1. PPP Loan Forgiveness Help Center
  2. Forgiveness Process Questions

If I am a sole proprietor, independent contractor, or self-employed individual, can I increase my loan amount in light of the SBA's updates to loan amount calculations?

The SBA guidance released on March 3 after an Executive Order from President Joe Biden changed the way maximum loan amounts are calculated for sole proprietors, independent contractors, and self-employed individuals so that they are based on gross income rather than net profit. The new calculation methodology allows these borrowers to access larger loans by revising the PPP’s funding formula for these categories of borrowers.

Unfortunately, the SBA rules dictate that if you already have a PPP loan (specifically, if your PPP loan was approved by the SBA prior to March 3, 2021), lenders are unable to cancel your loan and allow you to reapply for an increased loan amount.

The SBA guidance on this rule reads:

"A borrower whose PPP loan has already been approved as of [March 3, 2021] cannot increase its PPP loan amount based on the new calculation methodology."

To find out more, you can find the contact information for your regional SBA office here.