The Paycheck Protection Program is still pushing out thousands of dollars to sole proprietors, independent contractors, freelancers, and small business owners. Yes, you might be able to get FREE Business money that you don’t have to pay back! So here is the latest PPP update today.
March 26th Update *PPP deadline extended to May 31 now that the Senate has voted. We are only waiting for President Biden to sign it!
Sole Proprietors and Independent Contractors $20,833 Maximum Loan Amount
Sole proprietors and independent contractors determine their PPP loan amount using their gross income. If you don’t have any employees, the calculation starts with your gross income as reported on line 7 on a 2019 or 2020 Schedule C form. Use either this number, or $100,000, whichever is smaller. Divide this number by 12 and multiply by 2.5 to find your PPP loan amount.
If payroll is being run, take line 7 and subtract the payroll costs in lines 14, 19, and 26. Use a maximum of $100,000. Divide this number by 12 and add it to your average monthly payroll expense. Multiply by 2.5 to find your PPP loan amount. The maximum amount you can get is $20,833.