PPP Loan Forgiveness Application

There is a forgiveness application that was made available from the Paycheck Protection Program and here are the highlights and definitions:

Average Full-Time Equivalent “FTE” Calculation:

To calculate FTE, you can use a simplified version to determine this by assigning a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours.

Covered Period for Payroll Costs

The covered period is the eight-week (56 day) covered period of your PPP loan. The first day is the same date that you received the loan proceeds. For example, if loan proceeds were received on Monday, April 20, then the covered period is April 20th thru Sunday, June 14th.

Alternatively, eligible payroll costs can be calculated by using the eight-week (56 day) period that begins on the first day of the first pay period following the PPP loan disbursement date. For example, if you received your loan proceeds on Monday, April 20th and the first day of the first pay period following the PPP loan disbursement is Sunday, April 26th, then the first day is April 26th and the last day is Saturday, June 20th. This represents a 6 day difference from the first example.

Potential Forgiveness Amount

The potential forgiveness amount is the smaller of the PPP loan amount, 75% of your payroll costs, or the modified total calculation (which is the total of payroll costs, business mortgage interest, rent, and utility payments and then factors in wage reductions and FTE reductions).

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