SBA Changes to PPP Loan Amount Calculation and Eligibility

SBA has released an update to the PPP Interim Final Rule that implements the Biden Administration’s recent PPP changes to aid the smallest businesses and the self-employed. Changes to the rule include allowing self-employed individuals who file a Form 1040, Schedule C calculate their maximum loan amount using gross income instead of net profit, and removing the eligibility restriction preventing businesses with owners who have non-financial fraud felony convictions in the last year from obtaining PPP loans.
SBA has also released a new PPP application, Form 2483-C, Paycheck Protection Program Borrower Application Form for Schedule C Filers Using Gross Income. Learn more from the Journal of Accountancy.