The SBA has issued Paycheck Protection Program (“PPP”) guidance for self-employed individuals who file an IRS Schedule C with their Form 1040 to report their self-employment income. The guidance comes in the form of an Interim Final Rule that fleshes out the PPP criteria for a self-employed borrower, including the rules for eligibility, calculating the loan amount, and loan forgiveness.
The CARES Act established the PPP as a loan initiative designed to provide much-needed cash to small businesses and self-employed taxpayers during the coronavirus crisis. Under the PPP initiative, the full principal amount of a loan and any accrued interest may be forgiven if the recipient uses the funds on specified expenditures during an 8-week period following the disbursement of the loan funds.
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