PPP Update for Individuals
This post was originally an email sent to a mailing list by Michael T. Strickland.
Friends,
Attached is a good overview from Inc. Magazine regarding the new PPP rules.
I urge you to read it.
I know this will assist many of you individuals, sole proprietors, independent contractors and self-employed people.
Good morning,
If you're a sole proprietor, independent contractor, or self-employed entrepreneur, now is the best time to apply for a Paycheck Protection Program loan.
Today, the Small Business Administration is expected to release an update to the sole proprietor version of the PPP loan application, accounting for a rule change that allows companies with no employees to get more money from the PPP than they were previously allotted. Companies with fewer than 20 employees also now have an exclusive window in which to apply for funds, through March 9th. The changes are part of a spate of revisions requested by the Biden administration aimed at making the now $284.5 billion forgivable loan program more equitable and accessible to the smallest businesses.
Here’s how it’ll work: Starting as soon as Monday, sole proprietors, independent contractors, and self-employed individuals may apply for a PPP loan equivalent to the figure listed on line 7 of their Schedule C form--that is, their gross income. Previously, businesses needed to list their net income, or line 31 on the form, which removes taxes and other expenses from the calculation.
There’s massive upside for these businesses. But as with all things PPP, it’s not all clear cut. Read our story to learn what’s involved, and how to make the most of the opportunity.
Best of luck in moving forward with relief actions.
Thank you all for everything you do.
Onward and Upward.
Michael T. Strickland
____________________________________
Michael T. Strickland
Bandit Lites, Inc.
Chair and Founder
2233 Sycamore Drive, Knoxville, TN 37921
865.971.3071 office
865.599.1700 mobile