When I file tax for last year, I claim phone bill and my current personal car (car loan under my name) as an expense for my business. • Yes. Retain receipts and contracts for all loan funds spent for 3 years. We are agents/ independent contractors under hire to help business owners acquire the SBA EIDL loan for their business. EIDL loans are issued directly from the U.S. Treasury. The CANs.. A $349 billion loan program opened Friday for small businesses to help cushion the economic blow from the coronavirus pandemic. This means that independent contractors, freelancers, and gig workers are eligible to receive a $1,000 grant that does not have to be repaid." "WE ARE HERE TO HELP BUSINESS OWNERS APPLY FOR THE SBA EIDL LOAN." Fill out this application & we will respond within 24hrs! Taking out an independent contractor loan can help you meet financial obligations (like paying the mortgage) on time and also prevent critical services like health care from being suspended. EIDL loans can be used for expenses outside the Payroll Protection Program (PPP), which should be used primarily for employee wages. This means that independent contractors, freelancers, and gig workers are eligible to receive a $1,000 grant that does not have to be repaid. EIDL APPLICATION. The requirements are straightforward. Updated: 1:53PM CST 4-21-2020. This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. A lesser-publicized loan from SBA, the Economic Injury Disaster Loan (EIDL), works for independent contractors. Loan Forgiveness for Self-Employed Individuals and Independent Contractors. EIDL Loans and Grants. It’s a loan with a unique feature: Part of the program offers up to $10,000 “within three days” that under most conditions doesn’t have to be paid back. As of June 15, 2020, the SBA is once again accepting EIDL Advance and loan applications from all eligible borrowers. Independent contractors and self-employed individuals could begin applying for Small Business Administration loans under the Payroll Protection Program as of Friday, April 10.. 4. Who is eligible for COVID -19 EIDL? The loan may be forgiven if all employee retention criteria are met and funds were used for eligible expenses. Unlike EIDL loans, you apply for PPP loans at a local banking institution instead of directly from the SBA. CUSTOM JAVASCRIPT / HTML. Sole proprietorships, independent contractors, cooperatives, ESOP’s, and tribal small business with 500 employees or fewer may all be eligible. The deadline for submitting an application is June 30, 2020. There are some smaller banks and credit unions offering PPP loans. The SBA is now waiving several qualifying conditions normally required: (1) the personal guarantee requirement for loans … An EIDL can provide up to $2million of financial assistance to an applicant, with properly demonstrated need and collateral. SEE … Congress appears to be close to enacting a new round of Paycheck Protection Program (PPP) loans along with other assistance to help small business owners and independent contractors. How do the PPP and EIDL overlap? Employers who previously obtained an EIDL loan may refinance their EIDL loan into a Paycheck Protection Program loan, which is eligible for forgiveness. All the funds received from EIDL loans can be used for other costs of operation, including supplies, rent, and utilities. Where do I apply? SBA Issues Guidance on Independent Contractor Eligibility for PPP Loans April 14, 2020 By: Lou Pizzileo; Robert L. Tobey; ... plus the amount of any Economic Injury Disaster Loan (EIDL) made between January 31 – April 3, 2020, less the amount of EIDL grant. Independent contractors--who file their taxes using 1099 forms--have the ability to apply for their own PPP loans beginning April 10. It was originally designed for disasters; the pandemic is considered a … These expand eligibility for Economic Injury Disaster Loans (EIDL) for any individual operating as a sole proprietor or independent contractor during the covered period (January 31, 2020 to December 31, 2020). Can I apply for COVID-19 EIDL with a business operating for less than a year? 6 6. • The SBA waived any personal guarantee on advances and loans below $200,000. Independent contractors are unlikely to maintain these types of credit lines, and many small businesses don’t maintain loans. Well, in this article, we’re going to break down exactly what can you use the EIDL loan money for and what you cannot use it for. Although you technically have to apply for the loan … EIDL Detailed: Self-Employed / Independent Contractor. On June 15, 2020, the SBA announced that it was again opening up its Economic Injury Disaster Loan (EIDL) grant and loan program. According to Forbes, "On June 15, 2020, the SBA announced that it was again opening up its Economic Injury Disaster Loan (EIDL) grant and loan program. Any EIDL grant award provided under the CARES Act is subtracted from a borrower’s loan forgiveness. Whether or not the loan is approved, all businesses are eligible for up to $10,000 in an advance payment. EIDL for Independent … The terms … Press J to jump to the feed. EIDL loans are not otherwise forgivable, though an EIDL loan may be refinanced into a Paycheck Protection Program loan, which is forgivable, in whole or in part, if certain requirements are met. Covid-19 related EIDL loans include an up-to-$10,000 forgivable advance. As other have said, it seems that you can borrow up to 50% of your 2019 gross income. - An independent contractor during January 31, 2020 to December 31, 2020. I am a freeland contractor, so my business is under my name. The full text of the bill is not yet available, but according to the summary shared by The Washington Post , the House bill will include $325 billion in aid to small businesses. loan proceeds must be used only for eligible payroll costs and certain eligible nonpayroll costs as set forth in program guidance . User account menu. Close. You are eligible to apply for the PPP and EIDL loans as a self-employed person and/or an independent contractor. PPP applications will be available starting April 3, 2020 for small businesses and sole proprietors, and starting April 10, 2020 for independent contractors and the self-employed. The SBA Emergency Injury Disaster Loan (EIDL) offers long-term, low interest loans for small businesses and non-profits affected by COVID-19. Economic Injury Disaster Loan (EIDL): Low-interest (3.75% / 2.75% nfp) long-term 5 to 30 years. EIDL for Independent Contractors/Sole Proprietors. These loans are open to small businesses, most nonprofits, sole proprietors, independent contractors, and cooperatives, ESOPS, and tribal small businesses with fewer than 500 employees. Okay, so let’s first break down what you CAN use the EIDL Loan money for: What You Can Use For: Business Operating Expenses a. (EIDL Advance grants are no longer available). Rent & mortgage payments (Not early payments) b. Business owners will not have to repay the loan advance of up to $10,000 even if their EIDL loan application is not approved. So I got approved eidl loan. As part of the $2 Trillion CARES Act sole proprietors, Independent Contractors (ICs) and self-employed became eligible for SBA loans and grants not previously available to them. Here are the details for each. A business must have 500 employees or fewer to be eligible for an EIDL loan. Press question mark to learn the rest of the keyboard shortcuts. 1 . So the EIDL loan has some pretty favorable terms. You are eligible to apply for the PPP, if you meet all these conditions: You were in operation on February 15, 2020 Who can apply for the EIDL loan? Independent contractors and self-employed individuals that have been adversely impacted by the COVID-19 pandemic have been eligible to apply for these loans since April 10, 2020. Any small business including sole proprietorships, independent contractors, self-employed individuals and private non-profit organizations (501(c)(19)) having 500 or fewer employees AND the practice has been in business since January 31, 2020. 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. You can apply for and use the PPP and EIDL loans at the same time—you just can’t use them for the same purpose. EIDL loans have been expanded to assist any individual who operates under a sole proprietorship, with or without employees or as an independent contractor, as well as any business, co-op, ESOP, or tribal small business (that in each case has fewer than 500 employees). Archived. Do I need to provide a personal guarantee on EIDL loans? One of those programs is the Economic Injury Disaster Loan program (EIDL), usually reserved for disasters like hurricanes and earthquakes.. Businesses can apply directly through the SBA website. Log In Sign Up. WE CAN HELP YOU ACQUIRE FUNDING ANYWHERE FROM $50,000 TO $150,000 IF YOU QUALIFY. loans for working capital. If things get really tough, you could even use your independent contractor loan to pay for your basic living costs and your family’s necessities. 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