Updated PPP Applications and Guidance for Sole Proprietors
On March 3, 2021, the U.S Small Business Administration published updated guidance reflecting the new changes to the Paycheck Protection Program.
This interim final rule allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income, removes the eligibility restriction that prevents businesses with owners who have non-financial fraud felony convictions in the last year from obtaining PPP loans, and removes the eligibility restriction that prevents businesses with owners who are delinquent or in default on their Federal student loans from obtaining PPP loans.
Application links can be found at the bottom of this page.
New Rules for PPP, Now Accepting Applications
As a result of the Consolidated Appropriations Act 2021, the SBA and Treasury announced the Paycheck Protection Program (PPP) has re-opened for additional funding.
Key takeaways from these two rules and guidance:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
- For certain borrowers the original PPP loans may be increased if new rules apply and the loan has not already been forgiven
- EIDL advances are no longer deducted from PPP forgiveness; lenders will receive a reconciliation payment for loans already forgiven
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Contact a lender at your local branch to learn about qualifications and program details.
Salina – Santa Fe Branch | 785-825-1621
Salina – Ohio Branch | 785-452-9975
Lincoln | 785-524-4458
Lindsborg | 785-227-8830
Tescott | 785-283-4217
FIRST DRAW APPLICATION OVERVIEW:
FIRST DRAW (SCHEDULE C) APPLICATION:
FIRST DRAW APPLICATION:
SECOND DRAW APPLICATION OVERVIEW:
SECOND DRAW (SCHEDULE C) APPLICATION:
SECOND DRAW APPLICATION: