SBA and Treasury Update FAQs To Clarify That Businesses That Repay PPP Funds Are Eligible for the Employer Retention Credit
The Treasury Department and Small Business Administration have updated their FAQs on the Paycheck Protection Program (PPP) to clarify that employers that repay their PPP loans by the newly extended May 14, 2020 “safe harbor” deadline are eligible for the Employee Retention Credit. Specifically, the agencies state that the employer in this scenario will be treated as though they had not received a covered loan under the PPP for purposes of the Employee Retention Credit. Pursuant to the CARES Act, the refundable Employee Retention Credit is 50 percent of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
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