Paycheck Protection Program (PPP) for Independent Contractors and Self-Employed Individuals
April 8, 2020
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive Paycheck Protection Program (PPP) loans to cover certain expenses through existing SBA lenders.
The PPP allows you to request 2.5 times your monthly payroll costs or, in the case of a sole proprietor, net earnings from self-employment to finance payroll, rent, utilities, mortgage payments and other debt obligations. The loan can have no more than a 2 year term at 1% interest. All payments are deferred for 6 months, though interest will accrue over this period. The loan may be fully or partially forgiven if used for certain qualifying expenses. For additional information from the U.S. Treasury on PPP details, please click here.
Future guidance is pending with regard to report self-employment earnings for the PPP. However, we encourage you to consider applying for the program now as the details are still being reviewed. Pending further guidance, it is possible that a sole proprietor with no other employees may still qualify for the program and potential loan forgiveness.
A link to the most recent PPP application is available here.
For additional information on emergency financing relief efforts beyond payroll, including the SBA Economic Injury Disaster Loan (EIDL) and the $10,000 EIDL Emergency Advance Grants, please click here.