Paycheck Protection Program (PPP) Loan Forgiveness

Get up to 100% of your PPP loan forgiven based on your employee status, payroll and how you used the loan funds.

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Here’s how it works

Loan Forgiveness Timeline
  • If employees and payroll have remained consistent with pre-COVID levels, you can have up to 100% of your loan forgiven.

  • The SBA will forgive the portion of the loan used for payroll, rent, mortgage interest or utility payments for up to 24 weeks after the loan is issued.

  • Any amount that is not forgiven will be treated as a two-year loan with a 1% fixed interest rate.1

  • All payments (principal and interest) are deferred until you receive a decision on your loan forgiveness application. However, interest will continue to accrue over this period. If your forgiveness application was submitted after your deferral period, payments are due while the application is under review.

Preparing for loan forgiveness

Check out the latest eligibility guidelines and learn what documents prepare for your business type.

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How loan forgiveness is calculated

To calculate how much of your loan can be forgiven, your lender will use the responses from your application to:

  1. 1

    Determine the maximum amount of possible loan forgiveness.

    This is based on how much you spent on payroll and other eligible expenses like rent and utilities during the 24-week period.

  2. 2

    Calculate the amount (if any) by which the maximum loan forgiveness will be reduced.

    If you reduced your number of employees or their wages during the 24-week period, your loan forgiveness amount will be reduced.2

  3. 3

    Understand how much of your loan was used on eligible expenses.

    Only 40% of your PPP loan can be used for expenses other than payroll for certain business structures. If you used more than 40% on non-payroll expenses, your forgiveness amount will be reduced by the percentage of the loan you used on ineligible expenses.

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Learn more about loan forgiveness

Review our FAQs for details about applying for loan forgiveness.

Review FAQs

Be aware of potential scams

We want to make sure you and your business are protected and get the critical funding you need during this crisis. Review our FAQs for signs of potential SBA fraud, which you can report online or through the Office of Inspector General's hotline at 800-767-0385.