PPP Recipients Reporting Workers Who Reject Job Offers: Patch PM

BEVERLY, MA — It's Tuesday, July 7. Here's what Patch has been covering on the North Shore and across Massachusetts today.

Monday's release of the names of companies that received loans from the federal Paycheck Protection Program has brought a flood of questions and concerns to Patch's email inboxes. PPP loans, which will be forgiven as long as businesses keep employees on the payroll and don't cut their pay, were aimed at avoiding mass layoffs. So a lot of readers were surprised to see the company that laid them off on our list of Massachusetts firms that received loans of $150,000 or more.

In most cases, the company laid off the workers before they secured the loan. But here's the rub: a lot of those companies offered to rehire those workers once they got the PPP loan and had those offers rejected because the laid off employee was getting more from unemployment than they would have earned by going back to work.

In May, the SBA and Treasury Department issued guidance on what to do in those cases. Companies won't have to repay their PPP loans if an employee rejected a rehire offer, but they will have to document the offer and rejection, and report the employee to the state unemployment office. A person loses their unemployment eligibility if they reject a work offer and, in some cases, may have to return money they received in the weeks after the offer.

We've broken down the list of companies that received loans of $150,000 or more in Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott (keep in mind tens of thousands of other Massachusetts companies, whose names were not released Monday, received loans under $150,000 and have to follow the same reporting rules). You can also view a complete list of all Massachusetts businesses that have received PPP loans over $150,000.

Also On The North Shore

Beverly's Black Lives Matter Flag Stolen

A Black Lives Matter flag installed at Beverly City Hall last month was stolen Sunday night.

"The incident is currently under investigation and video of the entrance to city hall is being reviewed," Beverly police officer and department spokesman Mike Boccuzzi said. The flag was ordered by Mayor Mike Cahill after a youth-led Black Lives Matter demonstration in Beverly last month.

Across Massachusetts

Identity Thieves Tried To Steal $158M From MA Unemployment Agency

Organized crime syndicates tried to steal at least $158 million from the Massachusetts unemployment fund since the coronavirus crisis started in March, state labor officials said Tuesday. The Department of Unemployment Assistance said the thieves used stolen identification information to file fraudulent unemployment claims when widespread shutdowns drove jobless claims to record levels.

Another Thing To Worry About: Early Arrival Of Mosquito-Borne Virus

Early detection of the eastern equine encephalitis virus — or EEE — has state health officials worried of a new threat as people flock outdoors for quarantine relief and to avoid potential indoor spread of COVID-19. Two mosquitos in western Massachusetts have already tested positive for the illness, the earliest detection in two decades.

Also:

• Child Care Providers Testify To Challenges of Reopening
• International Students Could Face Deportation: ICE
• Reopening Guidelines Released For Youth Sports

Dave Copeland writes for Patch and can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).