Restoration: if a borrower eliminates any reductions in FTE employees occurring between February 15, 2020 and April 26, 2020 (the safe harbor period) by December 31, 2020 (or, for a PPP loan made on or after December 27, 2020, by last day of the loan's Covered Period), the borrower is exempt from any reduction in loan ...

What does FTE reduction safe harbor mean?

FTE Reduction Safe Harbor. A goal of the PPP loan is to have you keep employees on payroll, rather than furlough or lay them off. So if your business does have a reduction in full-time equivalent employees (FTEs), your PPP loan forgiveness amount may be reduced.

How do you calculate FTE safe harbor?

Take the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. The maximum for each employee is capped at 1.0. 2. Or, simply assign a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours.