Sole proprietors, self-employed, and gig workers can apply for more PPP money than was allowed under the program in the past. New rules released by the U.S. Small Business Administration on March 3 use gross income as the base calculation when determining the amount a solopreneur can access. Previous rules used net income, which often resulted in just a few hundred dollars of PPP loan eligibility for self-employed workers.

The new calculation will benefit thousands of New Mexico sole proprietors and self-employed workers who saw their revenue plummet during the height of the pandemic. While the maximum forgivable amount is still pegged at just under $21,000, the new rules make applying worthwhile.

Payroll Protection Program (PPP) loans carry an interest rate of 1 percent with a maturity of 5 years. No collateral or personal guarantees are required, and the loan is forgivable if the money is used for eligible expenses.

DreamSpring and LiftFund, two nonprofit lenders that are authorized to facilitate PPP loan applications, have updated their applications to reflect the new rules that took effect on March 3. The program is slated to end on March 31, 2021; however, if the U.S. Congress acts, the deadline could be extended. The PPP fund is not expected to be depleted by the current deadline.

First Draw PPP Loan details.

Businesses, nonprofits, sole proprietors, self-employed, and gig workers in the southern part of New Mexico can apply at LiftFund. DreamSpring is accepting applications from anywhere in New Mexico, and Century Bank is accepting applications in the communities it serves. (Note: Century Bank currently says it will stop accepting applications on March 19, however, this may change if the U.S. Congress extends the PPP program to May 31, as projected.)