PPP Changes for Sole Proprietors and Independent Contractors

Lindsey KingMarch 01, 2021Uncategorized

March 1, 2021

With one month left to apply for the second round of Paycheck Protection Program loans, I thought I wouldn’t be writing anything more than a reminder to submit your application. But, here I am again, with yet another change. We have discussed this topic so many times that my kids no longer laugh when I say PPP.

Okay, that isn’t entirely true, they are kids after all. But, in all seriousness, here is some good news for sole proprietors and independent contractors. One of the biggest complaints regarding the PPP (and, this time, you smiled a little imagining a giggling kid) was that loan amounts were based on net profits, and, for many in business for themselves, this resulted in no funds or a very small amount.

In order to change that and get funds to those who really need it, loan amounts for sole proprietors and independent contractors will now be based on gross income. But before you jump to finish that application that has been staring at you, you might want to wait to be sure that your lender has the details on how to process this change. They are expected to receive this information in the next couple of weeks.

And that leads me to the bad news: if you have already applied, there is no way to go back and change to the new guidelines. If you have already received funds, you cannot return them and reapply.

I will be watching for confirmation that lenders have the information they need to implement this change, and I promise to let you know as soon as I do. So, if you haven’t already, follow me on Facebook or Instagram for updates as soon as I have them.

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