You didn't have to provide Schedule C- you could have just given W3 which doesn't differentiate between owner and employee...you would have received 2.5X payroll regardless of who it was paying.
If the owner received W-2 Income he should be eligible even if the Schedule C showed a loss.
Line 9: Enter any amounts paid to owners (owner-employees, a self-employed individual, or general partners). This
amount is capped at $15,385 (the eight-week equivalent of $100,000 per year) for each individual or the eight-week
equivalent of their applicable compensation in 2019, whichever is lower.
orgiveness amount on the PPP loan.
The Administrator, in consultation
with the Secretary, determined that it is
appropriate to limit
self-employed
individuals’ (who file a Form 1040
Schedule C) use of loan proceeds to
those types of allowable uses for which
the borrower made expenditures in
2019. The Administrator has
determined that this limitation on
selfemployed individuals who file a Form
1040 Schedule C is consistent with the
borrower certification required by the
Act;