AICPA Offers Loan Forgiveness Calculator for Paycheck Protection Program

May 15, 2020

The AICPA has created a loan forgiveness calculator for the Paycheck Protection Program (PPP) and recently shared it with the Treasury Department and Small Business Administration (SBA). The calculator is designed to resolve many of the loan forgiveness issues on which AICPA members and their small business clients have requested guidance since the CARES Act began to be implemented.

The calculator is based on existing PPP guidance from the Treasury and SBA, as well as additional recommendations from the AICPA. The calculator and recommendations have been made in consultation with an AICPA-led small business funding coalition whose members serve businesses that employ more than 75 million people.

The AICPA states that the calculator is divided into three sub-categories: 1) non-payroll expense tracking, such as mortgage payments, rent and utilities; 2) FTE (full-time job equivalent) reduction, which tracks whether businesses shed any employees over the 8-week period; and 3) payroll accumulator, which helps small businesses capture the amount of eligible payroll costs and whether wages on a per employee basis declined in the 8-week covered period. These sub-fields are then used to make a loan forgiveness calculation.

As more information on the calculator becomes available, TSCPA will continue to post the latest updates on the TSCPA news page and TSCPA Talks.