I have not seen any guidelines that explicitly allow an independent contractor to apply in the store based on months on a pro rata basis. (There`s a seasonal business calculation, but since your business isn`t seasonal, it doesn`t seem to apply.) Here`s how you can use your PPP loan and not: If you`re an independent contractor or self-employed, you may be eligible for Paycheck Protection Program (PPP) loans/grants, SBA Economic Disaster Loans (EIDL), and/or unemployment benefit for loss of income related to the coronavirus pandemic. Update March 30, 2021: The President signed the PPP Extension Act. It gives entrepreneurs until May 31, 2021 to apply for PPP loans. As part of a larger aid package, Congress approved $284.5 billion in new funding for the paycheck protection program. The types of businesses and industries eligible for PPP loans have been expanded under the new bill. In addition, businesses that can demonstrate a reduction in gross revenues of at least 25% compared to the previous year and meet other requirements may be eligible for a second PPP loan. Tags: Managing Small Business Loans Small Business Administration (SBA) COVID-19 Loans Resources Here we focus on those who are self-employed and file a Form 1040, Appendix C. As a reminder, the SBA indicates that you may be eligible for a PPP loan if: 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 started working as an entrepreneur in June 2019 and showed a profit in Appendix C. My service in 2019 was ”as requested” so my 1099 only reflected 4 months of invoicing (June – September), I had a full year of contractor work in 2020. So, if I apply for a PPP based on my Schedule C 2019, can I get a monthly payroll by dividing schedule C`s profit by 4 (actual monthly income) or by 7 (June to December), or does it have to be 12? I didn`t have a full year of operation in 2019, so dividing it by 12 seems to be wrong. 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. Self-employed workers and independent contractors apply for a PPP loan like other small businesses: by finding an SBA-accredited lender that accepts PPP applications. First, you must complete the PPP application, which is available on the Department of Finance website (PDF). More information on eligibility for a second PPP loan can be found here. However, if you want to apply, I suggest that you do so as soon as possible. There are very few funds available that could expire before the official end of the program on May 31, 2021.

I have babysat children at home and have been paid in cash, can I apply for the loan and would I be eligible for the loan? Maybe. PPP borrowers must certify that ”the current economic uncertainty makes this loan application necessary to support the applicant`s ongoing operations.” However, there was a ”safe haven” for loans under $2 million. If I pay money to an independent contractor through my company and I don`t have a w-2 employee in my business. Can I get PPP loans for my business? According to the Ministry of Labour, ”A person working as an independent contractor with a reportable income may also be eligible for PUA benefits if they are unemployed, partially employed, unable to work or unavailable because the COVID-19 public health emergency has severely limited their ability to continue their usual professional activities. and thus forced the individual to suspend such activities” is eligible. We recommend that you wait until the last week of March 2021 to apply for PPP loans in order to take advantage of the cheaper financing formula for small businesses. Rick – I don`t know. The best thing I can say is to contact the lender. However, you should try to reduce your taxes for 2019 as soon as possible, as your line 31 of Schedule C 2019 is the amount you would have to use to qualify, which may affect your eligibility for the credit remittance. Shel – Have you tried another lender? Some accept self-employed applications for lower amounts. Fill out the form to Nav.com assign to a lender. No guarantees, but it`s worth a try! When you complete the PPP loan application form SBA.com® 1099, we will immediately send it electronically to our PPP loan agent partner.

Our partner will consider this first request. If they find that you may qualify for a PPP loan, they will help you prepare your PPP loan application and then submit it to a lender in their network that offers PPP loans at that time. You are eligible to apply for a PPP loan as an independent contractor or self-employed worker who has been or will be harmed by the pandemic if all of the following are true: I`m sorry you`re having trouble applying for a Janet PPP. The SBA requires proof of salary. A 2020 Schedule C tax return may work, but you`ll need to report your income to the IRS on a Schedule C tax form (or at least get 1099 of those you worked for). If your income is all ”under the table” or not reported to the IRS for taxes, as it seems, I don`t think you can qualify for any of these assistance loans. If you need more direct help with your business and available programs, I recommend contacting your local SCORE or Small Business Development Center. They offer free mentors and plenty of help with these Covid relief loans. You can find your local office here. 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. I received the first PPP and when I opted for the 2. Round announced, I understood that I could be paid because I worked day and night using my schedule c.

It`s not true that my lender waited until the last day to tell me that they felt like I wasn`t eligible for more financing and that I had one of two options to accept the same 1st PPP amount or apply to another lender. knowing that it would be impossible because it was the last day to apply. What a choice was that, knowing that my company was already experiencing a 45% drop in sales and trying to keep everyone on the payroll, I accepted what was available and not what I was legally entitled to under the SBA. I needed the $25,000 he turned away, but I think as a female Hispanic business owner, my contribution didn`t matter to him. He disagreed and felt that I was not entitled to the additional funding. Incredible! I submitted my credit pardon immediately because I kept all my employees on staff, every penny was paid out of payroll and I still don`t have an answer. I am concerned that it is not in my company`s interest to obtain the PPP. I`ve managed to be in the business with my husband since 1968, and in 2006 I took it by myself, if the SBA hadn`t been there, I wouldn`t have done it, so I`m really grateful for the help I`ve received. If you do not have employees, use the following methodology to calculate the maximum amount of your loan: According to the preliminary final rule, ”partnerships under the [CARES] Act are eligible for PPP loans, and the administrator has determined this. that limiting a partnership and its partners (and an LLC reporting taxes as a partnership) to a PPP loan is necessary to ensure that as many eligible borrowers as possible receive PPP loans by the legal deadline of June 30, 2020. Step 1: Starting with your 2019 or 2020 IRS Form 1040, Schedule C, you can choose to use your net profit amount for line 31 or your gross income amount for line 7. (If you use 2020 to calculate labor costs and haven`t filed a 2020 tax return yet, fill it out and calculate the value.) If this amount is more than $100,000, reduce it to $100,000.

If your net profit and gross income are zero or lower, you are not eligible for a PPP loan. If you didn`t receive an initial PPP loan, it doesn`t matter. You apply for a PPP loan for the first draw, and this does not require the 25% reduction in income. Hi Gerri, thank you for helping everyone with all these questions! When all this happened, we were in the middle of a move, only to find out that the people who were renting the house we were buying decided not to leave, which set off a whole chain reaction until August. .