https://www.withum.com/resources/sba-issues-ppp-loan-forgiveness-application/ii. The certifications in the application limit forgiveness on compensation for owner-employees, self-employed, and general partners to eight-weeks’ worth of 2019 compensation, and caps the amount at $15,385
a. This limits the ability to pay amounts in excess of 2019 compensation,
including any hazard pay or bonus payb. This implies that hazard pay, bonus pay,
and amounts in excess of 2019 compensation can be provided to other persons, such as employees
7. There is no reduction in forgiveness if the borrower fails to spend at least 75% of loan amount on payroll costs
Wage Reduction Rule
9. The application requires the base period for this calculation to be the first three months of 2020, i.e., from January 1, 2020 through March 31, 2020.
15. FTE Reduction Exceptions – FTE reductions during the CP (or APCP) will not reduce loan forgiveness if they result from any of the following: (i) the employee was fired for cause, (ii) the employee voluntarily resigned, or (iii) the employee voluntarily requested and received a reduction in their hours. This favorable rule can be viewed as an expansion of the exception in FAQ #40 for employees that were laid-off and refused to return to work.
16. The FTE Reduction Safe Harbor takes a snapshot approach to the rehire exemption. It looks to the borrower’s total FTE count as of June 30, 2020, and there is no requirement that any compensation be paid or incurred prior to June 30, and there is no requirement that the employee be retained for any period of time after June 30, though we expect substance over form will be applied on any subsequent audit.