The FTE Calculation for the PPP Loan

One of the requirements for full forgiveness of the Payment Protection Program (PPP) Loan is maintaining your full-time equivalent (FTE) employee headcount during the Covered Period. Many have never heard of FTE so we’ll break it down for you here.

Note: Self-employed individuals with no payroll are not required to calculate an FTE.

What is the Full-Time Equivalent?

The SBA FTE refers to the number of hours worked by a single employee in a week. The annual FTE count is 2,080 hours, which breaks out into eight hours per day, five days a week. The calculation is used to standardize the hours worked by part-time employees into those worked by full-time employees.

Example: If you have one employee who worked 60 hours, one employee who worked 30 hours, and one employee who worked 10 hours on a project in a given week, that adds up to 100 total hours that week; assuming a full-time employee works 40 hours per week, your FTE is 2.5 (100 divided by a 40 hour work-week).

If you have questions or would like to discuss your PPP loan or business with us, please email us at or call us at (347) 201-2045.

This post was adapted from the latest SBA/Treasury updates as of May 15, 2020. It is intended to be used for informational purposes only and does not constitute legal, business, or tax advice. It is always best to consult with a qualified professional before making decisions with respect to matters referenced in this post.

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