Don’t forget, Covid PPP loans apply to self-employed, as well

With the SBA allocating more funds to the Covid Paycheck Protection Program please give this further consideration if you have not signed up earlier.

As discussed earlier, this loan requires that you apply though your business banker to capture 20% of your 2019 payroll or self-employed net earnings as a forgivable loan.

The deadline to file is June 30, 2020. In three weeks.

The Program also applies to self-employed i.e sole-proprietors that file a Sch C on their family Form 1040 even though the sole-proprietor often does not have payroll.

The self-employed Covid PPP loan is based on 2019 net profit divided by 12, to get a monthly “average” net profit. This number times 2.5 equals your PPP loan amount.


  • You filed your Form 1040 and Schedule C for 2019, where you reported $25,000 in net income. Your PPP loan calculates at $5,208.
    • $25,000 divided by 12 months times 2.5 PPP multiple.
  • As a sole proprietor, the forgivable owner compensation portion of this amount calculates at $3,850 ($25,000 X PPP .154 Multiple)
  • The remaining amount of the loan of $1,358 is forgivable if spent on PPP eligible utilities, rent or mortgage interest.