Bloomberg Tax
Feb. 23, 2021, 9:46 AM

PPP Loan Changes Expected to Open Doors for Smallest Businesses

Lydia O'Neal
Lydia O'Neal

Self-employed business owners and contractors are slated to get increased access to forgivable pandemic relief loans under forthcoming rule changes announced Monday.

Currently, contractors, sole proprietors, and self-employed people have to calculate their Paycheck Protection Program loans using their net profits, which lowers the amount they are eligible to receive.

The Small Business Administration will soon issue an interim final rule allowing these individuals, whose entities make up the vast majority of U.S. businesses, to instead use their gross income to calculate their loans, a White House official told Bloomberg Tax late Monday. Earlier, the White House announced several ...

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