Am I eligible?
Sole proprietors, gig workers, self-employed individuals, and pretty much anyone who has 1099 income are among the types of business concerns that 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.
How do I know if I’m self-employed?
Being self-employed or a “non-employer” encompasses a wide range of people. Here are some guidelines to help you determine if you’d qualify for a PPP loan as a non-employer:
If you identify as one or more of these:
- Gig worker
- Independent contractor
- Sole proprietor or small business owner (with no employees)
Note: receiving W-2 income does not disqualify you from receiving a PPP loan if you receive income from any of the above sources.
If any of the above applies to you, then you are likely eligible for a PPP loan.
Still not sure if you qualify? Check out the “Do I qualify for the PPP?” section of our FAQ. If you’re not 100% sure, we always recommend you go ahead and apply anyway! The application process will help you determine if you are eligible for a PPP loan.
Where can I apply?
Borrowers can apply for a First Draw PPP Loan until May 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All new First Draw PPP Loans will have the same terms regardless of lender or borrower.
What documents do I need to apply?
Here are the documents non-employers should expect to provide when applying through Fast Lane:
- U.S. mobile phone number
- Your Social Security Number (or ITIN)
- US-based bank account
- Access to your tax records from 2019 or 2020. You must upload at least one of the following:
- IRS Form 1040 Schedule C 2019 (filed)
- IRS Form 1040 Schedule F 2019 (filed)
- IRS Form 1040 Schedule C 2020 (filed)
- IRS Form 1040 Schedule F 2020 (filed)
- IRS Form 1040 Schedule C 2020 (draft)
- IRS Form 1040 Schedule F 2020 (draft)
- Government issued ID, such as:
- Drivers License
- State ID
- Passport Card
- Permanent Resident Card
- Work Permit
Other eligibility questions
If you’re not sure if you qualify, just apply for a PPP loan! The PPP application process should quickly help you discover what’s necessary to apply, and whether you’re eligible.
However, if you have more questions about qualifications for the PPP start with the “Do I qualify for the PPP” section of the FAQ.
What can I use the funds for?
The proceeds of a PPP loan are to be used for:
- Payroll costs (as defined in the CARES Act, Economic Aid Act and this interim final rule);
- costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums;
- mortgage interest payments (but not mortgage prepayments or principal payments);
- rent payments;
- utility payments;
- interest payments on any other debt obligations that were incurred before February 15, 2020;
- refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020;
- covered operations expenditures (payments for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses);
- covered property damage costs (costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation);
- covered supplier costs (expenditures made by a borrower to a supplier of goods for the supply of goods that—
- are essential to the operations of the borrower at the time at which the expenditure is made; and
- is made pursuant to a contract, order, or purchase order—
- in effect at any time before the covered period with respect to the applicable covered loan; or
- with respect to perishable goods, in effect before or at any time during the covered period with respect to the applicable covered loan); and
- covered worker protection expenditures
- operating or a capital expenditures to facilitate the adaptation of the business activities of an entity to comply with requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent requirements established or guidance issued by a State or local government, during the period beginning on March 1, 2020 and ending the date on which the national emergency with respect to the COVID– 19 expires related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19;
- such expenditures may include:
- the purchase, maintenance, or renovation of assets that create or expand
- a drive-through window facility;
- an indoor, outdoor, or combined air or air pressure ventilation or filtration system;
- a physical barrier such as a sneeze guard;
- an expansion of additional indoor, outdoor, or combined business space;
- an onsite or offsite health screening capability; or
- other assets relating to the compliance with the requirements or guidance as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and
- the purchase of:
- covered materials described in section 328.103(a) of title 44, Code of Federal Regulations, or any successor regulation;
- particulate filtering facepiece respirators approved by the National Institute for Occupational Safety and Health, including those approved only for emergency use authorization; or
- other kinds of personal protective equipment, as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and
- such expenditures do not include residential real property or intangible property.
- the purchase, maintenance, or renovation of assets that create or expand
At least 60 percent of the PPP loan proceeds shall be used for payroll costs. For purposes of determining the percentage of use of proceeds for payroll costs, the amount of any EIDL refinanced will be included. For purposes of loan forgiveness, however, the borrower will have to document the proceeds used for payroll costs in order to determine the amount of forgiveness.
While the Act provides that PPP loan proceeds may be used for the purposes listed above and for other allowable uses described in section 7(a) of the Small Business Act (15 U.S.C. 636(a)), the Administrator believes that finite appropriations and the structure of the Act warrant a requirement that borrowers use a substantial portion of the loan proceeds for payroll costs, consistent with Congress’ overarching goal of keeping workers paid and employed. This percentage is consistent with the limitation on the forgiveness amount set forth in the Flexibility Act. This limitation on use of the loan funds will help to ensure that the finite appropriations available for these loans are directed toward payroll protection, as each loan that is issued depletes the appropriation, regardless of whether portions of the loan are later forgiven.
For more details: Use of PPP Loan Funds FAQ
Do you charge a fee?
No. Applying through Womply (via PPP Fast Lane or Non-Fast Lane) is completely free for any eligible business. It’s illegal for any company to charge a borrower to access the PPP program.
Companies such as Womply (we are not a lender) receive compensation from our lender partners. Lenders get paid fees by the government for providing PPP loans. Neither Womply nor any PPP lender will charge you to access the PPP program.
What if I don't have a cell phone?
Currently the PPP Fast Lane can only be set up with a verified cell phone number. This is required so we can keep your information secured and provide log in codes for only you to receive when logging back into your application.
If you currently don’t have a cell phone to provide for the PPP Fast Lane application, you can continue applying without Fast Lane HERE
Step by step directions of PPP Fast Lane
Fast Lane was built to help guide you through the process. Go to this page https://www.womply.com/ppp and we’ll get you started.
Below is a step-by-step video walk-through of the Fast Lane application process.