For Schedule C businesses with no employees you get to use the new Form 3508EZ which is pretty simple. I would expect that you should be getting 100% forgiveness.
The PPP loan was based on your 2019 Schedule C net income / 12 * 2.5 months. So 2.5 months of profit was your PPP loan amount. The new EZ loan forgiveness says that if you use the 24 week covered period then your deemed payroll cost is determined to be 2.5 months of profit.
So your PPP loan was 2.5 months of 2019 profit and your payroll cost is 2.5 months of 2019 profit. That means your PPP loan should equal the payroll costs and you will get 100% forgiveness. This is great news and filling out the EZ loan forgiveness application should be quite simple and basically just include attaching a copy of your 2019 Schedule C again.
It sure took us a while to get here, but for a Schedule C with no employees, they should be getting 100% forgiveness if the PPP loan amount was properly calculated.
You can find a copy of the EZ loan forgiveness application here and use that EZ loan forgiveness application to get 100% forgiveness through the bank where you got the PPP loan.
For more guidance and information, please contact any our Leadership Team.