Updates on EIDL and PPP
FROM THE SBDC…
SBA EIDL Loans
As of 5 pm today the SBA is still only accepting SBA EIDL program applications from agricultural related businesses (farmers). If you are a farmer and have not submitted an application, it is recommended you do it as soon as possible. While it can’t be said for sure, it would be suspected the EIDL application process will soon be reopened for all businesses and the pool of money is limited.
PPP Loan Forgiveness and Employee Rehire Attempt Clarification
Yesterday the SBA and Treasury clarified that “a PPP loan forgiveness amount will still be forgiven if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer. SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.”
This is a question that has been asked many times over the last three weeks. The conventional thought and response was you needed to pay at least the same payroll dollars and maintain the same employee count that you indicated when you submitted the PPP loan application even if the employee chose not to come back. Now it appears from this guidance above that you would not need to do that if you can meet the demonstration test described above. I suspect many of you who got the PPP loans a while back already had to make a decision and may have hired alternate staff to replace the employee that did not return.
Testimonials
“I was born and raised in Ladysmith, Wisconsin. After high school, I took off, went to college in the Twin Cities, and traveled to many parts of the world like Tanzania, Ecuador, Mexico, the UK, and several US states. I moved to a small beach town in Florida for awhile after college but somehow found myself thinking about my hometown. After exploring parts of the world, I moved back to Ladysmith and found peace in the comfort and familiarity. It’s awesome being back home and seeing people from different generations come together and work towards making our small town a great place to live. I love going to local businesses and seeing many people I know, the live music opportunities at several of the local establishments, and the plethora of outdoor activities in nature. You can always venture out and explore the world, but there’s just something about that friendly small town vibe that keeps bringing me back home.”
McKenzie Morgan
Rusk County Resident
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