Since IRS has decided that the loan is non-taxable and the qualified expenses paid with the proceeds are deductible, it is a great double dip.

However, what happens with the Schedule C filer with no employees? He qualified for the loan so are we now allowed to take a Sched C deduction for the Owner Compensation Replacement he paid himself?

Same thing with General Partners in a Partnership with no employees?

I have looked high and low for something on this and have found nothing.