Paycheck Protection Program Loan Calculator
Calculate PPP loan eligibility, maximum loan amount, and repayment schedule for small business relief
PPP Loan Calculator
Include salaries, wages, commissions, tips, benefits (capped at $100,000 per employee annually)
Leave empty to use maximum eligible amount
Date when loan is originated
Optional additional monthly payment
When to start extra payments
Example Calculation
Small Business Example
Business: Small retail store with 8 employees
2019 Total Payroll: $480,000
Average Monthly Payroll: $40,000
Maximum PPP Loan: $40,000 × 2.5 = $100,000
Loan Terms
Loan Amount: $100,000
Interest Rate: 1.00% annual
Monthly Payment: ~$4,281
6-month deferment with interest accrual
PPP Program Overview
Eligibility
Businesses with ≤500 employees
Including nonprofits, sole proprietors
Loan Amount
2.5× average monthly payroll
Capped at $10 million
Forgiveness
Use for payroll, rent, utilities
75% minimum for payroll costs
Eligible Expenses
Payroll Costs (75% minimum)
- • Salaries and wages
- • Employee benefits
- • Vacation pay
- • Health insurance premiums
- • Retirement benefits
Other Expenses (25% maximum)
- • Mortgage interest
- • Rent payments
- • Utility payments
PPP Tips
Apply through existing SBA lenders
No collateral or personal guarantee required
Maintain employee count for forgiveness
Use funds within 8 weeks for forgiveness
Understanding the Paycheck Protection Program
What is the PPP?
The Paycheck Protection Program (PPP) was a federal relief program designed to help small businesses keep their workforce employed during the COVID-19 pandemic. The program provided forgivable loans to eligible businesses to cover payroll and other essential expenses.
Key Features
- •Low 1% fixed interest rate
- •2-year repayment term
- •6-month payment deferment
- •Potential for full loan forgiveness
Loan Amount Calculation
Maximum Loan = 2.5 × Average Monthly Payroll
(Capped at $10 million)
Forgiveness Requirements
- Use of funds: At least 75% for payroll costs
- Employee retention: Maintain headcount
- Wage maintenance: No more than 25% wage reduction
- Covered period: 8 weeks from loan disbursement
Note: Consult with your lender and financial advisor for specific eligibility and forgiveness requirements.