Can I Discharge My PPP Loan in Bankruptcy?
Many sole proprietors in Oak Park and throughout Illinois receive Paycheck Protection Program loans, or PPP loans, in the first few months of the COVID-19 pandemic. Those PPP loans were issued with a possibility of forgiveness in the future if businesses that received the loans used them in particular ways required by the U.S. Small Business Administration (SBA). The PPP loan program has opened again, and sole proprietors and other small business owners were specifically eligible for loans—before larger businesses—between February 24 and March 9, 2021. According to an article in Quartz , the SBA also issued a new rule that ultimately allows sole proprietors and freelancers to obtain larger PPP loans because it “allows entrepreneurs without employees to calculate their loan eligibility using gross income rather than net income, making the loans far more generous, especially for businesses with little or no profit.” What happens when a sole proprietor cannot repay the PPP loan and can...