SBA Releases Updated Frequently Asked Questions (FAQs) for PPP Loan Program

On May 5, the SBA released updated Frequently Asked Questions (FAQs) for the PPP Loan Program. Question #40 specifically addresses the issue of employees refusing to be rehired. It states that these employees will be excluded from the loan forgiveness reduction calculation. To be excluded, the employer must have a written offer to the employee to rehire and that the employee(s) rejection of that offer is documented.

This is great news for clients that have employees that declined to be rehired due to them earning more money on unemployment based on getting the $600 supplemental Federal unemployment benefits compensation.

We are recommending that clients make the offer in writing via email or mail and that they require the employee(s) to notify them in writing by email or mail their rejection.

We have attached the link to the FAQs for your convenience.

https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions-5-5-20.pdf

If you have any questions, please do not hesitate to contact your Core accountant.

Information contained in this BLOG should not be construed as the rendering of specific bookkeeping, accounting, tax, consulting or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will Core Financial Outsourcing, Inc. be liable for any damages – direct or indirect or consequential – claimed to result from use of the material contained in this BLOG. Persons are encouraged to consult with their Core advisor BEFORE making decisions.

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