The goal is to keep small business owners paying their employees so they can continue contributing to the economy, even if the business must pause operations due to shelter-in-place orders. Consultants and banks are encouraging self-employed workers and independent contractors to apply as soon as possible. PPP Loan Guidance for Independent Contractors and Self-Employed Individuals. The Coronavirus has changed everything, hasn’t it? Independent contractors and self-employed individuals could begin applying for Small Business Administration loans under the Payroll Protection Program as of Friday, April 10. The calculation will be made as follow: The rule clarifies that self-employed individuals who filed Schedule C with their federal income taxes and were operating on Feb. 15, 2020, are eligible for … Apr 9, 2020 | Finance, Government. I am a 1099 independent contractor , and I have always run my business through my personal checking account since 2004. PPP Loans for 1099 Independent Contractors. April 3rd marked the opening day for small businesses to apply for PPP loans, … We created a comprehensive, comprehensible guide all about PPP loan forgiveness for the self-employed, sole proprietors, and independent contractors. Loans can be for up to 2.5 times your average monthly payroll costs (or earnings as an independent contractor). Limiting forgiveness to 8 weeks of net profit from the owner's 2019 Form 1040 Schedule C is … (1) As a company, you may not include payment to contractors for purposes of calculating the total amount you are eligible for under the PPP, nor can they be included in … You are eligible to apply for a PPP loan as an independent contractor or self-employed individual who has been or will be harmed by the pandemic if all of the following are true: 1. You can include aid such as the Paycheck Protection Program (PPP) in that list of things you wouldn’t have expected a gig worker could apply for. On an individual employee basis, the payroll costs are capped at $100,000. On April 10th, 2020, the second phase of the CARES (Coronavirus Aid Relief and Economic Security) Act went into effect, and independent contractors and the self-employed can apply for their share of the Paycheck Protection Program (PPP) loans available to businesses impacted by the coronavirus pandemic. It’s not often you think of SBA Loans as an independent contractor for gig economy apps like Grubhub, Doordash, Uber Eats, Postmates, Lyft and others. The rest of the middle column discuss the intent of PPP in relation to us as Independent contractors and forgiveness. " My personal experience applying for the SBA PPP loan as a contractor with Grubhub, Uber Eats, Doordash and Postmates. This article will be updated as more information is made available. Answer: Sole proprietors, independent contractors, and self-employed individuals who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form … Problems with PPP loans—ranging from eligibility to administration to inadequate funding—have been well documented. These workers can also apply for the PPP loans as of this week, but if loan forgiveness is a priority, an individual would no longer be eligible … This is everything we know based on information directly from the SBA and the 19th Interim Final Rule (IFR) filed on June 19th, 2020. For more information on PPP loans generally go here) A Paycheck Protection Program (PPP) loan is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, with $349 billion designated for PPP loans. Full forgiveness for the PPP loan for the self employed! ☐ The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483). Independent Contractors for Grubhub Doordash … Another Covid-19 pandemic relief option for Grubhub, Uber eats, … That language that suggests independent contractor costs says the loan eligibility would include whether the borrower “paid independent contractors, as reported (on an IRS form 1099).” There’s another consideration in putting independent contractor payments into the base equation for borrowing money under PPP, according to Scopelitis’ Greg Feary: It might lead to problems with employee classification … Which … The PPP says self-employed individuals and independent contractors can start applying on April 10. You filed or will file a Form 1040 Schedule C for 2019 showing self-employment income. If for some reason your loan is not forgiven, you can repay it based on the latest PPP loan terms. The federal government initially authorized up to $349 billion of relief under the CARES Act through the new Paycheck Protection Program (PPP) loan program from the Small Business Administration (SBA). The entire amount of the PPP loan ( a maximum of 2.5 times monthly payroll costs) would be forgiven to certain eligible expenses incurred in an eight-week covered period. My business expenses are low (generally below $5k/yr), and the IRS and my CPA have never had a problem with me using my personal checking account for business expenses. The PPP Flexibility Act has extended the term of PPP loans to five years (from two) at a one percent interest rate. You are an individual with self-employment income (independent contractor or sole proprietor) ... 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