With just over $50 billion still available in the Paycheck Protection Program, Senate lawmakers this week introduced a new bill that would make good on a Biden administration promise to get more money into the hands of solopreneurs, Inc. reports.
The bill, dubbed the PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act, would allow sole proprietors, independent contractors, and the self-employed to retroactively apply for more money through the forgivable loan program. This proposed revision to the PPP follows the Biden administration’s Feb. 22 request that the Small Business Administration change the formula these borrowers use to calculate their PPP loans. Rather than using net income, which removes taxes and other expenses, these borrowers may now use gross income, which allows them to book higher loan amounts.
But the SBA concluded in a March 3 notice that those who applied for a loan prior to the change would not be eligible for retroactivity. This bill would counter that.
According to a summary of the proposed law, retroactivity would go back to Dec. 27, 2020, the date of enactment of the Economic Aid Act. SBA Administrator Isabel Guzman would be required to create a process to allow eligible applicants to request a recalculation of the amount of a covered loan and receive a payment that is equal to the difference between the amount of the covered loan originally received by the eligible applicant and the amount of the covered loan. Read the full story.