PPP Loan Not Right for Your Organization? The Employee Retention Credit Might Be – And It Could Be Improving

June 12, 2020

Mike Batts, CPA


Nonprofit organizations that have decided not to apply for a Paycheck Protection Program (PPP) loan or that have returned PPP loan funds should evaluate the Employee Retention Credit (ERC).

The ERC is a relief provision contained in the CARES Act passed into law on March 27, 2020, and under current law, it is not available to PPP loan borrowers.   According to PPP loan guidance issued by the SBA on May 5, 2020 in the form of FAQ #45, a PPP borrower that returned its PPP loan funds prior to the SBA’s safe harbor date of May 18 will be treated as though the borrower had not received a PPP loan for purposes of the Employee Retention Credit.

Our firm has prepared a summary of the Employee Retention Credit including some observations for churches, schools, and other organizations subject to the mandatory suspension of group meetings.

Click here for a downloadable PDF of our summary.

We’re here to help!

If you would like assistance evaluating the Employee Retention Credit for your organization, please let us know.  Our team of highly experienced tax professionals will be glad to help!   You may contact us at [email protected].


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