FTE Reduction Exemptions: Any reduction because of the following will likely not lessen the debtor’s loan forgiveness: 1) a debtor that laid off a worker agreed to rehire the exact same employee for exactly the same salary/wages and same amount of hours, nevertheless the worker declined the offer (the debtor will need to have made the offer in good faith as well as in writing and also the worker’s rejection of the offer should be documented because of the debtor together with debtor must notify the relevant state jobless workplace of these worker’s refused offer of work within 1 month of these worker’s rejection associated with the offer), 2) a member of staff ended up being fired for cause or voluntarily resigned through the Covered Period (or alternate Payroll Covered Period), or 3) a member of staff voluntarily asked for and received a reduction in his / her hours.
FTE Reduction secure Harbors: a debtor that rehires or replaces employees who have been formerly let go are going to be exempt through the lowering of loan forgiveness through the Covered Period (or alternate Payroll Covered duration) provided that 1) such employee decrease took place between February 15, 2020 and April 26, 2020, and 2) the borrower restored its FTE employee levels by no later than December 31, 2020 to its FTE worker levels when you look at the debtor’s pay duration that included February 15, 2020.
Any decrease centered on FTE will likely be disregarded in case a debtor has the capacity to report its incapacity to come back to the exact exact exact same standard of business task as it had been running at before February 15, 2020, because of direct or indirect conformity with demands founded or guidance granted because of the Secretary of health insurance and Human solutions, the Director associated with the Centers for infection Control and Prevention, or perhaps the Occupational Safety and Health management throughout the duration starting on March 1, 2020 and closing December 31, 2020, associated with the upkeep of criteria for sanitation, social distancing, or other worker or consumer security requirement linked to COVID-19. Continue reading “We Accepted Our PPP Funds, So What Now? An Updated Guide to Loan Forgiveness”