A new Paycheck Protection Program (PPP) rule was issued last week by the U.S. Small Business Administration (SBA). This ruling allows individuals who are self-employed and file Form 1040, Schedule C, Profit or Loss From Business, or Schedule F, Profit or Loss from Farming, to calculate their maximum loan amount using gross income instead of net profit. Although somewhat unfair, the SBA and Treasury Department have ruled that Schedule C and Schedule F filers who have been approved for a PPP loan using net profit may not resubmit their application using gross income.
The current deadline for applying is March 31, 2021, although, the American Institute of Certified Public Accountants has asked Treasury to consider an extension of this deadline.
Click here to read more about this new ruling. Source: Journal of Accountancy