The U.S. Small Business Administration (SBA) issued new Paycheck Protection Program (PPP) rules that allow self-employed individuals who file Form 1040, Schedule C, Profit or Loss From Business, 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. Some of these applications are very time-sensitive for those who employ less than 20 people so we recommend that you contact your bank as soon as possible to determine your eligibility and proper application.