By Chuck White, Vice President of Regulatory Affairs
The Small Business Administration (SBA) has added an Item 40 to their list of FAQ’s expanding on the topic of PPP loan forgiveness. Some employers are finding laid-off workers declining return-to-work offers when those workers are receiving greater pay through un-employment. Employers are then faced with a declining staff count, which could affect the forgiveness of their Paycheck Protection loan. The Department will issue an interim rule that will clarify that employers who make a good faith offer, in writing to an employee and further documents that employee’s decline of the offer, may exclude that employee from the CARES Act loan forgiveness reduction calculation. Further, the employee in this situation may forfeit their eligibility for continued unemployment compensation.
Vice President of Regulatory Affairs , PHCC-National Association