PPP Updates

 

Are you an independent contractor, sole proprietor, or self-employed?

The PPP rules have changed, which means you can likely qualify for more funds through PPP than before. The major changes include:

  • How much money you receive from PPP can now be now based on your gross revenue not your profit (more people will now qualify for more money from PPP);
  • You do not have to be a citizen to apply for PPP. You can be a lawful U.S. resident and use your Individual Taxpayer Identification Number (ITIN) to apply;
  • You can apply even if you have struggled to make student loan payments on federal student loans.

When you apply for PPP, you are taking on a loan. If you can meet the rules of the program, some or all of the amount you borrowed may be forgiven.

You will be responsible for keeping track of when you need to apply for forgiveness. The SBA (who provides the PPP loans) will not contact you to tell you to apply for forgiveness. If you do not apply for forgiveness, you will have to pay back the loan with interest. You can find a helpful FAQ about forgiveness here.

In the period that you are "covered" by PPP, the amount of money you use to pay yourself is considered income. You cannot receive both PPP and PUA (unemployment) at the same time.

At least 60% of PPP funds must go to payroll for yourself and your employees if you have employees.

All applications must be complete and submitted to the SBA by 3/31/21 in order to be considered for approval.

You will need to submit your Schedule C for 2019 or 2020 and your 1099s (if you receive 1099s) with your application. Learn more about the types of documentation you will likely need for your application here.

Learn more about PPP by visiting the SBA website here.


Ready to apply?

If you have a bank or credit union, ask them if they can help you with the PPP application. If you do not have a bank or credit union, you can apply through:

Vermont Economic Development Authority (VEDA)

Vermont Community Loan Fund (VCLF)

You can apply online. You need to send your lender a completed application and forms for your business.

If you file a Schedule C with your taxes, click here for the application. For a helpful step-by-step tip sheet for filling out the application, click here.

If you do not file a Schedule C, click here for the application.

If you have already received a PPP loan and are interested in applying a second time, please speak with the lender that you worked with on your first application to see if you are eligible to apply again.

If you need help applying for PPP, please contact us and we may be able to connect you with a lender who can help you with your application (you will need to contact us before 3/25/21 to receive support with the application). Please email Kathryn at kbaudreau@cvoeo.org.

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CVOEO addresses fundamental issues of economic, social, environmental, and racial justice and works with people to achieve economic independence.


 

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