Summary List Placement
The Biden administration on Monday announced changes to the Paycheck Protection Program (PPP) that will provide more funding for solopreneurs and freelancers.
The update will allow self-employed individuals to apply using gross income, instead of net income or profit. This will automatically increase the total loan amount these business owners are eligible to receive through the Small Business Administration (SBA).
The change is an effort to level the playing field for solopreneurs who made small profits in 2019, if they were profitable at all. Within the first four months of the PPP program, roughly 300 businesses received loans of $99 or less and some got just $1, The New York Times reported.
The SBA will also set aside $1 billion in PPP loans for these types of businesses with no employees and only businesses with 20 or fewer employees can apply for two weeks beginning Wednesday.
How to apply for PPP as a sole proprietor
Moving forward, the SBA will now allow sole proprietor businesses to calculate their maximum PPP loan amount using the gross income line on their Schedule C form.
Most borrowers can receive up to 2.5 times their average monthly payroll costs, but those in the accommodation or food-services sectors can receive up to 3.5 times that amount.
Qualifying salary for each individual is capped at $100,000 annually, according to Brock Blake, founder and CEO of small business loan marketplace Lendio. “Anything you pay yourself over that, prorated for the calculation period, won’t be counted,” he previously told Insider.
Only businesses that were open by February 15, 2020 are eligible to apply.
Previous PPP borrowers can apply for the second draw if they can demonstrate at least a 25% reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same period in 2019. There are alternative calculations for seasonal businesses and businesses started after 2019.
The SBA will only accept applications from businesses with 20 or fewer employees for two weeks beginning Wednesday, February 24 through Tuesday, March 9.
Applications will close on March 31, unless Congress extends the program through another stimulus bill.
SEE ALSO: PPP will only be open to firms with 20 or fewer employees for the next 2 weeks. Here’s how to apply.
SEE ALSO: Experts answer small business questions about applying for PPP
Join the conversation about this story »
NOW WATCH: What makes ‘Parasite’ so shocking is the twist that happens in a 10-minute sequence
Source:: Business Insider
Dustin Johnson highlights | Round 3 | Genesis | 2021
In the third round of The Genesis Invitational 2021, Dustin Johnson recorded three birdies against 3 bogeys to remain even through 13 holes before play was suspended due to darkness. Johnson is 7-under-par for the tournament. The PGA TOUR returns to iconic Riviera Country Club for The Genesis Invitational. Tournament host Tiger Woods will be in attendance but won’t play as he is still recovering from a back procedure last month. World No. 1 Dustin Johnson and defending champion Adam Scott are among the headliners. Notables in the invitation-only field include major champions Brooks Koepka, Bryson DeChambeau, Collin Morikawa, Jordan Spieth, and Francesco Molinari, plus world No. 2 Jon Rahm. Two-time FedExCup winner Rory McIlroy looks to finally lift the trophy at Riviera after holding a piece of the lead Sunday a year ago only to fall to T5. In addition to reigning champ Johnson, FedExCup winners in the field include Justin Thomas, Brandt Snedeker, and Jim Furyk. Here you can find everything you need to stay up to date with the world’s foremost golf tour. Check in for highlights from every tournament plus player profiles, swing analysis and all the greatest shots and amazing moments. Teryn Gregson presents the craziest moments from around the world of golf in ‘Good, Bad & Unusual'.