FAQ #40 Helps Restaurants with
Rehiring and PPP Loan Forgiveness
As regulators continue to evaluate the requirements for loan forgiveness of the Paycheck Protection Program (PPP), there have been some wins for restauranteurs. On May 5, 2020, the U.S. Department of Treasury (Treasury) provided updated information via their Frequently Asked Questions (FAQ) document to assist those experiencing difficulty in getting furloughed or laid-off employees to return to work.
As noted in FAQ #40, Treasury will not reduce a borrower's forgiveness due to an unfilled position as a result of a former employee declining re-employment. However, restaurateurs must be prudent in obtaining written documentation of the rehire employment offer and document if the offer was declined. For further guidance on this matter and how it impacts your full-time equivalent employee (FTEE) calculation, visit us online.