The new formula instead used gross income as a stand-in for payroll costs, a larger number that doesn't include deductions. Because this measure included deductions, it led to smaller loans and even made some ineligible for funding. For businesses without employees, such as sole proprietors and independent contractors, the SBA was using net profit as a stand-in for payroll costs. Maximum PPP loans for businesses with employees were calculated by using 2.5 times average monthly payroll costs. In February, the Biden Administration made changes to PPP, including updating the loan formula for sole proprietors, leading to bigger loans. Its fast-lane application for such businesses was getting about 100,000 applications per day in the week before funding ran out, said Scammel. Womply was seeing more of the smallest businesses, which are more likely to be owned by minorities and women, apply in the final weeks of the program. "I think we finally had turned the corner and had gained significant awareness among the communities that we've been targeting, primarily very small businesses and minority communities," said Toby Scammell, founder and CEO of Womply, a fintech that matches borrowers with lenders. Ramos was hit especially hard because he is a sole proprietor, one of the smallest kinds of businesses and a group that was specifically targeted in recent changes to the Small Business Administration's program. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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