New SBA PPP Loan guidance for sole-proprietorship and partnerships was issued late on 4/14/20.
The 2019 Sch C is required for determining the amount of the loan, even if you have not filed it yet. Line 31 net profit (max of $100) + employee payroll costs (ea max @ $100k) divided by 12 multiplied by 2.5.
Employee costs are: Medicare Wage + pre-tax employee contributions for health ins/fringes excluded from MC Wages + EmployER health insurance contribs for employees (not SE owner) + SUI taxes.
Read for all of the stipulations like…
• Limit use of proceeds to those types of allowable uses for which the borrower made expenditures in 2019.
• Owner compensation replacement, calculated based on 2019 net profit with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit
Partnerships should be applying on the partnership level.
Also see: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
