SBA / Treasury FAQ – 14. What time period should borrowers use to determine their number of employees?

Compliance > CARES Act
Q:  What time period should borrowers use to determine their number of employees?
 
A:  Borrowers may use their average employment over the time period used to calculate their loan amount to determine their number of employees, for the purposes of applying an employee-based size standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational, if it has not been operational for 12 months).
 
Seasonal businesses must use the average number of employees per pay period during the 12-calendar week period the borrower used to calculate its payroll costs.
 
 
This Q&A was based on information contained in the Treasury Department’s March 12, 2021, version of “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
 

Add Feedback