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 W-2 employees and independent contractors, sought a PPP loan to cover both employees and independent contractors. The SBA granted partial forgiveness for employee-related costs but denied forgiveness the portion of the loan covering independent contractors—ruling that such payments cannot count 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.

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