As the COVID-19 pandemic continues to impact the economy, many independent contractors have been left struggling to make ends meet. However, the Small Business Administration (SBA) has established a program to provide relief to these individuals: the Paycheck Protection Program (PPP).

If you`re an independent contractor, you may be wondering what the guidelines are for accessing this program. Here`s what you need to know.

First and foremost, you must have been in operation on February 15, 2020, and have been in receipt of income from freelance work, self-employment, or independent contractor services. Additionally, you must have filed a 2019 Form 1040 Schedule C, or a 2018 Form 1040 Schedule C if you have not yet filed your 2019 tax return.

To apply for the PPP, you will need to contact a participating lender. The program is being administered through banks and other financial institutions, so you will need to do some research to find one that is participating in the program.

When you apply for the PPP, you will need to provide documentation to show that you are eligible for the program. This may include tax returns, invoices, or bank statements.

If you are approved for the PPP, you will be able to receive up to 2.5 times your average monthly income over the past year, up to a maximum of $100,000 per individual. The loan can be used to cover various expenses, including payroll, rent, and utilities. If you use the loan funds for eligible expenses and maintain your workforce during the designated period, you may be eligible for loan forgiveness.

It is important to note that the PPP has limited funding, so it is important to apply as soon as possible. Additionally, be sure to carefully review the guidelines and requirements to ensure that you are eligible and that you understand the terms of the loan.

In summary, the SBA PPP provides a lifeline for independent contractors who have been impacted by the COVID-19 pandemic. If you`re an independent contractor, take the time to research the program and determine whether it is a viable option for you. With the right documentation and preparation, you may be able to receive the financial support you need to weather this challenging time.