The U.S. Small Business Administration (SBA) has issued new Paycheck Protection Program (PPP) rules that allow self-employed individuals who file Form 1040, Schedule C, to calculate their maximum loan amount using gross income instead of net profit.
The change opens the door for larger loans to self-employed individuals, many of whom don’t record much, if any, net profit on their Schedule C.
The SBA outlines the calculation change in a 32-page interim final rule published Wednesday, March 3. The SBA also released an updated set of FAQs and six updated or new application forms. Learn more.