April 6, 2020 - NFP CARES Act Webinar CARES Act Webinar - NFP - Final | Page 17

PAYCHECK PROTECTION PROGRAM (PPP)
REDUCTION OF LOAN FORGIVENESS
Loan recipients must maintain existing
employment levels "to the extent practicable"
during the loan term and cannot reduce
salaries by more than 25% (for those paid
under $100k)
Employers that maintain employment for the 8
weeks after origination of loan, or restore
employees by June 30, 2020 will have loans
forgiven in whole or part, essentially turning
the loan into a grant. Section 1106.
17