Reference Period: The reference period is, at the borrower’s election, either (i) February 15, 2019 through June 30, 2019; (ii) January 1, 2020 through February 29, 2020; or (iii) in the case of seasonal employers, either of the preceding periods or any consecutive 12-week period between February 15, 2019 and February …

What is the reference period for PPP Round 2?

The covered period is now defined as “the period beginning on the date the lender disburses the PPP loan and ending on any date selected by the borrower that occurs during the period (i) beginning on the date that is eight weeks after the date of disbursement and (ii) ending on the date that is 24 weeks after the date …

What is the comparison period for PPP loan forgiveness?

Borrowers have 10 months from the end of their covered period to apply for forgiveness before they will need to start repaying their PPP loan. Lenders have 60 days to make a decision on loan forgiveness.

Can I use the 24 week period for PPP loan?

A borrower may select a covered period between 8 weeks and 24 weeks, which commences upon disbursement of the PPP loan proceeds.

How do I know my PPP covered period?

The first day of the Covered Period must be the same as the PPP Loan Disbursement Date. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14.

What is the difference between the 8 week and 24-week PPP?

If you reduce your full-time employee count or employee wages after the 8-week period, that might reduce your eligible forgiveness amounts. However, a longer, 24-week covered period gives you more time to remedy any reductions in employee count or wages.

When is the reference period for PPP loans?

The comparison to be made is your FTEs during your Covered Period (or Alternative Covered Payroll Period) and your Reference Period. The Reference Period is typically your choice of either 1) February 15, 2019, through June 30, 2019, or 2) January 1, 2020, through February 29, 2020.

When is third period for PPP loan forgiveness?

Seasonal employers have a third period to choose from, which can be any consecutive 12-week period from May 1, 2019 to September 15, 2019. For filers of Form 3508, Borrowers must calculate average FTEs for both (i) the Covered Period, [9] and (ii) the chosen Reference Period.

When to reduce FTE for a PPP loan?

If the business reduced FTE or salary/wages between Feb 15, 2020, and April 26, 2020 (known as the “Safe Harbor”) and restored FTE levels or salaries/wages to the same level as the Feb 15, 2020 pay period by December 31, 2020 (or, for loans made after December 27, 2020, the end of the business’s covered period).

When does the covered period start for PPP?

The period starting with the date of funding is called the Covered Period. You may use an Alternative Covered Payroll Period that begins on the first day of your first payroll period beginning after your funding date. There’s an example on page 1 of the SBA’s PPP loan forgiveness instructions under Alternative Covered Payroll Period.