Paycheck Protection Program (PPP) Loan Facts.
What is the Paycheck Protection Program (PPP)?
The Paycheck Protection Program provides forgivable emergency loans. As a result, if you spend your loan on payroll, rent, mortgage interest, or utilities then the government will forgive your loan so you don’t have to pay it back. If you are an independent contractor, self-employed, or received 1099 funds, “payroll” means the funds you received for your contract work. Which means 100% of your PPP loan funds can go to paying yourself.
Are all independent contractors or self-employed persons eligible?
Small business owners, sole proprietors, gig workers, self-employed individuals, and pretty much anyone who has 1099 income can qualify for PPP loans. As long as you were in operation on or before February 15, 2020 and reported taxable earnings/income for 2019 or 2020, you can likely apply for PPP assistance.
If you identify as one or more of these:
- Freelancer
- Gig worker
- Independent contractor
- Consultant
- Sole proprietor or small business owner (with no employees)
If you have one or more sources of self-employed income:
- 1099-NEC
- 1099-K
- Sale of goods or services
- Business income
You are likely eligible for a PPP loan.

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