Independent Contractors are eligible for loans
SBA.com® is a private website with access to a large marketplace of business lenders. Simply fill out our loan request form and we will do our best to match you with a lender that may be able to help you secure the funding you need for your businses.
Important things to consider:
- You do not have to use SBA.com to obtain funding of any kind
- We present your request to our network of funding companies and try to match you with the best one based on your needs
- SBA.com only connects you with a funding company and we are not your lender
- Once matched, you will deal directly with the funding company and any future communication should be directed to them
- SBA.com can not guarantee your application will be accepted or a funding company will fund your loan.
SBA.com® is a private website with access to a large marketplace of PPP lenders through our partner Lendio. Fill out our loan request form and our partner Lendio will help you with your application and submit it to a PPP lender that is actively funding PPP loans.
Important things to consider:
- You do NOT have to use SBA.com® to obtain a PPP loan.
- We pass your loan request to our partner Lendio who will try to connect you with a PPP lender in their network that is actively funding PPP loans.
- SBA.com® only connects you to Lendio and is not your lender.
- Once you start an application with Lendio, you will have to reach out to Lendio or the lender you are connected with about any questions on your application.
- Neither SBA.com® nor Lendio can guarantee your application will be accepted or a lender will fund your loan.
Additional Information for Paycheck Protection Plan Borrowers
- The Paycheck Protection Program (PPP) ended on May 31, 2021. Existing borrowers may be eligible for PPP Loan Forgiveness.
- PPP allowed certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan
- Second Draw PPP Loans can be used to help fund payroll costs, including benefits
- 8 to 24 week covered period following loan disbursement
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
- The loan proceeds are spent on payroll costs and other eligible expenses
- At least 60 percent of the proceeds are spent on payroll costs
Who could apply?
Independent contractors receiving 1099-MISC forms and self-employed individuals were eligible to apply for these potentially 100% forgivable loans beginning on Jan 11, 2021 and ending on May 31, 2021.
Those who previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
Those who could demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
How to use your proceeds from PPP Loans:
- Replacement for your normal 1099-MISC or net self-employment income (capped at $100,000 on an annualized basis for each employee);
- Interest on mortgage obligations, incurred before February 15, 2020;
- Rent, under lease agreements in force before February 15, 2020; and
- Utilities, for which service began before February 15, 2020.
- Protection costs related to COVID-19
- Uninsured property damage costs caused by looting or vandalism during 2020
- Certain supplier costs and expenses for operations.
How large can my loan be?
The maximum loan size is up to 2.5 times your average monthly 1099-MISC or net self-employment income for the past 12 months. That amount is subject to a $2 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation.
PPP Loan Forgiveness
What you need to know
Loan Forgiveness is available for borrowers of First and/or Second Draw of the PPP Loans as long as the borrower meets these terms
- Employee and compensation levels were maintained
- The loan proceeds were spent on payroll costs and other eligible expenses; and
- At least 60% of the proceeds were spent on payroll costs
How to apply for loan forgiveness:
- Determine if your loan was issued by a lender participating in direct forgiveness through SBA.gov and complete the correct form. For a list of participating lenders, click here.
- If your lender is participating in direct forgiveness through SBA.gov you may submit your application starting August 4, 2021 using this portal. Here, you can find instructions on how to complete the Loan Forgiveness Application
- If your lender is not in the list of participating lenders, you must apply for Loan Forgiveness directly through your lender. Your lender may provide you with SBA form 3508, 3508EZ, 3508S or equivalent. Your lender should be able to provide you with additional guidance
- Compile your documents:
- You may not be required to provide additional documentation showing the calculations used to determine your loan forgiveness amount if you are using form 3508S. However, SBA may request additional information as part of the loan review and audit process
- Payroll Expenses
- Bank account statements or reports documenting compensation paid to employees
- Tax forms or third party reports if using payroll service for covered period
- Payment Receipts, cancelled checks and/or any employer contributions made to employee health insurance and retirement plans included in forgiveness amount
- DO NOT include qualified wages paid during April 1, 2020, through December 31, 2021, that are taken into account for purposes of claiming the Employee Retention Credit (ERC)
- Non-Payroll Expenses (Must be able to show expense obligation or service rendered during the covered period and existed prior to February 15, 2020):
- Business Mortgage Interest Payments
- Business rent or lease payments
- Business utility payments
- Covered operation expenses
- Covered property damage costs
- Covered supplier costs
- Covered worker protection costs
- Submit your application and related documents to SBA.gov or your PPP lender:
- Submit all documents using the SBA portal or directly to your lender. Your lender may follow up and request additional documentation
- Monitor your application for loan forgiveness:
- If your application is accepted and SBA conducts a review, SBA or your lender will notify you of such action as well as a decision. You have the right to appeal certain decisions made on your loan. Your lender is responsible for notifying you of the amount that will be forgiven and if a payment is due, they will notify you of the amount and date of your first payment.
- If you need additional assistance, you may call the forgiveness call center: 877-552-2692 Monday - Friday from 8am - 8pm (EST). This line is available for borrowers that used the SBA portal to process their loan forgiveness. All others should contact their PPP lender directly. For additional help, visit the direct forgiveness knowledgebase