Sole Proprietor - Independent Contractor - Self Employed

Step 1

We recommend that you pull these documents together before you start the application.

If this is your 1st PPP Loan

In most cases you are allowed to use either 2019 or 2020 payroll costs to calculate your loan amount.

You will need the following:
• IRS Form 1040 Schedule C
• Form 1099, if you are an Independent Contractor
• February 2020 bank statement
• Picture of front and back of your driver’s license

**If you have employees, then you ALSO need to provide:
• Payroll summary report. If you include contributions for healthcare and/or retirement in your payroll costs, then your report must include those figures.
• State unemployment insurance tax form you submitted to your state.
• IRS Form 940 or 941 forms for all 4 Quarters
• A payroll statement or 941 form from Q1 2020 to establish you paid employees at that time.

If this is your 2nd PPP Loan

To be eligible for a 2nd draw PPP loan, you must have experienced a 25% drop in Gross Revenue in either the entire year of 2020 or in any single quarter as compared to the corresponding quarter in 2019. If your loan is lower than $150,000 then you can wait to show evidence of this drop when you apply for forgiveness and not now.

In most cases you are allowed to use either 2019 or 2020 payroll costs to calculate your loan amount.

You will need the following:
• IRS Form 1040 Schedule C
• Form 1099, if you are an Independent Contractor
• February 2020 bank statement
• Picture of front and back of your driver’s license

**If you have employees, then you ALSO need to provide:
• Payroll summary report. If you include contributions for healthcare and/or retirement in your payroll costs, then your report must include those figures.
• State unemployment insurance tax form you submitted to your state.
• IRS Form 940 or 941 forms for all 4 Quarters
• A payroll statement or 941 form from Q1 2020 to establish you paid employees at that time.

Step 2

Your loan amount:
After adding up all of those payroll costs (your net income, employee wages, healthcare contributions, retirement contributions, and state unemployment insurance tax) you then divide by 12 months to get an Average Monthly Payroll (seasonal employers have different rules). Then, multiple the Average Monthly Payroll by 2.5 months. That result is the loan amount you are eligible to apply for. Have these figures ready for the application.