As the COVID-19 pandemic continues to impact the economy, many businesses and independent contractors have been struggling to stay afloat. To provide some relief, the U.S. government created the Paycheck Protection Program (PPP), which offers forgivable loans to small businesses and independent contractors in order to help them maintain payroll and other business expenses.
If you are an independent contractor looking for a PPP loan, one option to consider is Chase Bank. Chase is one of the largest lenders participating in the program, and they have streamlined the loan application process for independent contractors.
To apply for a PPP loan as an independent contractor through Chase, you will need to gather some essential documentation. This includes your 2019 Form 1040 Schedule C, which shows your income and expenses as an independent contractor, as well as any other relevant tax forms or financial statements.
Once you have your documentation in order, you can begin the application process through Chase`s online portal. The application will ask for basic information about your business, such as your legal name and business address, as well as your average monthly payroll costs.
It`s important to note that as an independent contractor, your “payroll costs” may be a bit different than those of a traditional small business. In general, your payroll costs will include your net earnings for 2019 (as reported on your Schedule C), plus any employee benefits such as health insurance or retirement contributions.
After you submit your application, Chase will review your documentation and determine whether you are eligible for a PPP loan. If approved, you will receive the funds directly into your business bank account. As long as you use the funds for eligible expenses (such as payroll, rent, or utilities) and meet other program requirements, the loan will be forgiven and you will not have to repay it.
Overall, applying for a PPP loan as an independent contractor through Chase is a straightforward process. By taking advantage of this program, you can help ensure your business stays afloat during these difficult times.