The Small Business Administration (SBA) initially made it hard for self-employed to obtain PPP loans of reasonable amounts by requiring them to use net profit on line 31 of Schedule C as the beginning point to compute the qualifying loan amount. Many self-employed have little or no net profit after deducting business
Recently, the SBA changed its rules to allow self-employed to begin the calculation with either net profit on line 31 or gross income on line 7. Using gross income instead of net profit should allow many self-employed to increase PPP loans for which they qualify. See the revised PPP application.