Know how to get PPP loan forgiveness if you are self employed, independent contractor or sole proprietor.

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Call us at 407-344-1012, email us at info@freedomtaxfl.com, or visit our website at [ Ссылка ], if you are self employed, independent contractor, or a sole proprietor that got approved an SBA PPP Paycheck Protection Program loan and need help in getting your PPP loan forgiven.

Warning: Guidelines for PPP loan forgiveness may have changed from the date of the recording of this video. Please consult your CPA, or other professional to make sure you have the latest guidelines for PPP loan forgiveness.

The Paycheck Protection Program helps self-employed people and small businesses meet payroll and other expenses while so many businesses are shut down due to COVID-19. Even better: Many borrowers will be able to have their loans forgiven, and they won’t have to pay income tax on the forgiven amount.

Self-employed workers who have been hit hard by coronavirus shutdowns may be able to find some relief from the federal government’s Paycheck Protection Program.
The PPP is designed to help small businesses — including self-employed people — meet critical expenses like payroll, mortgages and rent over an eight-week period.

Measures like social distancing and stay-at-home orders in cities and states across the country have left thousands of business owners and self-employed people calculating exactly how the coronavirus pandemic will affect their finances. The PPP is intended to help them make it through the financial crisis — but the last day to apply is June 30, 2020. And funds are limited, so if you plan to apply, do it as soon as possible.

Let’s explore who’s eligible for the PPP and how it works.

What is the Paycheck Protection Program?
The Coronavirus Aid, Relief and Economic Security Act, or CARES Act, signed into law on March 27, created the Paycheck Protection Program, which is a federal loan program administered through the U.S. Small Business Administration, or SBA.

The program specifically intends to help small businesses keep workers on the payroll and meet essential expenses needed to keep their doors open. Borrowers can apply for 1% fixed-rate loans through any participating federally insured bank, credit union or Farm Credit System institution.

Small businesses and sole proprietorships can apply for these loans as of April 3. Independent contractors and self-employed workers can apply as of April 10.

Who can apply?
The Paycheck Protection Program is open to small-business owners, solopreneurs, independent contractors, self-employed workers and other small organizations affected by COVID-19. Private companies, nonprofits and veterans’ organizations all qualify.

You may qualify if your business was operating as of Feb. 15, 2020, and you

Have 500 or fewer employees
Work as an independent contractor
Work in the gig economy
Are a sole proprietor
Are self-employed
Restaurant, hotel or other hospitality company owners with multiple locations can qualify if each individual location employs fewer than 500 people.

If your company has more than 500 employees, you may still qualify for the program if you meet SBA criteria for your industry. You can check online using the SBA’s “Size Standards” tool.

Federal loans offered through the PPP are highly specialized and targeted for short-term relief. You’ll want to read the terms carefully before applying to make sure you’re eligible and that the program offers what you need.

How much can I borrow?
PPP loans are intended to help eligible borrowers cover eight weeks of payroll costs and debt payments. If you’re eligible for a loan, you can borrow up to two months of your average monthly payroll costs from the last year plus another 25% of that amount — up to a maximum loan amount of $10 million. Rules are slightly different for seasonal businesses.

When calculating a loan amount, businesses may count the following as payroll costs:

Employee compensation, including salaries or wages, commissions and tips
Vacation, parental, family, medical or sick leave pay
Dismissal or separation allowances
Group healthcare benefit payments, including insurance premiums
Payments to provide retirement benefits
State or local taxes assessed on employee compensation
If you’re an independent contractor or a sole proprietor, you can include the following as payroll costs:

Wages
Commissions
Income
Net earnings from self-employment or similar compensation
Note that you can’t count the following as payroll costs:

Compensation for employees living outside of the U.S.
Salary amount in excess of $100,000 for each employee
Federal employment taxes
Sick or family leave wages for which you received a credit under the Families First Coronavirus Response Act

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