Client just notified me that she applied for and received a PPP loan last night. She is self employed. The self employment started in December of 2019 - she made a little over $4,000 in that month. The bank is giving her roughly $10,000 based on her Schedule C income for the first two months of 2020.
1. is that allowable? I mean, i guess it must be, because that's what the bank did.
2. i thought the forgiveness calculation was based on the 2019 Schedule C - when i last looked at this it was the net schedule C income multiplied by 8/52. so even if the bank gave her money based on her 2020 income, will her forgiveness be limited to the 2019 Schedule C calculation?
Brian Davis