1) For most Borrowers, the Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period. In no event may the Covered Period extend beyond December 31, 2020. For Borrowers with bi-weekly or more frequent payroll schedules, they can choose to use an alternate Covered Period. If that election is made, the Covered Period is the 24-week (168-day) period (or for loans received before June 5, 2020 at the election of the borrower, the eight-week (56-day) period) that begins on the first day of their first pay period following their PPP loan disbursement date.

2) Payroll costs are defined in the SBA rules to include: salary (not more than $100,000 on an annualized basis for any employee), wages, commissions, cash tips; vacation, parental, family, medical or sick leave; allowance for separation or dismissal; employee benefits such as payment for group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period) SBA First Interim Final Rule. For self-employed individuals who file a 2019 Form 1040 Schedule C, the funds may also be used for owner compensation replacement. Note the forgiveness amount for owner compensation replacement is limited to 8 weeks of net profit. Please see the additional rules for self-employed individuals. SBA Third Interim Final Rule.

3) For self-employed individuals who file a 2019 Form 1040 Schedule C, covered mortgage interest, rent and utility payments also must be deductible as business payments to be forgiven.

4) The same number of full-time equivalent (FTE) employees must be maintained during the covered period after you receive the funds when compared to the average number of FTEs you had in February 15, 2019 - June 30, 2019 or January 1, 2020 - February 29, 2020. It is your choice which period is used for this comparison.

5) Under the rules, the amount of eligible forgiveness amount will not be reduced if: (a) you, in good faith, are able to document that you were unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration (includes both direct and indirect compliance with COVID requirements and guidance, such as state and local government shutdown orders that are based in part on guidance from the three federal agencies [based on the Interim Final Rule posted June 22, 2020]), related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19; or (b) if both of the following conditions are met: (1) the borrower reduced its FTE employee level in the period beginning February 15, 2020, and ending April 26, 2020; and (2) the borrower then restored its FTE employee levels as of the earlier of December 31, 2020 or the date of the application to its FTE employee levels in the borrower’s pay period that included February 15, 2020. Also, any FTE reductions in the following situations will not reduce your loan forgiveness amount: The FTE of: (a) any positions for which the borrower made a good-faith, written offer to rehire an individual who was an employee on February 15, 2020 and the borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020; (b) any positions for which the borrower made a good-faith, written offer to restore any reduction in hours, at the same salary or wages, during the Covered Period or the Alternative Covered Period and the employee rejected the offer; and (c) any employees who during the Covered Period or the Alternative Payroll Covered Period (i) were fired for cause, (ii) voluntarily resigned, or (iii) voluntarily requested and received a reduction of their hours.