Q: Is it true if a company take the paycheck protection program loan n under the Cares act and keep the same workforce ?
Is it true if a company take the paycheck protection program loan under the Cares act and keep the same workforce or salary levels the company qualify for loan forgiveness? So this means my job can't fire me or they will have to pay the loan back
A:
An employer does not have to keep the same workforce it had before it gets a PPP loan. If it fails to maintain at least 75% of the number of employees employed in the pre-COVID workforce, it will have its forgiveness reduced, but the company is not disqualified altogether unless the number of employees falls far below the 75% number. Also, the SBA looks at number of employees not retention of employees. Therefore if the employer had 10 employees before qualifying for the PPP and 10 completely different employees thereafter, the company still qualifies for forgiveness.
Finally, there is nothing in applying for the PPP loan that would prevent an employer from terminating any or all employees and you as an employer would have no standing to make an issue of it. It is all between the employer and the SBA.
Good luck to you.
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