The White House has just announced a major change to the PPP calculation for Sch. C filers (sole proprietors, gig workers, independent contractors, etc). You can now apply for PPP, based on the gross receipts, rather than the net profit. This opens up eligibility to many more small businesses. The maximum is still based on $100,000 divided by 12 times 2.5 ($100K/12 x 2.5), or $20,833.33. We use a 3.5 multiplier for restaurants and hospitality industries. Also, the exclusivity period for businesses with less than 20 employees starts, Wednesday, Feb 24, 2021.
If you have already received round 1, then you can re-apply for the difference. If you did not apply in round 1, then you can apply now during round 2 for a first draw. The same provisions that originally only applied to farmers and ranchers now applies to all Sch. C filers, as well.
We expect the SBA to put out their IFR on this latest change by the end of next week.
Read the full release here:
