EIDL) and grant.įollow these steps to get an accurate count of your payroll costs. However, it's not exactly that straight forward. One month of eligible payroll costs x 2.5 = Maximum Paycheck Protection Program loan amount.The SBA uses the following formula to calculate the maximum amount you can borrow through the Paycheck Protection Program: How to calculate your maximum PPP loan amount Apply for a Paycheck Protection Program loan today.How to calculate your maximum Second Draw PPP loan amount.How to calculate your maximum PPP loan amount.

Ppp frame calculating