New PPP Eligibility Rules Expand Relief For Gig Workers/Self-Employed Artists
Changes to PPP eligibility in March opened up the potential for self-employed artists to gain larger forgivable loans under the PPP. The SBA previously used net profit as a stand-in for payroll costs for businesses with a sole employee. The March change allows those who are self-employed to use gross income, which usually qualifies them for a larger PPP loan.
The SBA also released two new application forms for sole proprietors with the new calculation: Form 2483-C, for those applying for a first draw PPP loan, and Form 2483-SD-C, for those applying for a second draw loan. SBA PPP Website. In order to secure the more favorable loan amount based on gross income for self-employed individuals, schedule C filers must make sure your lender supplies you with the correct forms listed above.
You can apply through any existing U.S. Small Business Administration (SBA) 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
Triangle ArtWorks is working hard to create a live workshop on this issue with staff from the Arts Action Fund. Watch our social media for more information.
Be aware that that PPP applications will only be accepted until May 31, 2021. The PPP program recently received an extra $284 billion, but as of April 5, there was $68 Billion left. So do not delay in applying!