My issue is the disparity between employees and self-employed folks.

If I'm a Sch C filer with no employees, my PPP money is based on my net earnings and is tax-free. I can go spend that tax-free money however I want, vacation, a new boat, hookers & blow, etc.

If, instead, I have 25 employees and their payroll was used to determine the PPP loan, then I'm paying payroll with tax-free money so I'd be double dipping if I got the money tax-free and then also got the deduction for the expenses.  But the employees don't get the money tax-free so they get a W-2 at the end of the year and the paychecks they used to buy a boat are after-tax.