There has been a lot of confusion around how independent contractors engage with the Paycheck Protection Program. See, for example, this letter to Treasury Secretary Mnuchin y Forbes Senior Contributor Tony Nitti delineating some vexing points.
To clarify, independent contractors are not included in an employer’s PPP loan amount.
“As an employer and borrower, what you pay independent contractors and 1099s does not count toward your payroll cost in calculating how much you can borrow and how much can be forgiven,” says U.S. Chamber of Commerce Executive Vice President Neil Bradley.
While small businesses and solopreneurs have had access to PPP loans since last Friday, April 3, there is a separate PPP loan process for 1099 workers. 1099 workers will be eligible to apply for PPP support this Friday, April 10. We will share more information as it’s available.
Note: This is a summary of aggregated information from other parties and does not express the direct advice of Sam Goldenberg & Associates.