July 23, 2020
Why would I want to choose the eight-week Covered Period instead of the 24 weeks?
Posted by Armanino Financial Advisory Team
While the extension is intended to enable businesses to spend more of their loan proceeds, for many sectors of the economy shut-downs or slow-downs may persist through much of the rest of year. In such instances, it is quite possible that a business that has maintained its employees through the eight weeks may be unable to sustain those employees for the full 24 weeks. This could result in a layoff midway through the 24 weeks that will cause the FTE Reduction Factor to reduce their overall forgiveness, which could have been avoided had they chosen the eight-week option.