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"Rubio Statement on Paycheck Protection Program Re-hire Exemption"

Summary

A statement dated May 5, 2020 from U.S. Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, issued after the U.S. Small Business Administration and the Department of the Treasury gave additional guidance on loan forgiveness reductions when Paycheck Protection Program borrowers are unable to rehire their workers. Rubio is quoted calling it "a welcome relief" that borrowers will not be penalized after a documented good faith effort, and urging comprehensive loan forgiveness guidance. The release states that Question 40 in the frequently asked questions document exempts such borrowers from certain reductions to their loan forgiveness. It adds that employees may be ineligible to continue receiving unemployment benefits if their employer received PPP funds for their wages, and that an interim final rule is forthcoming.

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Title: Rubio Statement on Paycheck Protection Program Re-hire Exemption
Date: 2020-05-05

Rubio Statement on Paycheck Protection Program Re-hire Exemption

May 5, 2020

Washington, D.C. — U.S. Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, issued the following statement after the U.S. Small Business Administration (SBA) and U.S. Department of the Treasury provided additional guidance related to loan forgiveness reductions if Paycheck Protection Program (PPP) borrowers are unable to successfully rehire their workers. Last month, Rubio called for clarity from the administration on the re-hire exemption.

“It is a welcome relief to numerous PPP borrowers  that they will not be penalized if they cannot rehire their workers after making a documented good faith effort,” said Chairman Rubio. “This is a step in the right direction and must be followed up with comprehensive loan forgiveness guidance in order to ensure business owners not only have the rules of the road when applying for forgiveness, but are not penalized for good faith decisions made absent this guidance earlier in the process.”

Question 40 in the frequently asked questions (FAQ) document states that if PPP borrowers are unable to successfully rehire their workers, they will be exempt from certain reductions to their loan forgiveness. It also notes employees may be ineligible to continue to receive unemployment benefits if their employer has received PPP funds for their salary or wages. The agencies stated an interim final rule on the subject is forthcoming.

Related:

April 17, 2020: Chairman Rubio Sends Letter to SBA and Treasury on Implementation of the Paycheck Protection Program.

April 29, 2020: ICYMI: Chairman Rubio on Fox and Friends.

Permalink: https://www.sbc.senate.gov/public/index.cfm/2020/5/rubio-statement-on-paycheck-protection-program-re-hire-exemption

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