---
title: Favorable SBA Guidance - PPP Loan
description: The SBA recently issued favorable guidance addressing problems small-business owners have faced in bringing back workers.
---

# News & Events

# Favorable SBA Guidance - PPP Loan

 Posted by: [ Employer Flexible ](https://blog.employerflexible.com/author/employer-flexible) on  May 14, 2020

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As a follow-up to our [PPP Loan Forgiveness: Calculator and FAQs ](https://blog.employerflexible.com/ppp-loan-forgiveness-calculator-and-faqs)post, below is more information from the SBA on re-hiring employees.

The SBA [recently issued favorable guidance](https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05%2006%2020.pdf) addressing problems small-business owners have faced in bringing back workers. The guidance, issued last week, states that if a small business makes a written offer to re-hire a worker and that worker chooses not to accept, then the employee will not be counted against the small business for purposes of the FTE forgiveness-reduction rule. 

This guidance is significant for small businesses that are struggling to recover and are counting on loan forgiveness. For most small businesses, obtaining loan forgiveness, as opposed to debt that must be re-paid in two years, will be critical to their future and whether they can stay in business and maintain their payroll.

 

 Topics: [Small Business](https://blog.employerflexible.com/tag/small-business)

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