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[Mike Pyle]

Among changes proposed today by the Biden administration to the PPP program, expected to become effective this week. The change from using net income to gross income for calculating the loan amount is major, affecting any individual that was limited or excluded because of having substantial business deductions on schedule C.

-Starting on Wednesday and lasting for 2 weeks, only businesses with 20 employees or less can apply for the program. After the 2 weeks, it will be back open to larger businesses.

-The calculation for self-employed individuals, sole props, etc appears to be changing (those reporting on Schedule C). Details haven't fully been announced, but it appears likely that the calculation would be based on gross income instead of the net profit. More to come on this as details are worked out. Likely would still max out at $20,833 for someone without employees.

-Those who have defaulted on student-loan debt were previously excluded from the program. This would be changed under the new rules and allow those who have defaulted to get funding and get forgiven.

-The provision that disallowed a convicted felon from receiving PPP would be removed (unless related to fraud).

-Clarification that documented legal residents who are non-U.S. citizens can apply for PPP using their ITIN.

[Mike Pyle]

This Forbes article has a little more detail.

https://www.forbes.com/sites/rhettbuttle/2021/02/22/president-bidens-changes-to-ppp-are-a-big-win-for-main-street-and-business-owners-of-color-five-key-changes/?sh=5301c6db2881

[ProSoundWeb Community]