He has been involved in over 200 M&A transactions and 500 start-ups. Your bank account number, which can be up to 17 characters. If you don’t have this number, talk to your lender. Independent contractors, sole proprietors and the self-employed should talk to their local bank first and make sure they are an SBA-approved lender, or a 7(a) lender. If you are an independent contractor, freelancer, or gig worker, here are some tips on filling out the application: The form should take about 15 minutes to fill out. Under the CARES Act passed on March 27, 2020, independent contractors, gig workers, and freelancers affected by the coronavirus crisis are eligible to receive a government grant of $1000. You may opt-out by. The SBA has been directly depositing the grant money into bank accounts without notifying people that the funds are on the way or have been deposited. Independent Contractors and COVID-19 But if the business owner already has an SBA emergency loan, it can be refinanced into the paycheck loan. For a sole proprietor or independent contractor, that means wages, commissions, income, or earnings from self-employment ($100,000 a year max for each employee). Are you unsure if the non-traditional employees you’ve hired count towards payroll for the Paycheck Protection Program (PPP) loans? © 2020 Forbes Media LLC. A loan for favorable terms from the SBA may also be available. There are many lenders who offer loans for independent contractors. Read and reply to customer reviews across Google, Facebook, and Yelp, in one place. First, let’s define what an “employee” means under the Paycheck Protection Program. See all articles by Richard Harroch. It will ask for the date the business was established. Restaurants in general were approved for the greatest number of SBA loans between 2006 and 2015. AllBusiness.com is one of the world’s largest online resources for small businesses, providing essential tools and resources to start, grow, and manage your business. He was also a corporate and M&A partner at the law firm of Orrick, with experience in startups, mergers and acquisitions, and venture capital. Starting Friday, self-employed and independent contractors are eligible to take advantage of Small Business Administration (SBA) loans, adding to the number … For example, the Northern California SBDC has been extremely helpful, and you can actually talk to a person live (see www.asksbdc.com or call 833-ASK-SBDC). The grants are available until December 16, 2020, but the SBA will quickly run out of money, so you should apply as soon as possible. Know all your customers and target the right ones, every time. You can still pay them with your loan, as they qualify as a legitimate expense, but that portion you spend will not qualify for loan forgiveness if it is used to pay independent contractors. When the form asks for your business name, just enter your individual name if you don’t have a business name. Independent contractors will now be eligible for SBA loans. You also need to be self-employed, an independent contractor, or a sole proprietor. If you haven’t applied for your PPP emergency stimulus loan yet, there’s still time, but you have to act fast. Where it asks for “Owner” put your name and “100” percent owner. The “routing number” for your bank, which must contain 9 digits. Small businesses and agricultural businesses also may apply for the grant, equal to $1,000 per employee of the business up to a maximum of $10,000. click here to start your free application. A 1099 independent contractor is a subcontractor–not an employee. MLM participants are considered independent contractors, not small businesses. His articles have appeared online in Forbes, Fortune, MSN, Yahoo, FoxBusiness, and AllBusiness.com. Please read the full details here. $2T Stimulus Overview Covid-19 Loans: What You Need to Know About 1099 Workers New guidance clarifies that independent contractors do not count … For full details on how you should spend your PPP loan, go here. There are even some lenders who offer independent contractor loans to immigrants and visa holders. 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