New Changes to PPP Released

New reforms to the second round of Paycheck Protection Program (PPP) loans were recently announced in an effort to give more small businesses access to PPP funding. The changes benefit the smallest of businesses as well as organizations that were not included in the first round of relief. The changes are outlined in the following paragraphs.


As of January 17, 2021, self-employed farmers and ranchers (Schedule F filers) are now allowed to utilize gross income (Schedule F line on Form 1040) of up to $100,000 to qualify for the PPP. Before this change, net income (Schedule F line on Form 1040) was used to qualify.


Sole proprietors, independent contractors and self-employed individuals (Schedule C filers) can use gross income to qualify for the PPP; as with farmers and ranchers, these Schedule C filers previously utilized net income to qualify. These changes are not retroactive for borrowers that have already received a PPP loan.


Small businesses with less than 20 employees have a 14-day window ranging from Wednesday, February 24, 2021 at 9 a.m. ET to Tuesday, March 9, 2021, at 5 p.m. ET to apply for PPP loans. Applications submitted by businesses with less than 20 employees before the exclusivity period will still be processed. During this period, applications from organizations with more than 20 employees will be put on hold to allow for more focus on smaller businesses.


Ask your CPA if you are using the appropriate calculations for PPP relief. Contact us at


Sources & more information:

White House Briefing

SBA Resource

SBA Calculations

SBA Business Loan Program Temporary Changes; Paycheck Protection Program





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