The Small Business Administration (SBA) has extended the period for returning loans received by businesses through the Paycheck Protection Program in order to be eligible for the Employee Retention Credit.
As stated in an update on May 6, 2020, from the Paycheck Protection Program Loans FAQs in Question 45
“An employer that applied for a PPP loan, received payment, and repays the loan by the safe harbor deadline (May 14, 2020) will be treated as though the employer had not received a covered loan under the PPP for purposes of the Employee Retention Credit. ”
The latest update also clarifies affiliation rules with regard to counting the employees and of foreign and U.S. affiliates. According to Question 44 of the document
“For purposes of the PPP’s 500 or fewer employee size standard, an applicant must count all of its employees and the employees of its U.S and foreign affiliates, absent a waiver of or an exception to the affiliation rules.”
The latest FAQs update published by the SBA and the Department of the Treasury is provided below
PAYCHECK PROTECTION PROGRAM LOANS Frequently Asked Questions (FAQs)