SBA PPP Loan Number: This is the SBA-assigned number provided to you at the time of loan approval. Similar to independent contractors, you are a sole proprietor and can use your PPP loan to cover wages, income, and net earnings for you as an individual, again capped at that $100,000 per employee in annual earnings. Start the application. If the current guidance from the SBA is taken literally, then it will be IMPOSSIBLE for ANY sole proprietor (with no employees) who has maxed out the 100,000 net earnings capped–and, based on that, received 2.5x MONTHLY income loan amount of $20,833–to qualify for loan forgiveness!! The SBA authorized lenders to begin taking applications for PPP Loans for most eligible businesses on April 3, 2020 but delayed authorization to accept applications from independent contractors until April 10, 2020. You can decide just to accept the grant you receive, and you do not have to accept an Economic Injury Disaster Loan. To qualify for a PPP Loan as a sole-proprietor, your business must have been in operation since February 15th, 2020. PPP Loan Amount: This should be the total loan amount you received from the Lender. You must add your Social Security number if you are applying as an individual independent contractor, freelancer, or gig worker. This program is for any small business with fewer than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. All of the following count towards your approved payroll expenses: Independent contractors do not count as employees under the Paycheck Protection Program. How to remarket on Facebook Step-by-step walkthrough for starting your remarketing campaign […], In this 8-minute read: What is remarketing? Similar to traditional employers, independent contractors can receive loans and use them toward their own payroll costs (meaning to pay themselves). (a) In determining a concern's number of employees, SBA counts all individuals employed on a full-time, part-time, or other basis. Starting Friday, self-employed and independent contractors are eligible to take advantage of Small Business Administration (SBA) loans, adding to the number … You may use Form 3508EZ if: If you don’t fit into any of the above conditions, you will need to complete and submit the full PPP loan forgiveness application. This also means that if you use your PPP loan funds to pay yourself and for other approved expenses and apply for loan forgiveness with the appropriate documentation, For full details on how you should spend your PPP loan, go, Salary, wages, commissions, or tips (this is capped at $100,000 based on annual pay for each employee), Employee benefits, including paid time off for vacation, family, medical, or sick leave, Payments for healthcare benefits for employees, State and local taxes on employee compensation. This means that independent contractors, freelancers, and gig workers are eligible to receive a $1,000 grant that does not have to be repaid. By submitting this form you agree to Womply’s Terms of Service and Privacy Policy. If you are the sole owners and staff of your business, you can still receive PPP loans and use them towards your payroll costs. For example, the Northern California SBDC has been extremely helpful, and you can actually talk to a person live (see www.asksbdc.com or call 833-ASK-SBDC). The SBA announced it's again opening up its EIDL grant and loan program to help those affected by ... [+] the coronavirus pandemic. The reason for this is that independent contractors are self-employed and, thus, can apply for their own PPP loans (as of April 10, 2020) to cover the pay they would have received and other expenses. But if the business owner already has an SBA emergency loan, it can be refinanced into the paycheck loan. On the sample check below, the account number is 2020202086. For more information on PPP loans generally go here. Make sure to check the box that says you want to apply for the $10,000 grant (although it will only be $1,000 for independent contractors, freelancers, and gig workers). Any business concern, nonprofit organization, veteran’s organization, or Tribal business concern that employs no more than 500 employees (or the size standard in number of employees established by the Administration for the industry in which such business operates) Sole proprietors; Independent contractors; Self-employed individuals You can ignore the question “If anyone assisted you in completing this application …” unless you have in fact gotten help. Therefore, they don’t qualify for small business loans from the SBA. Richard is the author of several books on start-ups and entrepreneurship as well as the co-author of Poker for Dummies and a Wall Street Journal-bestselling book on small business. The SBA has been directly depositing the grant money into bank accounts without notifying people that the funds are on the way or have been deposited. , an independent contractor as an individual owner total loan amount: this a. 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