The covered period is either the 24-week period beginning on the loan disbursement date or if the borrower received the loan before June 5, 2020, the 8-week period beginning on the loan disbursement date. 

Eligible nonpayroll costs cannot exceed 40% of the total forgiveness amount. If salaries decrease by more than 25% for any non-owner employee who made less than $100,000 annualized in 2019 OR if the number of FTEs decreases, the forgiveness amount will be reduced unless safe harbors is met.

An FTE reduction exception (meaning that a reduction of FTE in these circumstances does not reduce loan forgiveness) is available for any of the following:

• Borrower makes a good-faith, written offer to rehire or restore the reduced hours of an employee during the covered period or the alternative payroll covered period, the offer was rejected and the borrower has documentation of the offer and rejection.
• Employee was fired for cause
• Employee voluntarily resigned
• Employee requested and received a reduction of their hours
• Borrower in good faith can document the inability to
  • rehire individuals who were employees on February 15, 2020 and
  • hire similarly qualified employees for unfilled positions on or before December 31, 2020 or
  • return to the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued related to COVID-19

Borrowers using this exception are required to certify that they have documented in good faith that their reduction in business activity during the covered period stems directly or indirectly from compliance with sanitation, social distancing or any other worker or customer safety requirement related to COVID-19.