In this 3-minute read:
- If you have 1099/1040 schedule C income, you likely qualify for PPP funding
- NEW RULES as of March 3, 2021 can mean BIG MONEY for Schedule C borrowers!
- Gig workers, contractors, Uber/Doordash/Postmates drivers, Vrbo/Airbnb owners, freelancers, Upworkers, and more!
- It’s free to apply, and your loan can be 100% forgiven!
Womply has helped over 250,000 people with their PPP loans, and one of the things we’re amazed about is how many people tell us they didn’t know they were eligible for this vital federal relief money.
News flash: The PPP isn’t just for “small businesses” that many think of as local brick-and-mortar stores. Millions and millions of independent contractors, sole proprietors, and self-employed individuals can qualify for forgivable PPP loans.
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Millions of American workers are eligible for up to $50,000 in FREE MONEY!
There’s absolutely no reason not to apply for a PPP loan if you have over $4800 in annual income on a 1099/1040 Schedule C, and you were in business before February 15, 2020. Even if you haven’t filed your taxes for 2020, you can still complete and attest to your 1040 Schedule C and qualify for a PPP loan. The application process takes around half an hour, and if you spend your funds according to the rules (which for contractors, gig workers, sole proprietors, and qualified self-employed individuals means spending up to 100% of your PPP funds paying YOURSELF), your loan will be completely forgiven.
This means you don’t have to pay back Uncle Sam a single penny of your first or second draw PPP loans! It really doesn’t get any better than this. But you only have until May 31, 2021 to apply, so get going on it! Womply can help walk you through the process, and it doesn’t cost you anything!
IMPORTANT PPP UPDATE: As of March 3, 2021, applicants who report their income with IRS Form 1040 Schedule C (i.e., most independent contractors, sole proprietors, and 1099 workers) will be able to use their GROSS (instead of net) profits to determine their max loan amount. This can make a big impact on the amount you can borrow, depending on how much you make and how you have reported your profits. Read more about the latest 1040 Schedule C/PPP loan rules changes, and see the new rules, and the new PPP application form for Schedule C applicants.
You may also like: Do I still qualify for a PPP loan if I started my business in 2020?
Why do I need to have earned at least $4800 to qualify for a PPP loan?
There’s currently a minimum SBA PPP loan amount of $1000. When calculating your maximum PPP loan amount, the SBA takes your evidence of your average monthly payroll (or earnings if you’re an independent contractor, sole proprietor, or eligible self-employed individual and pay yourself), and multiplies that number by 2.5 to get your maximum loan amount. So: $4800 (annual gross or net profit) ÷12 (months) X 2.5 = $1000.
What kinds of workers and contractors can qualify for PPP loans in 2021 and many not know it?
The kinds of workers that may be able to get forgivable PPP loans in 2021 include (but are not limited to): Amazon drivers, Airbnb/VRBOowners, Upwork/Fiverr freelancers, Grubhub/DoorDash/Uber Eats/Postmates/Instacart delivery drivers, YouTubers/TikTokers, content creators, Uber/Lyft drivers, Etsy store owners, contractors, housekeepers, truckers, farmers, computer/IT freelancers, gardeners, resellers, real estate agents… and the list goes on!
What things do I need in order to apply for a forgivable PPP stimulus loan?
It’s easier than you might think to qualify for a PPP loan.
- SSN or EIN
- 2019 or 2020 tax documents
- Driver’s license/photo ID
- Voided check
(Note: this is not an exhaustive list. Your lender may have additional requirements)
You DON’T need:
- Credit check
- Business bank account
- LLC or official legal entity
- How long does it take SBA to approve PPP loans?
- Learn about Uber driver PPP loan forgiveness
- Can Uber drivers get PPP loan
- Can I apply for PPP twice?
- Can Schedule E be used for PPP?
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