April 17, 2020
The U.S. Small Business Administration (SBA) has issued supplemental guidance for the Paycheck Protection Program (“PPP”) for self-employed individuals who will file a Form 1040 Schedule C to report their self-employment income in 2019. This Interim Final Rule entitled “Business Loan Program Temporary Changes; Paycheck Protection Program – Additional Eligibility Criteria and Requirements for Certain Pledges of Loans” provides more detailed guidance on the PPP criteria for sole proprietors and business partners, explaining: “if you are a partner in a partnership, you may not submit a separate PPP loan application for yourself as a self-employed individual. Instead, the self-employment income of general active partners may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership.”