The Small Business Administration (SBA) has recently updated their guide on how to apply for a Paycheck Protection Program (PPP) loan if you are self-employed. This article will provide you with the information you need to know before applying for a PPP loan. Self-employed workers and independent contractors can apply for PPP loans in the same way as other small businesses. To do so, you must first determine your eligibility, calculate your loan amount, and decide on the use case for your PPP loan.
After that, you can submit an application to an SBA-accredited bank or non-bank lender. A list of non-bank lenders that accept Forbes PPP loan applications can be found online. When applying for a PPP loan, it is important to keep in mind that banks are subject to a number of regulations, such as Know Your Customer and the Bank Secrecy Act. These regulations strictly govern how a financial institution can collect and process your request.
Additionally, the Treasury has warned that PPPs can affect unemployment, so you must declare your PPP loan forgiven to the state unemployment agency if you use it to pay yourself. If you don't qualify for the PPP, you may want to look into pandemic unemployment for self-employed workers. To make the application process easier, it is important to have up-to-date accounting records and a good record of your company's income and expenses. This can be difficult for self-employed people or independent contractors who are seeking out a small loan for the first time.
The SBA application for the PPP is addressed to self-employed workers with only one C using their gross, not to the “autonomous” joint venture, in which the gross is divided between the spouses. Chase bank has informed small businesses that if they want these new loans, they will have to go to another lender. If you have already been approved for a PPP loan but only requested an amount to cover your employees' paychecks, you may want to look into other larger subsidies and loans that your company may be eligible for. It is also important to note that lenders can cancel a PPP loan application and file a new application on behalf of the borrower until the loan funds have been disbursed to the borrower, but the lender has not submitted Form 1502 (stating the loan) to the SBA.
In conclusion, if you are self-employed or an independent contractor looking to apply for a PPP loan, it is important to understand all of the regulations and requirements before submitting an application. Additionally, if you don't qualify for the PPP, there may be other funding options available to your company. Do some research and talk to an accountant to find out what options may be available.