As an independent contractor, you may have found that getting a loan to support your business can be challenging. However, with the introduction of the Paycheck Protection Program (PPP), getting a loan has become easier for self-employed individuals.
The PPP is a forgivable loan program offered by the Small Business Administration (SBA) as part of the CARES Act. It was created to help businesses and self-employed individuals during the COVID-19 pandemic.
One of the benefits of the PPP is that it is available to independent contractors and self-employed individuals. These individuals can apply for a loan based on their average monthly income from self-employment. The loan amount can be up to 2.5 times their monthly income, up to a maximum of $20,833.
However, finding a lender that offers PPP loans to independent contractors can be challenging. Many banks and other lenders have prioritized their existing customers and have not opened the program to new customers. Therefore, it is essential to research different lenders to find one that caters to independent contractors.
Some lenders that offer PPP loans to independent contractors include:
1. Kabbage: Kabbage is an online lender that offers PPP loans to small business owners, including independent contractors. They have a simple application process, and you can receive your loan funds within a few days.
2. Paypal: Paypal is known for its online payment services but also offers PPP loans to independent contractors. They have a streamlined application process that can be completed online.
3. Bluevine: Bluevine is an online lender that offers PPP loans to small businesses and self-employed individuals. They have a simple application process and can provide funds within a few days.
4. Square: Square is a payment processor that also offers PPP loans to independent contractors. They have a straightforward application process, and you can receive your funds in a few days.
It is essential to note that the PPP loan forgiveness rules can be complicated, and it is crucial to follow the guidelines provided by the SBA to ensure that your loan is forgiven. Therefore, it is vital to work with a lender that can guide you through the process and provide support.
In conclusion, as an independent contractor, getting a loan through the PPP program can be beneficial for your business. However, it is crucial to research different lenders and find one that caters to your needs. With the right lender, you can secure a loan and receive the necessary financial support to keep your business running during these challenging times.