SBA ISSUES PPP GUIDANCE ON SCHEDULE C FILERS
Following up on President Biden’s directive to increase availability of Paycheck Protection Program (PPP) funds to small businesses, the SBA has issued guidance potentially increasing the amount a taxpayer with a Schedule C will be able to borrow.
Previously the amount of the loan for Schedule C borrowers was based on the net income of the Schedule C. Many small businesses that operate as Schedule Cs were either eligible for small loans or were not eligible for a loan because the expenses during the year were greater than the income.
Under the new rules, Schedule C borrowers can compute the amount of their loan based on their gross income or net income. Subject to the applicable loan caps, the loan amount is computed as follows… Read more