In an important recent response issued to its regularly updated FAQs, the SBA addressed the situation of where a PPP borrower’s forgiveness amount would be reduced if the borrower lays off an employee and then offers to re-hire the employee, who in turn declines the offer.  Such borrowers can exclude those laid-off employees from loan forgiveness reduction calculations if said employees…

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In an important update released yesterday evening, the IRS has stated that PPP loans that are later forgiven do not trigger deductions.  Thus, businesses that use PPP loans to pay otherwise deductible expenses, such as wages, will not be allowed those deductions to the extent that the PPP loan is forgiven. Separately, new IRS FAQs were just released in connection with the employee…

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