The short answer is yes. However, businesses must meet the following Small Business Administration requirements:
The borrower did not reduce annual salaries or hourly wages of any employee by more than 25% during the covered period compared to the most recent full quarter before the covered period, AND
The borrower did not reduce the number of employees OR the average paid hours of employees between January 1, 2020 and the end of the covered period
The borrower was unable to operate during the covered period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020, and December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued between March 1, 2020 and the last day of the covered period) by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.
Please Note: If you have had reductions in employees AND/OR reductions in full-time equivalent (FTE) employees, and are wondering how this reduction will impact your forgiveness application, please contact us.