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AICPA Offers Loan Forgiveness Calculator for Paycheck Protection Program

The American Institute of CPAs has created a loan forgiveness calculator for the Paycheck Protection Program (PPP), the main small business relief vehicle under the CARES Act, and today shared it with the Treasury Department and Small Business Administration.

May 14th 2020
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The loan forgiveness calculator is based on existing PPP guidance from the Treasury and SBA, as well as additional recommendations from the AICPA. Both the calculator and the underlying recommendations have been made in consultation with an AICPA-led small business funding coalition whose members provide services and support to businesses that employ more than 75 million people.

The AICPA loan forgiveness 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
  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.

The calculator relies on several assumptions contained in the AICPA’s recommendations, such as how to calculate FTEs and the aligning of the 8-week covered period with the beginning of a pay period, rather than the date the PPP loan proceeds were disbursed. These assumptions are noted in the calculator template, as is a disclaimer that, in instances where SBA guidance is unclear, a CPA’s judgment and interpretation of the act may be necessary.

The AICPA plans to post the calculator as a resource for its members and their clients. For more information about the AICPA’s general resources for CPA firms on small business relief, please visit www.aicpa.org/SBA.

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