How to Complete Ppp as Independent Contractor

As an independent contractor, completing a PPP (Paycheck Protection Program) loan application can be a daunting task. However, it is crucial to ensure that you are able to get financial assistance during these unprecedented times. In this article, we will guide you through the process of completing a PPP loan application as an independent contractor.

1. Gather all necessary documents

Before you begin your PPP loan application, ensure that you have all the necessary documents. These include:

– Bank statements for the last 12 months to identify your average monthly income

– 2019 tax returns or IRS Form 1099-MISC

– A copy of your driver’s license or other government-issued identification

– Your Social Security number

2. Determine your loan amount

To determine your loan amount, multiply your average monthly income by 2.5. This amount represents the maximum loan amount you can apply for. If you have employees, you can also include their salaries and benefits in your loan amount.

3. Find a lender

PPP loans are offered through SBA-approved lenders. You can find a lender by using the SBA’s lender match tool or by contacting your bank to see if they are participating in the program.

4. Fill out the application

To fill out the application, you will need to provide information about your business, including:

– Legal name of your business

– Business address

– Business phone number

– Date your business was established

– Ownership information

You will also need to provide information about your loan, including:

– Loan amount

– How the loan will be used

– The number of employees you have

5. Provide supporting documentation

You will need to provide supporting documentation, including:

– Payroll tax filings

– Payroll reports

– Bank statements

– IRS Form 1099-MISC

– 2019 tax returns

6. Submit the application

Once you have completed the application and provided all necessary documentation, submit your application to your lender. Your lender will review your application and let you know if any additional information is needed.

In conclusion, completing a PPP loan application as an independent contractor may seem like a daunting task, but with the right guidance and preparation, it can be accomplished with ease. Make sure to gather all necessary documents, determine your loan amount, find a lender, fill out the application, provide supporting documentation and submit your application to your lender. By following these steps, you can ensure that you receive the financial assistance you need during these difficult times.