
Show HN: SBA PPP Loan Forgiveness Calculator - latortuga
https://ppploancalc.com/
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underbluewaters
If this is accurate, it could be very educational. I was discussing these
"loans" with my Dad who owns a business with a lot of employees and was
worried that he was taking on debt. He explained to my relief that a great
deal of the loan would be forgiven.

Not being a business owner and having to know the details of the program, I
had assumed that these were merely favorable interest rates. Seems like the
politicians could have branded this program better. It sounded on the surface
like they were just loading up small businesses with more debt.

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latortuga
They are definitely favorable conditions, you get the loan at 1% interest and
are eligible for forgiveness of up to 100% of the loan if you use it on
certain types of expenses. Also, payments are deferred until after the initial
period is up (June 30th). Overall a very positive program.

By making the funds loans, they also were able to quickly disburse them by
using the existing legions of SBA lenders.

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dariusj18
Though getting a loan through a big bank was neigh impossible. My fiancée's
company banks with Wells Fargo and they didn't even get the application (after
applying to get an application) until the first round of funds were gone.
Thankfully they then applied with several smaller banks and was able to get
one from with the new funding.

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latortuga
I think that unfortunately this heavily depended on your bank. Wells Fargo
really dropped the ball, but Bank of America was one of the first banks to
accept applications and therefore disburse money. We used a regional bank whom
we had an existing relationship with and it went pretty smoothly, better than
if we had tried with WF.

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icelancer
>> Wells Fargo really dropped the ball

This implies that they screwed up and they might deserve forgiveness. They had
no intention of lending PPP funds except for large preferred accounts they
wanted to help.

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zieski
Not defending Wells Fargo at all, but they were also limited due to
restrictions placed on them for some of their criminal activity and therefore
had a limited pool to lend with for PPP.

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icelancer
Legitimate. Thanks for bringing that up. Wasn't aware.

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henriquez
Amazing work! This seems like a great way to clear up uncertainty around these
loans.

It's worth clarifying that (unless Congress changes something), loan
forgiveness counts as a taxable event. Meaning a business would have to pay
income tax on the amount of the loan that was forgiven, typically at the time
it's forgiven. This could be preferable to paying the loan, but might require
taking on a new (smaller) loan to cover the tax liability.

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dbjacobs
Actually the CARES Act states loan forgiveness is not taxable (Act §1106(i))
[1], but also prevents businesses from then taking a deduction for expenses
paid with the money (so no double benefit).

[1] -
[https://www.congress.gov/116/bills/hr748/BILLS-116hr748eas.p...](https://www.congress.gov/116/bills/hr748/BILLS-116hr748eas.pdf)

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themagician
Maybe I'm wrong about this, but the wording on the site makes it seem like
those who make over $100,000 are exempt from forgiveness entirely, but it was
my understanding that the are covered, just not beyond $100,000. So you can
pay someone over the $100k annualized threshold, it just won't add to the
amount forgiven. So the single person cap is effectively $16,666
(($100k/12)*2).

Am I wrong?

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zieski
The SBA may release more guidance but as of now payroll costs over $100k are
not included in the calculation of the eligible loan amount. They have not
been excluded from forgiveness.

However, the forgiveness penalties for reductions of more than 25% in
wages/salary for employees does not apply to employees making over $100k.

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indymike
Nicely done! I really like how clear the UI is. This will clear up a lot of
"how do we use the PPP money?" arguments that are going on.

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nodesocket
If you are self employed and no employees how does the payroll section work?

For example, I don't have a fixed payroll. I am setup as a single member LLC
(disregarded-entity) and just transfer money from the business checking into
my personal checking when appropriate. No formal payroll solution.

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tcas
From my reading of the interim rules, it's based on your 2019 Schedule C Line
31 (Total Profit and Loss), capped at 100k.

For forgiveness it's: ($100,000 / 52 weeks) * 8 weeks = $15,384. The rules and
new clarifications seem to change every week, I'd consult a CPA before
assuming anything.

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danalt
it's 10 weeks (2.5 months) not 8.

Therefore: ($100,000 / 52 weeks) * 10 weeks = $19,230.

