PPP Loan Forgiveness

Question: Will my PPP Loan Forgiveness amount be reduced if an Employee declines my offer to rehire them?

No. Both the SBA and Treasury intends to issue an interim final rule stating that if you offer to rehire a laid-off employee (for the same salary and number of hours), but they reject your offer, their refusal to come back to work will not impact the calculation of your loan forgiveness.

To qualify for this exemption, the Employer must have made a “good faith, written offer of rehire” and the Employee’s rejection of that offer must be documented. Both the Employee and Employer should be aware that rejection of the offer may forfeit the Employee’s eligibility of continued unemployment compensation.

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