Changes to PPP Loans for Self-Employed

The Self-Employed can now be eligible for a larger PPP Loan.


Get your salary paid (and your employees too) through a Paycheck Protection Program loan! New changes have been made to increase funds for the self-employed. These loans can cover up to 24 weeks of wages, rent, and other expenses through a forgivable, 1% interest loan.

The new changes help sole proprietors, independent contractors, and self-employed individuals (those who file a Schedule C for taxes). Previously, PPP calculations for the self-employed were based on a net profit. Now, the program allows the self-employed to use gross income to calculate their loan request, allowing for larger loan requests. If you were previously denied for a PPP loan due to a negative or too small net profit, you may now be eligible.

Here’s a general idea of how to calculate your PPP loan eligibility if you pay taxes through a Schedule C: Avg Monthly Gross Income + Avg Monthly Payroll x 2.5 = Maximum Loan Amount

Calculations can be based on 2019 OR 2020 numbers.

In addition to making improvement for the self-employed, the SBA also expanded access to PPP loans to those previously unable to use the program. These include legal immigrant entrepreneurs who pay taxes but are not U.S. citizens; those in delinquency on student loan payments; and those who have a non-fraud felony but have already served their time.

Understanding Owner Compensation Replacement (OCR):

Because self-employed individuals such as independent contractors and gig workers don’t pay themselves through payroll, the OCR allows them to simply claim a portion (or sometimes all) of their PPP loan to make up for lost income due to COVID-19. Anyone who files with a Form 1040 Schedule C can claim the OCR. It does not matter if you have employees or not. Read more here:

To learn more and apply for a PPP loan, visit Questions can go to

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