An important change in this IFR is a revision to how the maximum PPP loan is calculated for sole proprietors who file an IRS Form 1040 Schedule C or F, and, as of March 3, 2021, have yet to complete an application for a first or second PPP loan. Previously, PPP loans for those self-employed individuals were based solely on net income, resulting in smaller approved loan amounts. Net income does not consider fixed and other business expenses that keep small businesses in operation. Now, PPP first and second-draw loan applicants can use gross income to calculate the maximum loan amount, which could expand loan funding for independent contractors, self-employed individuals, and sole proprietors. The SBA and Treasury also ruled that PPP loans previously approved may not use the new formula to increase their established loan amounts ...READ MORE
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