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

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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.

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