Whether payments to independent contractors can be considered 'payroll costs' under the Paycheck Protection Program's statutory definition

Congress enacted the Paycheck Protection Program to fund “ payroll costs, ” defined to include “ the sum of payments of any compensation with respect to employees ” and “the sum of payments of any compensation to or income of a sole proprietor or independent contractor. ” Seville Industries, a small business with both W2 employees and independent contractors, sought a PPP loan to cover both employees and independent contractors . The SBA granted partial forgiveness for employeerelated costs but denied forgiveness the portion of the loan covering independent contractors —ruling that such payments cannot c ount as “ payroll costs. ” The district court and Fifth Circuit affirmed. The question presented is whether “ the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self employment, or similar compensation ” includes payroll costs for a business’s independent contractors.