Option 1 – SBA Suggested Calculations:

The SBA has instructed borrowers to use 40 hours per week as the equivalent of a full-time employee.  Additionally, the defined that the maximum for each employee is capped at 1.0  This means any hours past 40 hours per week are not included in the calculation of average FTE.

FTE =  Average Number of Hours PAID per week/40 hours
*totals must be rounded to the nearest tenth per employee

Option 2 – Simplified Calculations:

A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the Borrower.