Are you an independent contractor looking for financial assistance during the COVID-19 pandemic? The Small Business Administration (SBA) may have a solution for you through their Paycheck Protection Program (PPP).
The PPP was created to provide financial relief to small businesses and independent contractors impacted by the pandemic. Through the PPP, eligible individuals may receive a loan to cover 2.5 months of payroll and certain other expenses. The best part? If you use the loan funds for qualifying expenses, the loan may be forgiven.
So, what makes an independent contractor eligible for the PPP? According to the SBA, you must have been in operation on February 15, 2020 and have filed or will file a Form 1040 Schedule C for 2019. You must also meet certain size requirements, which can vary based on your industry. The loan amount you are eligible for will be based on your 2019 net income.
To apply for the PPP as an independent contractor, you’ll need to find a lender participating in the program. You can use the SBA’s Lender Match tool to help connect you with a lender. Once you’ve found a lender, you’ll need to gather documentation such as tax forms, bank statements, and payroll records (if you have employees). The lender will then determine your eligibility and loan amount.
It’s important to note that the PPP has limited funding and the application period ends on August 8, 2020. If you think you may be eligible for the program, don’t wait to apply.
Overall, the PPP can provide much-needed financial assistance for independent contractors struggling during these uncertain times. If you have questions about the program or need assistance with the application process, visit the SBA’s website at sba.gov or consult with a financial professional.