The Payroll Protection Program is available to sole proprietors, independent contractors, and self-employed persons, among other entities. There has been some confusion on this topic and the clarification guidance was released around the same time the first round of PPP money ran out (April 15, 2020). Last Friday (April 23, 2020), there was signed a second round of PPP money, so we wanted to clarify the following:
Sole proprietors, independent contractors, and self-employed persons do not usually have payroll. As a result, the loan size will not be calculated based on payroll reports from your payroll provider. The calculation will be based on your average monthly 1099-MISC or net self-employment income for the past 12 months (limited to $100,000). That amount will be then calculated by the 2.5 times as the maximum PPP loan.
Link Forbes Article – https://www.forbes.com/sites/jasonbfreeman/2020/04/15/self-employed-and-need-a-ppp-loan-the-sba-just-issued-new-guidance-for-you/#6b368bbe6321
