Just just exactly How will my average FTE be affected if we apply prior to the end of this 24 week covered duration?
You should calculate average FTE based on the number of weeks between the loan disbursement up to the time you applied for forgiveness if you opt to apply for forgiveness before the end of the covered period. You’ll submit that loan forgiveness application prior to the end for the 8 week or 24 week covered duration, you are requesting forgiveness if you have used all of the loan proceeds for which. To determine the income decrease penalty, you need to account fully for any wage reductions more than 25 % for the whole period that is covered.
So how exactly does the FTE decrease secure Harbor work?
The Safe Harbor exempts or protects you against the decrease in loan forgiveness due to diminish in FTE worker amounts. You’re exempt through the decrease in loan forgiveness if both of listed here conditions are met: You paid off FTE employee amounts between February 15, 2020, and closing April 26, 2020; You then restored FTE employee levels by no later than December 31, 2020 You might also be exempt because of these reductions whenever you can report that you’re unable to rehire workers or employ replacement employees for unfilled positions or cannot come back to normal company tasks as a result of COVID related safety demands.