We break down how to complete the PPP Loan Forgiveness Application for you!
Now that the PPP Loan Forgiveness Application is out (download it here), our office has received several (an understatement) calls and emails regarding how to fill it out. To make it easier, our team has broken it down for you.
The most difficult page seems to be page 9, but we’ve broken down the entire application process below.
Although the document is eleven pages long, you’ll only need to fill out four pages.
- Start on page 3 and complete the top section.
- The turn and do page 9.
- Next complete page 6.
- After that, return to page 3 and complete the bottom part using the information from the previously completed pages.
- Finally, turn to page 4, initial everything, and sign.

Top of Page 3: PPP Loan Forgiveness Calculation Form
Business Legal Name (“Borrower”) DBA or Tradename, if applicable
Enter the same business name used on your PPP application, which should be identical to your business name on your tax returns.
Business Address/Business TIN (EIN, SSN)/Business Phone/Primary Contact/E-mail Address
Use the same information as on your PPP application, unless it has changed since you completed it.
SBA PPP Loan Number
This is your E-tran number that the SBA generated for you. If you don’t have this number, contact your lender.
Lender PPP Loan Number
This is the number that your lender has assigned to your loan in their system. You can usually find this on your loan docs. If you don’t have this, contact your lender.
PPP Loan Amount
The full loan amount you received.
PPP Loan Disbursement Date
The day the funds arrived in your bank account.
Employees at Time of Loan Application/Employees at Time of Forgiveness Application
Enter the number of actual employees on the date you applied for the loan, and the date you applied for forgiveness (now).
EIDL Advance Amount
If you applied for and received an EIDL advance, enter this amount.
EIDL Application Number
If you applied for an EIDL loan, whether you received one or not, enter the number here.
Payroll Schedule
Select the frequency of payroll being paid to employees.
Covered Period
Calculate the period starting from the date you received the PPP loan to eight weeks (56 days) after.
Alternative Payroll Covered Period
This applies to you if you run payroll on a biweekly or more frequent basis.
- You can start your covered period for payroll on the day of your first pay period.
- If you decide to use this period, you must use it for all parts of the application that call for it (no picking and choosing).
If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million
Check if applicable to you.
Forgiveness Amount Calculation
Skip this for now, and come back. You’ll need to complete Schedule A first to get the figures you need, which we’ll find by starting on the Schedule A Worksheet first.

Page 9: PPP Schedule A Worksheet
Self-employed individuals without payroll can ignore the worksheet, and proceed to Schedule A on page 6.
Table 1
List every single employee on your payroll during the 8-week Covered Period (or the Alternative Payroll Covered Period). Do not include anyone who does not live in the US, any independent contractors, yourself, or your partners.
Also do not include anyone who received an annualized pay rate of more than $100,000. Those employees are to be listed in Table 2.
Employee’s Name
Full name
Employee Identifier
Last 4 digits of SSN
Cash Compensation
The employee’s compensation over the 8 weeks, which includes:
- gross salary
- gross wages
- gross tips
- gross commissions
- paid leave (vacation, family, medical or sick leave, but not leave covered by the Families First Coronavirus Response Act)
- allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period
Average FTE
For simplicity, you can choose to use 1.0 for anyone who works 40 hours or more, and 0.5 for anyone else.
Salary / Hourly Wage Reduction
This is where you calculate if you’ve met the forgiveness requirements for maintaining pay.
For each employee, complete the following steps:
Step 1: Determine if pay was reduced more than 25%
Compare the employee’s pay during the covered period (or alternative payroll period) to the pay between January 1 to March 31. If pay decreased by less than 25%, enter 0. Otherwise, proceed to the next step
Step 2: Determine if the Salary/Hourly Wage Reduction Safe Harbor is met
The employee meets the Safe Harbor requirements if these two conditions apply:
- The average annual salary or hourly wage on June 30 is equal to or greater than the average annual salary or hourly wage on February 15
- The average annual salary or hourly wage between February 15 and April 26 was lower than it was on February 15
If those conditions apply, the employee has met the Safe Harbor requirements. Enter 0. Otherwise, proceed to the next step.
Step 3: Determine the Salary/Hourly Wage Reduction
Determine the difference in salary/wage by subtracting the pay the employee’s pay during the covered period (or alternative payroll period) from 75% of the pay between January 1 to March 31
For hourly workers: Multiply the calculated difference by the average number of hours worked per week between January 1 and March 31. Multiply by 8 to get the full 8-week equivalent. Enter this amount.
For salaried employees: Enter the 8-week equivalent of the difference in salary by multiplying by 8/52
FTE Reduction Exceptions
If you had any employees you could not hire back, they can be included here. They can be included if the position was not filled by a new employee and they meet one of the following conditions:
- The employee rejected your good-faith, written offer to rehire them at the same pay rate/hours as before
- They were fired for cause
- They voluntarily resigned
They voluntarily requested and received a reduction of their hours
Table 2
Follow the same process as Table 1, but only considering employees who were paid an annualized rate of more than $100,000 for any pay period in 2019.
FTE Reduction Safe Harbor
This is where you calculate if you’ve met the forgiveness requirements for maintaining pay.
- Calculate the following FTEs. We’ll do the required calculations later on.
- Total average FTE between February 15 and April 26. Record on Step 1
- Total FTE in your pay period that includes February 15. Record on Step 2
- Total FTE on June 30. Record on Step 4

Page 6: Schedule A
Self-employed individuals without payroll only need to complete Lines 9 and 10 and ignore the rest.
Line 1
From the worksheet, Box 1.
Line 2
From the worksheet, Box 2.
Line 3
From the worksheet, Box 3.
If all your employees were paid at least 75% of their original pay (between January 1 and March 31), check the box and enter 0.
Line 4
From the worksheet, Box 4.
Line 5
From the worksheet, Box 5.
Lines 6 to 8
Enter the employer-paid expenses for employee health insurance, retirement plans, and state and local taxes on the payroll.
Line 9
Enter the compensation paid to yourself and your partner(s). For self-employed individuals, this is where you can enter your owner’s compensation replacement. Partnerships (or in general, if any other individuals were compensated as an owner), include a separate table that lists how the compensation was paid out (names and amounts).
Line 10
Sum lines 1, 4, 6, 7, 8, and 9.
Full-Time Equivalency (FTE) Reduction Calculation
If there was no reduction in FTE between Jan 1 and the end of the covered period, check the box, skip lines 11 and 12, and enter 1.0 on line 13.
Line 11
Average FTE for one of the following periods
- February 15, 2019, to June 30, 2019
- January 1, 2020, to February 29, 2020
Seasonal employers can use either period, or any consecutive twelve-week period between May 1, 2019, and September 15, 2019.
Line 12
From the worksheet, the sum of Box 2 and 5.
Line 13
Refer back to the FTE Reduction Safe Harbor section on the Schedule A Worksheet.
- If Step 2 is less than Step 1, divide line 12 by line 11 and enter the result.
- Otherwise, if Step 4 is greater than Step 2, enter 1.0.
- Otherwise, divide line 12 by line 11 and enter the result.

Bottom of Page 3: PPP Loan Forgiveness Calculation Form
Line 1: Payroll Costs
From Schedule A, line 10.
Line 2: Business Mortgage Interest Payments
Enter the sum of interest payments on any business mortgages that were in effect before February 15, 2020. Prepayments are not allowed.
Line 3: Business Rent or Lease Payments
Enter the sum of business rent or lease payments, where the rent/lease agreement was in effect before February 15, 2020.
Line 4: Business Utility Payments
Enter the sum of business utility payments, where the utility agreement was in effect before February 15 2020.
Line 5: Total Salary/Hourly Wage Reduction
From Schedule A, line 3.
Line 6: Add the amounts on lines 1, 2, 3, and 4, then subtract the amount entered in line 5
This is the preliminary amount of eligible forgivable expenses, accounting for any reduction due to not meeting the 75% pay requirement, but not yet accounting for the FTE requirement.
Line 7: FTE Reduction Quotient
From Schedule A, line 13.
Line 8: Modified Total
Multiply line 6 by line 7.
This is the final amount of eligible forgivable expenses, accounting for any reductions due to not meeting the FTE or pay requirement.
Line 9: PPP Loan Amount
The same value you listed previously.
Line 10: Payroll Cost 75% Requirement
Divide line 1 by 0.75 to determine the maximum forgivable amount possible.
Line 11: Forgiveness Amount
Enter the smallest of lines 8, 9, and 10.
Congratulations!
The amount of the loan forgiven is listed on line 11 of page 3. You’ll need to pay back page 3 line 9 minus line 11.
Now turn to page 4, initial and sign and you’re done!
