Question: How Do Independent Contractors Get PPP Forgiveness?

How do I apply for PPP loan forgiveness?

To apply for forgiveness of your Paycheck Protection Program (PPP) loan, you (the Borrower) must complete this application as directed in these instructions, and submit it to your Lender (or the Lender that is servicing your loan).

Borrowers may also complete this application electronically through their Lender..

Can Self Employed file for PPP loan?

To apply for PPP loan forgiveness, self-employed individuals can use the simplified Form 3508EZ. As long as you don’t have employees on payroll, this form applies to you. … When you apply, you’ll need to submit a Schedule C from your 2019 tax return showing the income and expenses from your sole proprietorship.

What documents do I need for PPP?

List of required PPP application documentsCompleted PPP Application Form. … Average monthly payroll costs (only applies to businesses with employees) … 2019 Proof of Payroll Costs (or Self Income) … Proof of Ownership. … Unexpired, Government-issued Driver’s License or Passport for All Owners Over 20%More items…•

How do I apply for PPP forgiveness?

To apply for PPP loan forgiveness, use the SBA’s Loan Forgiveness Application form, Form 3508. You might be able to use Form 3508EZ or Form 3508S if you meet the eligibility guidelines. Then, submit it to your lender.

Can self employed get PPP and unemployment?

While self-employed workers and anyone who gets paid using IRS form 1099 are eligible for both PPP loans and unemployment benefits, you can’t receive both. If you apply for unemployment and the PPP program and receive a PPP loan, you must then withdraw from unemployment.

When can independent contractors apply for PPP?

Independent contractors and self-employed individuals could begin applying for Small Business Administration loans under the Payroll Protection Program as of Friday, April 10.

Can you use PPP to pay yourself?

You can pay yourself back under certain conditions. Sole proprietors, pass-through corporations, and the self-employed may also use the PPP loan/grants to pay themselves their back, current, and future wages during the 8 week period.

What is the deadline for PPP loan forgiveness?

The SBA has not set a deadline to apply for forgiveness, but you have 10 months after the end of your covered period before you’ll be required to start making monthly payments.

Can independent contractors get PPP?

You are eligible to apply for a PPP loan as an independent contractor or self-employed individual who has been or will be harmed by the pandemic if all of the following are true: … You filed or will file a Form 1040 Schedule C for 2019 showing self-employment income.

What expenses qualify for PPP forgiveness?

Business expenses on electricity, gas, water, transportation, telephone, or internet access are eligible uses of PPP funds and qualifies for forgiveness.

How do you calculate FTE for PPP loan forgiveness?

To calculate the average FTE for each employee, Borrowers need to accumulate the total hours paid during the Covered Period (and chosen Reference Period) and divide the average number of hours paid per week during the relevant period by 40, and round to the nearest tenth.