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This page is for community bankers to ask questions, share experiences and learn more about the PPP process.
​This is a peer exchange and not official interpretation or legal consultation.
Please refer to SBA and Treasury for 
official guidance. 

SBA issues new PPP rule, applications

3/4/2021

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​The SBA released its new interim final rule and new application forms implementing Paycheck Protection Program changes for sole proprietors and other borrowers that file IRS Form 1040, Schedule C. An SBA webinar on the updates is scheduled for today.
 
Key Provisions:
  • The new IFR includes a revised loan calculation formula for Form 1040, Schedule C sole proprietors, independent contractors, and self-employed individuals using gross income instead of net income, as advocated by ICBA.
  • The rule spells out the calculation for these borrowers in two ways: those with no employees and those with employees.
  • Schedule C filers using gross income to calculate loan amounts with more than $150,000 in gross income will not automatically be deemed to have made the statutorily required certification concerning the necessity of the loan request in good faith. These borrowers may be subject to a review by SBA of their certifications.
  • The rule also sets aside $1 billion for PPP loans to businesses in this category that do not have employees and are located in low- or moderate-income areas.
  • The higher loan amounts for Schedule C borrowers apply to applications filed after the rule’s effective date. Loan amounts cannot be increased once the loan is disbursed to the borrower, so lenders and borrowers may wish to cancel loans that have not yet been disbursed and reapply using the new Schedule C application form.
  • The rule also includes provisions on small-business owners delinquent on their federal student loans or with prior non-fraud felony convictions and non-citizen small-business owners who are lawful U.S. residents.
 
Resources from SBA:
  • The interim final rule
  • Updated frequently asked questions
 
For Lenders:
  • More Lender Information
  • Updated Lender Application Form
  • Updated Second Draw Lender Application Form
 
For Borrowers:
  • More Borrower Information
  • Updated Borrower Application Form
  • Updated Second Draw Borrower Application Form
  • Borrower Application Form for Schedule C Filers Using Gross Income
  • Second Draw Borrower Application Form for Schedule C Filers Using Gross Income
 
Webinar Today: The SBA is scheduled to hold a Microsoft Teams webinar on these updates at 4 p.m. (Eastern time) today, March 4.
 
More: Additional PPP information and resources are available on the SBA and Treasury sites and ICBA's PPP and EIP News page.
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    Related Resources:
    • ICBA 
      Info and FAQ on SBA PPP
    • ​Treasury FAQ 
    ​OriTrust
    ​

    OriTrust's PPP Fast Application is a powerful bank developed tool that can help its members fast-track PPP lending and is very straightforward and simple to use. It helps with making sure the bank is collecting all the required information and with the ongoing monitoring of information to ensure each borrower obtains loan forgiveness. 
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  • Membership
    • Member Portal Login
    • Associate Membership
    • CCBN Associate Member Directory
  • Education and Events
    • Seminars and Events
    • Webinars >
      • Categories >
        • AUDIT & ACCOUNTING
        • Collections
        • Compliance
        • Directors
        • Frontline New Accounts
        • Human Resources
        • IT
        • IRA
        • Lending
        • Marketing
        • Operations
        • Security & Fraud
        • Senior Management
    • Recorded Webinars
    • Continuing Education
    • Resources >
      • Covid-19 Impact & Best Practices
      • Covid-19 Consumer Info
  • Advocacy
    • Legislative Successes
    • CCBN Policy Engagement
    • From ICBA >
      • From Washington DC
      • From the Top
  • About Us
    • Our Team
    • Board of Directors
    • Contact
    • Press Releases
  • Preferred Service Providers (PSP)
    • PSP Announcements
  • FORUMS
    • PPP Forum
    • Resource Forum