I haven’t seen this mentioned here as of yet, so let me make a post where people might see it for more than few minutes.
The recently passed legislation that authorized stimulus payments and increased unemployment also made available over $300B in money for small businesses affected by recent events. This explicitly includes self-employed people, sole proprietorships and independent contractors. So, any small businesses or self-employed folks who are seeing their business slack off, even 1099 workers who did hair at a now-closed salon, or can’t get Uber rides from late-night partiers? This is for you.
The Paycheck Protection program works like so:
You can “borrow” an amount up to 2.5 months of payroll expenses….and you never have to pay back an amount used for two months of payroll and other expenses such as rent and utilities. It gets forgiven, and doesn’t count as taxable income.
Now, in order to get this, you can’t reduce payroll, but it’s not obvious how a self-employed person would do that anyway.
Applications are supposedly being accepted April 3rd for businesses, and April 10th for self-employed people.
Here’s the official announcement from the Small Business Administration: www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
That’s sort of terse, so here’s a better summary of how this works: home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf