The amount equal to the sum of the following costs incurred and payments made during the 8-week period beginning on the date of the origination of the covered loan will be eligible for forgiveness of indebtedness:

• Payroll costs, including additional wages paid to tipped workers.

• Any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation)

• Any payment on any covered rent obligation

• Any covered utility payment

Limits on Forgiveness Amount:

1. The amount may not exceed the principal.

2. The amount will be reduced along with a reduction in a number of employees (with exceptions).

3. The amount will be reduced along with a reduction relating to salary and wages in excess of 25% (with exceptions).

Forgiveness Reduction:

• Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

• Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

• Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

• Wages or Salary: If the total wages of salary of any employee (relative to the most recent full quarter before the loan) is reduced by more than 25%, forgiveness will be reduced by the same amount as that salary decrease over 25%.

Tipped Workers:

An eligible recipient with tipped employees described in section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) may receive forgiveness for additional wages paid to those employees.

Exemption for Re-Hires:

If you reduced employment or wages during the period beginning on February 15, 2020, and ending 30 days after enactment of the CARES Act, you may be able to avoid a reduction in loan forgiveness if you eliminate the reduction in employment or wages by June 30, 2020.