WebDec 4, 2024 · The Borrower is exempt from the reduction in loan forgiveness based on a reduction in FTE employees if both of the following conditions are met: (a) the Borrower … WebJun 25, 2024 · New Safe Harbor from the FTE Reduction Rule : In the latest IFR, the SBA discussed the new safe harbors to the FTE reduction rule in a manner that appears to be very borrower friendly. As you know, PPP loan forgiveness is reduced if you reduce your FTE count during your covered period (when compared to your reference period).
PPP and PPP2 Loan Forgiveness Rules and …
WebJan 1, 2024 · If the June 30, 2024 FTEs are greater than the February 15, 2024 FTEs, the safe harbor is met and no reduction in forgiveness is required. For our example, let’s assume that Susan does not meet the safe harbor. In this case, 3 / 4.5 FTEs is 66.67% times $80,000 equals $53,333 of final forgiveness or a reduction of $26,667. WebSafe Harbor Rate has the meaning set forth in Section 2.C. (ix). Sample 1. Based on 1 documents. Safe Harbor Rate means 150% of the highest applicable federal rate, based … business kaartjes laten drukken
Applying for PPP Loan Forgiveness: The Definitive Guide - Davis …
WebDetermine if loan forgiveness must be reduced due to a salary/hourly wage reduction of more than 25%. Consider if any reduction is remedied by meeting the safe harbor. Step 3 Determine whether a full-time equivalent (FTE) reduction occurred. Consider whether FTE reduction exceptions or FTE reduction safe harbor 1 or 2 applies. Step 4 WebJul 28, 2024 · FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if FTE Safe Harbor is met: _____ Divide line 12 by line 11 (or enter 1.0 if the FTE Reduction Safe … WebMay 21, 2024 · The good news is a borrower may ignore a potential reduction based on a reduced FTE count if a safe harbor is met. The borrower is exempt from the loan forgiveness reduction based on FTEs if both of the following conditions are met: Borrower reduced its FTEs in the period beginning February 15, 2024 and ending April 26, 2024 business kakuna