As an independent contractor, you may be eligible for a Paycheck Protection Program (PPP) loan through the Small Business Administration (SBA). However, before you can apply, there are a few documents you need to gather to prove your eligibility and income. Here are the documents independent contractors need for PPP:
1. IRS Form 1040 Schedule C – This document shows your business`s profit or loss from the previous year. Independent contractors typically file this form as part of their personal income tax return.
2. 1099-MISC forms – If you received any 1099-MISC forms from clients showing payments for work performed during the previous year, you will need to provide them as proof of income.
3. Bank statements – You`ll need to provide bank statements for the previous year to show your business`s financial activity. This will help determine the loan amount you are eligible for.
4. Articles of incorporation or organization – If you have registered your business with the state, you will need to provide articles of incorporation or organization to prove that your business is legitimate.
5. Driver`s license or passport – You will need to provide a valid government-issued ID to verify your identity.
6. Payroll records – If you have any employees, you will need to provide payroll records to show their income and employment status.
7. Utility bills – You may need to provide utility bills or other proof of your business`s physical location to show that it was operational before the pandemic hit.
It`s important to note that the specific documents required may vary depending on the lender you are working with. It`s a good idea to check with your lender ahead of time to ensure that you have everything you need to apply for the PPP loan as an independent contractor.
In conclusion, gathering the necessary documents as an independent contractor for PPP can be time-consuming, but it`s worth it to potentially receive financial relief during these challenging times. By being prepared and providing the required documents, you can increase your chances of being approved for a PPP loan.