Can the loan be forgiven?
Yes. If you use the PPP loan and proceeds for specific operating expense purposes
within the allowed time period up to 100 percent of the loan can be forgiven.
Allowable forgivable uses include:
PAYROLL SUPPORT
DOCUMENTATION
EMPLOYERS
IRS Form 990—Return of
Organization Exempt from
Income Tax;
IRS Form 941—Employer's
Quarterly Federal Tax
Return;
IRS Form 944—Employer's
Annual Federal Tax Return
State Income, Payroll,
and Unemployment
Insurance Filings; and
PEO Reports.
SELF-EMPLOYED
IRS Form 1040, Schedule C;
IRS Form 1099-MISC;
Profit & Loss Statement; and
Bank Records & Statements.
Forgiveness is based on the employer maintaining or quickly rehiring employees
and maintaining salary levels. To be forgiven, at a minimum, 75 percent of the
calculated loan forgiveness amount must have been used for allowable payroll.
If your business laid off employees or reduced salaries after February 15th, 2020,
you have until June 30th, 2020 to rehire those employees or raise wages without penalty.
If you lay off employees or reduce salaries after April 26th, 2020—or don’t hire back
any previously laid-off staff by June 30th, 2020—the amount of forgiveness you’re
eligible for will decrease.
Any amount of the loan not forgiven will be converted into a two-year term loan with
a fixed interest rate of one percent. No payments are required for the first six months.
Total
LOANED
AMOUNT =
What's the deadline?
June 30th, 2020
Payroll costs
Other eligible operating expenses
Interest on commercial property mortgages
Rent of commercial property
Business utilities
How do I calculate my loan forgiveness
and loan amount due?
- - LOAN
amount used
for allowable
PAYROLL
Self-employed: Demonstrating payroll
AMOUNT
Due
amount used
for allowable
EXPENSES
SBA requires sole proprietors, independent contractors, and other eligible self-employed individuals to provide
documentation to its lender that the business was in operation as of February 15th, 2020. This documentation
may include payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole
proprietorship. For borrowers that do not have any such documentation, the borrower must provide other supporting
documentation to its lender, such as bank records, sufficient to demonstrate the qualifying payroll amount.
Where do I apply?
Apply for the Paycheck Protection Program at any bank, credit union, or lender that participates in SBA’s lending
programs. Use SBA’s online Lender Match Tool at www.sba.gov/paycheckprotection/find or call your bank to find
a local SBA-approved lender.
/find
/find