Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

Today's changes to PPP mean sole proprietors and freelancers could be eligible for more emergency funds

Published by Business Insider on Tue, 23 Feb 2021


<p><img src="https://static1.businessinsider.com/image/603431d238aa9f00185e0569-2400/GettyImages-975816152.jpg" border="0" alt="Young female entrepreneur using laptop at desk in office" data-mce-source="Maskot/Getty"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>The Biden administration on Monday announced <a href="https://www.businessinsider.com/ppp-loan-rules-change-biden-small-business-loans-covid-pandemic-2021-2">changes to the Paycheck Protection Program</a> (PPP) that will provide more funding for solopreneurs and freelancers.&nbsp;</p><p>The update will allow self-employed individuals to apply using gross income, instead of net income or profit. This will automatically increase the total loan amount these business owners are eligible to receive through the Small Business Administration (SBA).</p><p>The change is an effort to level the playing field for solopreneurs who made small profits in 2019, if they were profitable at all. Within the first four months of the PPP program, roughly 300 businesses received loans of $99 or less and some got just $1, <a href="https://www.nytimes.com/2021/01/11/business/small-businesses-ppp-covid.html">The New York Times</a> reported.&nbsp;</p><p>The SBA will also set aside $1 billion in PPP loans for these types of businesses with no employees and only businesses with 20 or fewer employees can apply for two weeks beginning Wednesday.&nbsp;</p><h2><strong>How to apply for PPP as a sole proprietor</strong></h2><p>Moving forward, the SBA will now allow sole proprietor businesses to calculate their maximum PPP loan amount using the gross income line on their Schedule C form.</p><p>Most borrowers can receive up to 2.5 times their average monthly payroll costs, but those in the accommodation or food-services sectors can receive up to 3.5 times that amount.&nbsp;</p><p>Qualifying salary for each individual is capped at $100,000 annually, according to Brock Blake, founder and CEO of small business loan marketplace Lendio. "Anything you pay yourself over that, prorated for the calculation period, won't be counted," he <a href="https://www.businessinsider.com/ppp-how-to-apply-faq-experts-answer-paycheck-protection-program-loans#operating-a-sole-proprietorship-">previously told Insider</a>.&nbsp;</p><p>Only businesses that were open by February 15, 2020 are eligible to apply.</p><p>Previous PPP borrowers can apply for the second draw if they can demonstrate at least a 25% reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same period in 2019. There are alternative calculations for seasonal businesses and businesses started after 2019.</p><p>The SBA will only accept applications from businesses with 20 or fewer employees for two weeks beginning Wednesday, February 24 through Tuesday, March 9.&nbsp;</p><p>Applications will close on March 31, unless Congress extends the program through <a href="https://www.businessinsider.com/stimulus-democrats-efforts-approve-biden-rescue-plan-within-month-march-2021-2">another stimulus bill.</a></p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/ppp-aid-for-small-businesses-whats-different-this-round-2020-12" >PPP will only be open to firms with 20 or fewer employees for the next 2 weeks. Here's how to apply.</a></strong></p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/ppp-how-to-apply-faq-experts-answer-paycheck-protection-program-loans" >Experts answer small business questions about applying for PPP</a></strong></p><p><a href="https://www.businessinsider.com/changes-to-ppp-loans-solopreneurs-freelancers-report-revenue-income-2021-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/why-gucci-clothes-racist-blackface-sambo-2019-2">Why these Gucci clothes are racist</a></p>
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs