Self-Employed: How To Apply For A Payroll Protection Program PPP Loan

Will a Personal or Business Credit Check Be Required for EIDL or PPP Loans?

Employer Questions About COVID-19

Have at it! We'd love to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and protect yourself. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers.
Reviews Disclosure: The responses below are not provided or commissioned by the credit card, financing and service companies that appear on this site. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered.

328 responses to “ Self-Employed: How To Apply For A Payroll Protection Program PPP Loan ”

Good Morning . I had a quick question regarding PPP . My dad is going on 72 years young and he is barely able to make payroll for his employees . He is paying out of his pocket if he can afford it . He has 9 poultry houses and is not making any money at all . Is there anything you can tell me that he apply for and get with the PPP ? Thank you for your time . Jason

Gerri Detweiler says:

I’m sorry but PPP is closed. I’d encourage your dad to connect with his local SBA resource partners (SBDC)/ SCORE etc. to get free assistance and to find out about local programs that may be available to him.

I got first and second rounds deposited to my personal checking account in February 2021, because I’m a sole proprietor. I was fully forgiven September 1, 2021 and in April 2022 my bank decided to send 26k which was my personal money of the [ fully forgiven 32k ppp ] back to harvest small business finance without my permission because the bank says i can’t get a business loan in my personal account. I’ve been fully forgiven and the funds were used for the correct intended purposes and also mind you now, it’s been over a year that I’ve received the funds into my personal account without any issues whatsoever. Where is my money? Where how man

Gerri Detweiler says:

I’m so sorry to hear this! I’d recommend you reach out to your Senators in Washington to see if someone can help since this was a federal government program.

Gerri Detweiler says:

HI THERE, WILL THE PPP LOAN BE REOPENED FOR FIRST TIME DRAWERS FUNDED BY ASSETS SEIZED FROM PPP SCAMS AND FRAUD?

Gerri Detweiler says:

I am not aware of any current efforts to reopen PPP. We’ll have to see if Congress decides to change that.

Gerri Detweiler says:

You said:You must provide the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C with your PPP loan application to substantiate the amount for which you applied. You must also include a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing non-employee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020 I have bank statements showing I was paid as an independent contractor but because Im an s-corp, they dont give me a 1099 form. I did FORMAL PAYROLL for 2020 with my ppp money but now the bank is saying I should have never received the loan(and therefore I cant get forgiveness) because I dont have a schedule c for 2019. I have k-1s. In your instructions above, you said we could use bank statements. Do you know if the sba agrees with that? Do you have any advice for me?

Gerri Detweiler says:

My understanding is that if you pay yourself with formal payroll you may apply for the loan and forgiveness based on that. (You’re right – S Corps often file a K-1.) The SBA has just announced a hotline for PPP questions. I’d encourage you to call them asap and see if you can get some help. Here’s the info: If you have questions or need help with PPP forgiveness, call the SBA’s PPP customer service team at (877) 552-2692, Monday – Friday, 8 a.m. – 8 p.m. EST.

Thank you for your reply. They said I have no problem qualifying for forgiveness but because I shouldnt have received the loan in the first place, I cant get forgiveness. What do you suggest?

Gerri Detweiler says:

Again, I’d suggest talking with the SBA and see if they can help. Other than hiring legal counsel to challenge the bank’s assessment I’m not sure what other options there are. Hopefully the SBA can help.

The ppp hotline info you gave is GREAT! They answer immediately. They only deal with forgiveness though . Do you know how I can talk to someone at the SBA? Calling the sba number will get you nowhere. I read the instructions for filling out the application for the loan and it looks clear that the bank was correct in giving me the loan. I cant pay $5000 for a lawyer for a $13000 loan. Thank you for all of your help. I just need to know if the sba will accept bank statements showing indep contractor income for 2019 or if it HAS to be a schedule c or 940/1.

Gerri Detweiler says:

I’m glad to hear that Ja Do! And I can understand not wanting to hire an attorney. Three thoughts: 1. Try your district SBA office. 2. Try your elected officials in Washington. They have staff who get involved with constituent problems with government programs. 3. Do you have a local consumer assistance reporter who might help? (FYI I tried to email you.)

I received the first PPP and upon applying for the 2nd round, it was my understanding I could be compensated since I work day and night by using my schedule c. not true my lender waited till the last day to inform me that he felt as though I was not entitled to more funding and that I had one of two options either accept the same amount from 1st PPP or go apply at another lender. knowing that would be impossible since it was the last day to apply. What choice was this knowing my company was already suffering a 45% decrease in revenue and trying to keep everyone on the payroll, I accepted what was available and not what I was legally entitled to according to the SBA.
I needed that $25,000 he denied me from having but I guess being a Hispanic Women Business owner my contribution did not count in his eyes. He disagreed and felt I was not entitled to the additional funding. Unbelievable ! I have submitted my loan forgiveness immediately since I kept all my employees on staff every penny went on payroll and I still have no answer. I am terrified that getting the PPP was not in my companies best interest. I have managed to be in business since 1968 with my husband and in 2006 taking it over by myself had the SBA not been there I would not have made it thru, So for this, I am truly grateful for the help I did receive.

Gerri Detweiler says:

I’m so sorry to hear how difficult this has been for you. Good for you for hanging in there. The SBA will be announcing a new forgiveness portal soon, so hopefully that will make it easier for you to qualify for forgiveness.

Has the date for the ppp loan passed? If not am I understanding that you have to have a small business loan that you are paying and that you can use the ppp loan to pay the loan off? What if you don’t have a small business loan, but was unable to do your job due to co-vid restrictions and need to just pay your self.

Gerri Detweiler says:

Unfortunately you can no longer apply for PPP. However, the EIDL and Targeted Grant are still open for applications.

I haven’t received a payment but it says that I was approved on may 28.I have the loan number. Is there any kind of way I could find out what happened or call

Gerri Detweiler says:

You’ll need to reach out to your lender. Unfortunately that’s the only way to get information about your PPP loan.

Hello
I haven’t received any payment but it says that I was approved on the 28 of June. Is there any kind of way to find out what happened to it

I have applied somewhere else and they say they are looking at my info. It’s been months yet to hear. Can I reapply

Gerri Detweiler says:

Hello, the form I am filling out for the PPP as a self-employed sole proprietor with no employees asks for the line 7 or gross divided by 12×2 1/2. It then asks for EIDL amount. I have been looking for Instructions for this. The only reference I have seen is your video which says that it is no longer part of the equation. Do I just write a zero into that EIDL space? Thank you

Gerri Detweiler says:

I sent in a question a little while ago but somehow it disappeared on here I am self-employed with no employees. I read on here a little while back that a person could qualify showing a 25% reduction in one specific month is that true and I did not receive a first p p p loan. Also I saw on here that a person had gone to a few different lenders and no one had heard of the 25% reduction thing can you pair me with someone who does know about that. Cuz that’s how I would go about it. I have bank records and everything that shows my 2020 business income.

Gerri Detweiler says:

Tom – I replied that I am not aware of a 1 month window for the 25% reduction. My understanding is it is one quarter in 2020 compared to 2019 or annual (2020 compared to 2019). I haven’t seen anything that talks about a 1 month reduction. If you did not get a first ppp loan then it doesn’t matter. You will apply for a first draw PPP loan and that does not require the 25% reduction in revenue. However, if you are going to apply I suggest you do so asap. There are very limited funds available and they could run out before the program officially ends May 31, 2021.

I am self employed as a babysitter I also translate and I also help people do thier taxes and sometimes other legal paperwork. My bank account was closed around February 2021 and I open a new account wid suntrust. Also my bank statement from 2/20 has my maiden name on it n my id has my married name what do I do to fix it

Gerri Detweiler says:

Tammy – I don’t know how to advise you. I don’t know what you mean by fix it. Fix what? Your bank statement? I doubt you can change that but you may be able to supply the lender with information to confirm that’s your previous name. My best advice is to talk to your lender.

Hi Gerri, 1) I’m a 1099 subcontractor, I have received my first draw. My question that no one can seem to answer is, what can I spend the money on? I’ve read you can pay yourself but I’ve not been able to get any clarification on what that means. Do I need to keep records of what I spend it on? 2) You have to apply for forgiveness? Thanks!

If one has already filed their 2019 and 2020 Form 1040 taxes but did not do so with a Schedule C, can they still apply and qualified for the PPP? They used a Form 1040 but did not use W-2’s.

Gerri Detweiler says:

I’m not sure I understand. If you filed taxes to report your business income to the IRS how did you report it if not on Schedule C? What other form did you use?

If my business is ran on the side and I do it when I can as a sole proprietor accepting only cash payments because I deal with the public meeting them one on one either picking up inventory or selling the then new inventory after I have fixed it, how is it that I don’t qualify it my losses and my expenses, same for my gains and profits? I only take cash because I work through social media and I recently had my identity stolen. Another reason is that I will have people wanting things and set up a time but they never show up. I accept paypal but the hard truth is most don’t have that. Is there no way around that?

Gerri Detweiler says:

Are you paying taxes on that income by reporting it on Schedule C with your tax return? If so you may be able to use your tax records to apply. As for your business, going forward, you can accept cash but it’s a good idea to deposit it into a business bank account so you have records of your revenue.

Gerri Detweiler says:

If you’re talking about a PPP loan, that program is closed to new applications. For other business loans you may not need a business bank account but it can be very helpful.

I’ve applied through womply, I’m an independent contractor/Instacart+Uber grocery/meal delivery guy. 1099 IC. I was approved for first draw with Harvest as the lender. I have a “Funding Problem”, according to womply, they tried to send the funds via ACH and the payment was returned. Bank details incorrect or the bank rejected the payment. I’m on hold with the bank now and assuming the problem is that my bank account is personal, not business. The document upload from Feb 2020 proving I was in business is from this account. How do I receive funds when all I have is a personal checking account?

Hi Gerri,
Thank you so much for helping everyone with all of these questions!
Last yesr when all of this happened we were in the middle of a move only to find out that the people renting the house we were buying decideed not to leave, which set off a whole chain reaction untill August. I am a sole propritor in the travel and hospitality field. I filed my schedule c on time, but moved 3 times in 5 months. I applied for an EIDL loan and was offered 25,000, I chose to only take $14,000.00. Now I can not find any of the information I had for my 2019 taxes and was sent a letter that I can apply for more, up to $103,000.00. I”m not sure what to do. I do not have any collateral, except my computer and car, but could use more funds for advertising.
Another question is that my huby has
always helped me and I don’t know if I put him down as an emplyee (all others are sent 1099’s), and we knew he was going to be eligable for ss starting in Aug. What shoud I do? Where can I find my original application? Does it matter?
Thank you
Cheryl

gerri says:

Cheryl – I’d suggest you reach out to SBA or a partner agency for help. This article will give you some resources that may assist. See points #2 and #3 in particular.

Can I apply for PPP if I have a 1099 ? I work with a nursing agency ? I commute 3 1/2 hours from Vegas to California since June of 2019 . Also I have bank statements ect

gerri says:

I didn’t start my gig worker job until Sept 2020. I filed my 1099nec under 1040 schedule 1. Do I qualify?

gerri says:

if someone worked under the table can they qualify for the ppp loan ? Or if they worked without a business liscense.

gerri says:

A business license is not necessarily required but if you did not report your income to the IRS you will not be eligible.

I have been on 1099 since August 2019 and deposits were made in my baby mother’s bank account up until April 2020. I do not have any bank statements prior to May 2020 in my name.

Gerri Detweiler says:

Did you report your income to the IRS using Schedule C? If so you can use the Schedule C (line 7 or line 31) to calculate your loan amount.

Hi, I own my LLC/Partnership for 4 years but never took payroll or a draw, Can I still get a PPP loan? thanks

Gerri Detweiler says:

Do you file Schedule C to report your income from your LLC to the IRS? If so you may use Line 7 gross income on Schedule C to qualify.

gerri says:

You may. The instructions for calculating loan amount is in this document. Just keep in mind you may use 2019 OR 2020 – your choice.

I have a small business since last year but I have not filed it on either of my taxes. Can I still file for the ppp?

Gerri Detweiler says:

Megan – Your business must have been operational by February 15, 2020 to apply for PPP. If you were and you will file you may use gross income (line 7) from your tentative Schedule C but you need to at least prepare that so you can apply for the correct amount. I’d suggest you try to get caught up on your business taxes asap of course.

I’ve attempted to apply for a PPP Loan but was told i didn’t qualify by my bank because I’m an LLC that hasn’t shown a profit on my 1065 tax form.
What more can I do to hopefully get a better result.

Gerri Detweiler says:

Dwayne – perhaps you want to try another lender. The SBA changed the calculation for self-employed individuals who file Schedule C. As I mentioned in the article you may now use gross income (Line 7 on Schedule C) rather than net profit. Nav will match you to lenders making PPP loans using that formula. Get started here.

I applied for the second draw yet my bank denied me indicating payroll documentation provided did not substantiate requested loan amount. What does that mean? I’m a sole proprietor. I requested the maximum loan amount.

Gerri Detweiler says:

I don’t know since Schedule C filers don’t generally have payroll. I’d suggest either reaching out to the lender or applying elsewhere. Nav will match you to lenders making PPP loans using Schedule C. Get started here.

Hi. I have been self employed since December 2019 I have not filed my 1099 yet. And the proof I have for pay is my recites. Would I still qualify

Gerri Detweiler says:

Billie – Since you can apply based on gross income you should absolutely try. I’m not sure what you mean by receipts though – what kind of receipts? 1099s? I do recommend you at least fill out a tentative Schedule C. It shouldn’t be too hard but if you have questions an accounting or tax preparation service can help.

Hi I filled the ppp for 2020 and after that I realized that i was able to fill the ppp for 2019 which gonna be much prophet for me !
My question is can still apply again for the 2019 ppp ?!
Is there anyway that I can fix this and have my ppp for 2019 instead of 2020?!

Gerri Detweiler says:

Noor – If you have already submitted your application to a PPP lender you must ask them to help you change your application. Reach out to your lender. If the loan has not been approved by the SBA it may be possible.

Gerri Detweiler says:

Gerri Detweiler says:

Hey gerri my name is Nounagnon Im a self employed since 2 years but the problem is I never filed taxes because I didn’t have a SSN but now I’m a permanent resident but my wife get a w2 and she files the taxes jointly for 2020 so please tell there anyway I can get the PPP or any type of loan to start my business. Thanks hope Roy reply

Gerri Detweiler says:

Unfortunately if you did not file a tax return reporting your self employment income (I believe you could use a TIN or EIN instead of a SSN) then I don’t see how you will not be able to get PPP based on that self employment income. If you are looking for startup financing for your business I recommend you watch our youtube video on that topic. Have you considered filing an amended return with your Schedule C for your self employment income from prior years? That may make you eligible for PPP. (I can’t say it WILL – that will depend on your specific situation.)

Hello! I have a unique (?) situation. I am an business owner (LLC, I’m the owner and the only employee). I am also an independent contractor for a separate company completely unrelated to my business. When I do work for them, they pay ME, the contractor, not my business. In 2020 I applied for the second round of PPP for MY small business. I was approved and since then already submitted my forgiveness documents/requests (which were also approved, yay!). I know MY business does not qualify for the second wave of PPP as I show no quarterly or gross income loss between 2019 and 2020, so I’m not interested in applying again for that business.
However I am also a 1099 receiving independent contractor for a completely different company. I worked as a contractor for them in 2018, 2019, 2020, and 2021. I have my 2019 and 2020 1099s available now so I can compare my 2019 contractor income to the 2020 contractor income. My work was in nursing homes so as you could imagine I lost a significant amount of income in 2020 compared to 2019 as a contractor (over $10K. the increase in my business profits DID not cover that amount of overall income loss!). I never collected unemployment and both entities (my business and me the independent contractor) are filed on separate Schedule C’s in my tax return. I would like to apply for the PPP based on my now known independent contractor losses, but every time I apply I am asked if I own a business that already received PPP. When I’ve answer yes, in other application sites, I am not allowed to proceed with the PPP application. How do I move forward with applying under independent contractor status without the business owner status getting in the way?? Any advice as to where I should go or what I should do??
Thanks in advance.

Gerri Detweiler says:

It’s confusing no doubt. The SBA guidance doesn’t provide a lot of specific information on applying for PPP for multiple businesses. It sounds to me like you are describing a situation where you apply for PPP with two different businesses: the LLC and your independent contractor business. Do those two businesses have different EINs or TINs? Different addresses? If the information is the same I anticipate you’ll run into problems and it may not be something a lender can even help with as it could create hold codes with the SBA. (The SBA is trying to avoid duplicate PPP loans which have been a problem in the past.) Since your independent contractor business did not apply for PPP the first time around you my understanding is that it would be requesting a first draw PPP loan not a second draw PPP loan since you didn’t get one before through that business. Remember that owner’s compensation for that first PPP loan can’t exceed $20,833 combined. Also I am not 100% certain on all of this since it’s a scenario not clearly addressed in the guidance. My best advice is to reach out to your SBA district office to see if someone there can advise. Going forward, is there any reason why you can’t bill your independent contractor business through your LLC? Or consider depositing funds you earn as an independent contractor to your LLC account so it all goes through the LLC? You may want to talk with your accountant to determine what makes sense.

Thank you. The independent contractor deal and the business/private practice I own are completely separate. My private practice business/LLC has its own EIN, its own address, its own bank account. As a contractor, it is me (the person/professional with the title) who is hired to do the work. In that respect I’m a sole proprietor – I never legally established “myself as contractor” as a separate business. When the contracting company pays me, they pay me the person/professional, directly and my payments are deposited into bank account completely separate from my business LLC. Regarding contracting my LLC, I’m not allowed to use my LLC as the “contractor” with the contracting company because they they don’t contract other practices (like my private practice) to do contract work, only individuals (partly because they have a private practice division). It’s even written in my contract that neither I (the person) nor any business I own (like my practice) are allowed to take on clients or companies *they* have a relationship with as my own, under my name, or under my business name. So everything is and has to stay completely separate (im ok with that!) My owners compensation for that first PPP distributed to my LLC business was under 5K. I’m way under the $20K threshold, even if I were to get the PPP approved for myself as independent contractor, per estimations, it’d be about 3K, so combined (LLC and contractor PPP) wouldn’t even touch 10K. That being said after such a huge financial independent contracting income loss, I could seriously use that 3K. Anyway, I knew my situation was unique, lol. Thanks again. I’ll accept any other advice you have and I’ll reach out to the local SBA for help!

Gerri Detweiler says: