If you’re self employed or a sole proprietor and affected by COVID-19, you’re able to apply for the PPP Program and get your loan 100% forgiven.
The PPP loan covers up to 8 weeks of pay and expenses such as utilities and business rent (including home office). The amount you will receive will be equivalent to 2.5 months of the income reported on your schedule C for 2019. For example, if your net income was $100,000, you would receive approximately $20,833 from the PPP loan.
You are eligible if:
- you were in operation on February 15, 2020;
- you are an individual with self-employment income (such as an independent contractor or a sole proprietor);
- your principal place of residence is in the United States; and
- you have filed or will file a Form 1040 Schedule C for 2019.
I highly recommend using Kabbage which makes the process of receiving funds quick and easy.
Please note that you can not receive unemployment benefits and forgivable PPP funds to cover the same time period. Be sure to check with your lender on the exact requirements to get your loan forgiven.
Below are 2 guides I recommend reading.
Ultimate Guide to Paycheck Protection Program (PPP) Loans
Self-Employed Contractors Can Apply for Paycheck Protection Program Loans