Some lenders (especially banks) require PPP applicants to have a business bank account. They can either open a business bank account or choose a lender that doesn`t have this requirement. If you are self-employed and meet all other requirements, you should be eligible for a PPP loan. My husband`s cell phone still has a Colorado number, but we live in Mississippi; Will this hinder the lending process as it is tied to local lenders? Paycheque Protection Program (PPP) loans aren`t just for traditional small businesses – independent entrepreneurs, independent contractors and freelancers can take advantage of this free, tax-free financing. Daniel – if you qualify as described in this story, you can apply. If you reported net income in your Schedule C for 2019 or 2020, use this information to calculate the amount of your loan. Nav connects applicants with lenders that grant PPP loans. Question about the meaning “affected”. I am an independent contractor (LLC), applied, has been approved and has recvd the loan.

Was in a contract, which of course ended on 31.03.20. I had another contract (4/1), but a short-term contract (6mo). With the slowdown, I was very concerned about what might happen to the contract and/or that I might not get another one in the foreseeable future – basically very uncertain as things were changing almost every day. Fortunately still in the contract, but I wonder if it would cause a problem or if I didn`t need credit? The total amount is a few thousand more than 2 months of my pay (which is just myself), so it meets the 75% pay requirement. I just wanted to know if there is an audit for a contract (which can be terminated at any time even under normal circumstances). An idea? The SBA has not published guidelines on how to calculate PPP eligibility for self-employed individuals who file Schedule C and started their business in 2020. I could imagine that lenders just don`t know how to handle this because the SBA has not issued any guidelines. I suggest that you contact your elected representatives in Washington and inform them of the problem you have with the application since it is a federal program. The principle of the paycheck protection program is simple: the SBA supports loans to borrowers who need salary assistance due to the economic hardship caused by the coronavirus.

Previously, only G/C businesses, tribal businesses, and businesses with up to 500 employees could apply for loans when the program was first launched last April. Now, sole proprietors, independent contractors and self-employed workers can also apply. Now, virtually any type of small business is eligible to apply for the federal ppp loan. It remains to be seen how quickly lenders and the SBA will be able to process these loan applications and disburse the funds to businesses in need. Jimmy – since you`re an independent contractor, I assume you report your business income to the IRS on Schedule C. If so, apply using your 2019 or 2020 Schedule C amount. Line 31 is your net profit and is used to calculate the amount of your loan. The calculation is in the article. That said, the White House is expected to release more information for freelancers today — February 22, 2021 — and we`ll update the article when we have details. That said, the White House announced today (22.02.21) that there will be changes for freelancers and independent contractors that may be favorable, but we don`t have any details yet.

Unfortunately, the program ran out of funds on May 4. Now, most lenders no longer accept new applications. However, there is still funding through minority deposit-taking institutions (DIs) and Community Development Finance Institutions (DFIs). These facilities generally provide funding to underserved communities. If you are eligible, you will find a participating IFDC here. Good luck! Gil – The lenders Nav works with accept these requests. You can apply here to get a PPP lender. You cannot include payments you make to 1099 contractors as payroll. They are not employees – they are contractors and can apply themselves. So, if you don`t have employees, follow the instructions in this article for freelancers and not employees.

As a first-time applicant, you do not have to prove the reduction in gross income. You can apply based on the 2019 or 2020 Schedule C net profit. Explore your other loan options with our top ten lenders or visit the Lendio Credit Market to get the best deals for your business. I am self-employed. I have completed the PPP form and I have a 1099 and a Schedule C. How do I submit when so many certified lenders are no longer processing applications? Please advise. Thank you. I asked a question some time ago, but somehow it disappeared here, I am self-employed without employees. I read here some time ago that a person who shows a 25% discount in a given month might qualify, is that true and I didn`t get a first p p p loan. I also saw here that a person had gone to a few different lenders and no one had heard of the 25% discount, you can match me with someone who knows. Cuz that`s how I would do it.

I have bank records and everything that shows my business income for 2020. The Paycheque Protection Program (PPP) – a federal government loan program designed to help small businesses affected by the coronavirus pandemic – was made available to independent contractors and the self-employed on April 10, 2020. As of April 3, 2020, PPP loans have become officially available to small business owners (including sole proprietors) through SBA-accredited lenders. Now, the self-employed and independent contractors also have the right to apply for these loans. If you`re applying for a PPP loan as an independent contractor or freelancer, you`ll need to gather the necessary paperwork to get your loan off the ground. In the eyes of the IRS, you are treated as a sole proprietor. You will need your Schedule C on line 31 based on your 1099 of your 2019 or 2020 income tax return (depending on what was used to calculate the loan amount). This number is your net profit and can be used to determine the salary. You can also add up your 1099 from last year and divide them by 12 to get a rough monthly estimate.

Doug – You`re not the only one who notices these discrepancies. This wording comes from the CARES Act itself. SBA policy later stated that you cannot include 1099 contractors on your payroll (unless you are an entrepreneur applying yourself). I am an independent insurance agent and I also use my personal bank account for my business bank account. I launched my application, but there was a question/statement asking that my business account not contain any personal use, which is the case with mine. Will this prevent me from applying for a PPO loan? This is the first time I have applied. Congratulations on the approval of the EIDL! You can apply for both PPP and EIDL. The demand for PPPs for the self-employed opened up later than for other types of businesses. You can definitely try your bank and fill out a QuickConnect form with Nav (just go to Nav.com) to be associated with lenders that grant PPP loans.

We recommend that you do this quickly. If you are assigned to a lender, be sure to complete the complete application as soon as possible. Funding will open on Monday and is expected to go quickly. Below, we`ll walk you through everything you need to know to get an SBA loan as an independent contractor or independent contractor. The Paycheque Protection Program (PPP) allows lenders to offer low-interest loans that can be granted at 100% in certain circumstances. Independent contractors and self-employed individuals negatively impacted by the COVID-19 pandemic can apply for these loans as of April 10, 2020. The requirements are simple. You must have been operational on February 15, 2020, your business must have been damaged by the COVID-19 pandemic, and you must submit the required documents with your loan application. However, it seems that it depends on the status of your loan if you can get a higher loan amount. The information that the SBA provides to lenders indicates that a lender may cancel a PPP loan application and submit a new application on behalf of the borrower to the point where the loan funds were paid to the borrower, but a Form 1502 (Loan Report) was not submitted by the lender to the SBA.

(The borrower should first repay the loan.) Is there a reason in the future why you can`t charge your independent contractor business through your LLC? Or are you considering depositing the funds you earn as an independent contractor into your LLC account so that everything goes through the LLC? You may want to talk to your accountant to determine what makes sense. The most common question about independent PPP applications is the calculation of payroll. Many self-employed, sole proprietorships, and independent contractors report different profits or seasonal fluctuations in the business each month, making it difficult to determine a fixed monthly payroll. .