SBA / Treasury FAQ on Loan Forgiveness / Reductions – 5. For purposes of calculating the loan forgiveness reduction required for salary/hourly wage reductions…are all forms of compensation included…?

Compliance > CARES Act
Q:   For purposes of calculating the loan forgiveness reduction required for salary/hourly wage reductions in excess of 25% for certain employees, are all forms of compensation included or only salaries and wages?
 
A:   For purposes of calculating reductions in the loan forgiveness amount, the borrower should only take into account decreases in salaries or wages.
 
 
This Q&A was based on information contained in the Treasury Department’s October 13, 2020, version of “Paycheck Protection Program Loans, Frequently Asked Questions on PPP Loan Forgiveness,” which may be updated from time to time.  This CARES Act / SBA / PPP Loan Forgiveness-related issuance may be found here:  https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-FAQs.pdf
 

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