PPP Update for the Self-Employed SBA Revises Loan Calculation and Eligibility
A new SBA, Interim Final Rule revises loan amount calculations and eligibility to permit self-employed individuals who file Form 1040, Schedule C to calculate their maximum loan amount using gross income. It also removes the eligibility restriction that prevents businesses with owners who have non-financial fraud felony convictions in the last year from obtaining PPP loans and removes the eligibility restriction that prevents businesses with owners who are delinquent or in default on their Federal student loans from obtaining PPP loans.
The changes apply to both First Draw and Second Draw PPP loans. SBA forms have also been updated to reflect this new guidance. The new forms are SBA Form 2483-C (Borrower Application Form for Schedule C Filers Using Gross Income) and SBA Form 2483-SD-C (Second Draw Borrower Application Form for Schedule C Filers Using Gross Income).