Businesses that received Paycheck Protection Program loans can exclude laid-off employees from loan forgiveness reduction calculations if the workers turn down a written offer to return to work, according to new guidance from the U.S. Small Business Administration (SBA).
The SBA warns that employees who reject offers of reemployment may find themselves ineligible to continue receiving unemployment benefits.
According to the new guidance, SBA and Treasury plan to issue a new rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the loan forgiveness reduction calculation spelled out in the Coronavirus Aid, Relief and Economic Security Act.