PPP Loan Program Eligibility Update – Revisions for Schedule C Filers
Join the United Regional, Waltham, and Orleans Chambers of Commerce, and the Massachusetts Small Business Development Center (MSBDC) for a presentation from Ili Spahiu, Lead Lender Relations Specialist, with the U.S. Small Business Administration, about the Paycheck Protection Program. Many sole proprietors had been effectively excluded from the PPP, especially those with very little or negative net profit. Businesses that file Schedule C have higher concentrations of ownership by members of underserved groups. An analysis by the SBA Office of Advocacy of Census data found that firms with no employees are 70% owned by women and minorities, compared to 40% for businesses with employees. SBA recently determined that changing the calculation for sole proprietors, independent contractors, and self-employed individuals will reduce barriers to accessing the PPP and expand funding among the smallest businesses. SBA used discretion to establish an alternative calculation methodology for payroll costs for sole proprietors and independent contractors. The term “income” as used in the definition of payroll costs for sole proprietors and independent contractors may be construed broadly to encompass a borrower’s net income and a borrower’s gross income. Are you newly eligible for a PPP Loan? Join us on March 18th and learn from the experts. There will be a Q & A session at the end of this virtual event. Registration is required.