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Paycheck Protection Program (PPP) Loan Guide For Sole Proprietors [Updated For PPP2]

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Chris Motola

Chris Motola

Finance Writer at Merchant Maverick
Chris Motola is a writer, programmer, game designer, and product of NY. These days he's mostly writing about financial products, but in a past life he wrote about health care and business. He's a graduate of the University of Central Florida.
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8 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Cameron M.

    HI! I hope you can help me. I would like to apply for a round 1 PPP loan. I have a consulting business that is an S-Corp, there are no employees, no payroll. I file a 1040 Schedule C. My question is when I fill out the PPP application do I complete the application with the business as the applicant (using business EIN#) or as an individual (using my SS#)? Thank you very much-

      Jessica Dinsmore

      Hi Cameron,

      You should use your EIN if you have one.

        Doreen

        I have a sole proprietorship but file Schedule E. Why is schedule E excluded from the PPP when I meet all the other criteria and schedule C is accepted. I have definitely incurred loss from the pandemic but profit prior to it. An explanation would be appreciated.

          Jessica Dinsmore

          Hi Doreen,
          We havenโ€™t come across an official explanation from the SBA, but the PPP is a very targeted program. While passive income streams have certainly been affected by the pandemic, they arenโ€™t the focus of the program. My apologies; I know this has to be extremely frustrating.

            guy leone

            please respond

              This comment refers to an earlier version of this post and may be outdated.

              Jessica Dinsmore

              Hi Guy,

              What can we do for you?

                This comment refers to an earlier version of this post and may be outdated.

                Jeremy Nguyen

                Hello! I would like to ask a question. I own a sole proprietorship business with employees. My salary is the profit of the business ( I’m not on the payroll ). I got approved PPP based on payroll, so how do I pay my self? Or May I use schedule C of 2019 and social security number to apply another loan for my compensation? Your answer is greatly appreciated.

                  This comment refers to an earlier version of this post and may be outdated.

                  Jessica Dinsmore

                  Hi Jeremy,

                  Owner compensation up to $100k is a legitimate, forgivable expense for sole proprietorship PPP loans and is calculated into the total amount received; you cannot apply for a second/separate PPP loan. I hope that clears things up for you!

                    This comment refers to an earlier version of this post and may be outdated.

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