PPP Forgiveness: What To Do If You Got A Paycheck Protection Program Loan & Your Employees Won’t Come Back

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: Question: Will a borrower’s PPP

loan forgiveness amount(pursuant to area 1106 of the CARES Act and SBA’s implementing rules and guidance)be lowered if the customer laid off a worker, provided to rehire the exact same staff member, however the staff member declined the deal? Employees and companies need to be mindful that employees who decline deals of re-employment might surrender eligibility for continued unemployment payment. If some employees do not want to or can’t return to work, you can work with new staff members. In order to certify for the PPP exemption that excludes laid-off workers whom the borrower has offered to rehire but refused to return, the employer requires to record the staff member’s rejection of the return-to-work offer. If some workers don’t want to come back and it’s not feasible to increase existing employees’payment or to find replacement workers in time, you may only qualify for partial forgiveness on your PPP loan.

: Question: Will a debtor’s PPP

loan forgiveness quantity(pursuant to area 1106 of the CARES Act and SBA’s implementing rules and guidance)be minimized if the borrower laid off a worker, used to rehire the exact same worker, but the worker declined the deal? If some staff members don’t want to or can’t return to work, you can work with new employees. If some workers don’t want to come back and it’s not feasible to increase existing employees’compensation or to discover replacement workers in time, you may just certify for partial forgiveness on your PPP loan.

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