Businesses fortunate enough to receive a Paycheck Protection Loan (“PPP”) under the CARES Act are now asking, “what do I need to do to get this loan forgiven?” That answer gets more complicated as the days roll on without guidance from the Small Business Administration (“SBA”). Recall there were numerous changes/interpretations applicable to the application process as the application deadline neared.
Here is what we know so far:
Note: Reductions in FTE employees between 2/15/20 and 4/26/20 may not count if, by 6/30/20 the FTE employee count is equal to the count on 2/15/20. You can re-hire old employees or hire new employees to meet this.
Here is what we hope the SBA regulations will clarify:
The term ‘‘covered period’’ means the 8-week period beginning on the date of the origination of a covered loan.