We all are now dealing with the COVID-19 pandemic that has impacted our lives and economic activity throughout the world. Even freelancers, self-employed professionals, and independent contractors are also affected. In such circumstances, the PPP loan amount is a great help. According to a report, the pandemic showed a negative impact on around 80% of independent contractors. The entire situation is confusion creating around the Paycheck Protection Program (PPP) for independent professionals.
One can qualify for a PPP loan when –
- Candidate files Schedule C along with 1040 returns each year.
- Paying workers with 1099 despite W2s.
- If workers are a pain in 1099s, you are still qualified as an independent contractor.
Applying for a PPP loan as an independent contractor
PPP loans are usually given by partner lenders who are actually working with SBA. They can also use Lender Match Tool for identifying a lender near you. For this, it is necessary to submit the documents together with the additional documents needed by the lender. Within ten business days, loans will be issued.
Applying for a PPP loan as a sole proprietor
Self-employed people take loans once in their lifetime to increase their business. Someone with a loan amount under $150,000 can easily apply for PPP loan forgiveness along with Form 3508S. If you are filing this form, then there is no requirement for supply documents or calculations. One thing to be mention here is the total amount spends on loan forgiveness amount and payroll expenses. File the loan forgiveness application with the lender, not with SBA. The lender will further take care of the complete procedure. Within 60 days, you will get the latest updates after filing the forms.
In case the lender rejects the application, he will inform you and allow you to further notifying the SBA. Do apply for SBA review and further inform the lender regarding the same within 30 days.
So, if you are an independent contractor or self-employed professionals who want to apply for a PPP loan, then our team is ready to help you out while addressing your concerns.