May 5, 2020: Written by: Anthony J. Vizzoni, Esq., Partner, Becker LLC
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed by President Trump. The CARES Act created a new Small Business Administration (“SBA”) loan program known as the Paycheck Protection Program (“PPP”) which has provided billions of dollars in potential forgivable loans to businesses for purposes of maintaining and restoring jobs to their employees. Since the CARES Act has taken effect, the SBA and the Department of Treasury have been providing guidance addressing questions raised by both lenders and borrowers. On May 3, 2020, the SBA, in consultation with the Department of Treasury, provided additional guidance to address questions concerning the rehiring of employees that were previously laid off and have refused to return to work after the employer has made an attempt to rehire the employees.