If you are self-employed with a 1099 but you also have external contractors with a 1099, how would you apply for a PPP if you had not last applied for it? Do you need clairvoyance, please? Self-employed workers and independent contractors apply for a PPP loan in the same way as other small businesses: by finding an SBA-accredited lender that accepts PPP applications. However, if you don`t have employees, you can still get PPP loan financing. With the change in loan calculations for Schedule C filers, self-employed and independent contractors can use gross income instead of net income to determine the total amount of their loan. Since your independent contractor did not apply for a PPP the first time, it is my understanding that they would apply for a PPP loan for the first draw and not a PPP loan for a second draw, as you have never received one before through this company. Keep in mind that the owner`s compensation for this first PPP loan cannot exceed $20,833 combined. You have the right to apply for a PPP loan as a self-employed or self-employed entrepreneur who has been or will be harmed by the pandemic if all of the following conditions apply: The SBA does not stipulate that you must file your 2020 tax return before applying. The good news is that if you want to qualify based on your gross income (line 7), simply fill out lines 1 to 7 of your Schedule C to get that number to calculate your loan amount. For many independent, self-employed, and gig entrepreneurs, this should be pretty easy. Instructions for Appendix C can be found here. (Check with your tax specialist if you have any questions.) As for the second question, we don`t have all the necessary tips for forgiveness, but in the article we shared what the SBA has so far documented in the How to Document Forgiveness section. I am an independent entrepreneur who started my business at the beginning of the year, but was operational before 14.02.20. How do I proceed when filling out the PPP loan? I have no employees, I own 2 separate companies.
Both are Sub S Bodies. I do not take a salary, but I report the income at the end of the tax year. I can`t qualify for the PPP for Business, so what can I do? In addition, taxes for 2019 for both will not be due until September. Thank you very much. 1) I am a subcontractor 1099, I received my first print. My question that no one can answer is: what can I spend the money on? I have read that you can pay for yourself, but I have not been able to get any details on what that means. Do I have to keep records of what I spend it on? Hi Dan, this happens to me again and again. I do business with Bank of America (BOA). I am one accessory. BOA says I`m fine and I`m going to submit it to the SBA for approval, but then I cancelled my loan and had to start all over again. Now I`m going through the same problem with a «commercial license.» There is no license to deploy. I provided EINs, tax returns and business statements.
Have you found a solution? I`ve been on the phone with BOA for about 3 p.m. so far and I don`t know what else to do. 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. I am the sole owner in the travel and hospitality industry. I submitted my schedule c on time but moved 3 times in 5 months. I applied for an EIDL loan and was offered $25,000 and decided to take only $14,000.00. Now, I can`t find any of the information I had for my 2019 taxes, and I was sent a letter informing me that I could ask for more, up to a maximum of $103,000.00. I`m not sure what to do.
I don`t have a warranty apart from my computer and car, but I could use more money for advertising. Another question is that my Huby has always helped me and I don`t know if I put him as Emplyee (all the others are sent in 1099), and we knew he would be eligible for SS from August. What must I do? Where can I find my original application? Does it matter? Thank you Cheryl I haven`t seen any guide that explicitly allows an independent contractor to apply based on the months on a pro rata basis in the store. (There`s a seasonal business calculation, but since your business isn`t seasonal, that doesn`t seem to be true.) Self-employed persons and independent contractors can take advantage of PPP loans in accordance with the SBA`s instructions. If you use the loans appropriately, your business has the potential to get a 100% credit forgiveness. I am a seasonal self-employed worker. I run a summer football camp business, and this particular company literally makes all its money for a week of the year. Have you seen any further advice from lenders on how they interpret PPP rules in relation to seasonal self-employed workers? Of course, I`d rather be considered seasonal than calculate the net of a week (albeit a substantial sum) over a 12-month period that is too average. Are you just curious about whether you`ve seen lenders lending to individuals on a seasonal basis? The provisional final rule does not clearly indicate what counts as a seasonal activity and refers only to income and labour costs as determining criteria. Thanks in advance! You cannot report the payments you make to 1099 contractors as payroll.
They are not employees – they are contractors and can apply themselves. So, if you don`t have employees, use the instructions in this article to apply for freelancers and not employees. As a first-time applicant, you do not have to prove the loss of gross income. You can apply based on 2019 or 2020 net income, as set out in Appendix C. Doug, I totally agree with you!! I have just expressed my concerns here as well. I asked questions after the questions and I get the minimum while all these big companies and people ask for extra money and get it!! All this is wrong and no one knows what they are doing!! Hello, I am a sole proprietor and I started collecting PUAs in March 2020 because my business has been affected by Covid 19. Does this mean that I am not eligible for the PPP loan because I did not work during this period? I only worked until the middle. February of this year. If I qualify, how do I calculate my loan amount? I want to use some of the money for inventory because the reason I`m closed is because I didn`t make enough money to replenish it because there was a lack of customers during the pandemic. It will be this money that will allow my business to restart. My husband also works for me. Can I pay for it with it? I just applied over the weekend to the second round and the 1st round said that I qualify as second, credit companies say that if they do not earn 8000 per month, an independent contractor does not qualify.
It`s garbage, big business has money left and right. For us, it is the little people who are the backbone of our community. I can`t speak for the lender or the SBA, so I can`t say for sure how the lender will handle it. I`m sorry, but I can only share what the guide says. This is undoubtedly confusing. The SBA guidelines do not contain much specific information on the application for PPPs for several companies. .