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PPP Forgiveness with Reduced Headcount

How will PPP forgiveness with reduced headcount work? If the business uses the funds for payroll and rent/utilities within the approved percentages, but fails to retain its previous headcount, will the amounts used be forgiven and the remainder become a loan? Or, does failure to retain headcount make them ineligible for any forgiveness? Or something else?

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Comments

  • Brian_SBMBrian_SBM Vice President, Entrepreneurship Administrator admin

    @LauraG We don't know, unfortunately, without further guidance from SBA. I would strive to restore headcount. If you can't but still expend 75% on payroll, I would hope that it would be forgiven, but the rules are still lacking in that regard. I would just make good faith efforts to expend your PPP on what you used to qualify for it.

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