On April 14, 2020, the Small Business Administration published a new Interim Final Rule that provides helpful guidance for self-employed individuals who operate businesses as sole proprietors.

The new SBA Interim Final Rule explains how much a self-employed person who operates a business but who reports his or her net self-employment income on Schedule C of Form 1040 is eligible to borrow under the Paycheck Protection Program.

The new Rule also explains how much that self-employed borrower can "pay" himself or herself with the loan proceeds as replacement compensation and also how much of the loan can be forgiven and what type of documentation will be required to qualify for loan forgiveness.

Finally, the new Interim Final Rule clarifies the type of documentation an applicant for a PPP loan who is a self-employed person must provide to the bank in order to qualify for a PPP loan.

This podcast episode discusses how a self-employed business owner with no employees can document his or her PPP loan application, how much the borrower is eligible to borrow under the program, how much the borrower may wish to borrow, and how loan forgiveness works.