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The Paycheck Protection Program (PPP) has been a lifeline for many businesses during the COVID-19 pandemic. The program provides loans to help businesses keep their employees on the payroll. But what about individual contractors? Can they apply for PPP?

The answer is yes, individual contractors are eligible for PPP. In fact, the program was designed to help all small businesses, including sole proprietors, independent contractors, and self-employed individuals.

To be eligible for PPP, you must have been in business before February 15, 2020, and have fewer than 500 employees. If you are an individual contractor, you must have filed a Schedule C with your 2019 tax return to show your income and expenses.

The loan amount you can receive is based on your average monthly income. For individual contractors, this is calculated using your net profit from 2019. You can receive a loan amount equal to 2.5 times your average monthly income, up to a maximum of $20,833.

The loan can be used for payroll costs, rent, utilities, and mortgage interest. You must use at least 60% of the loan for payroll costs to be eligible for forgiveness.

Applying for PPP as an individual contractor is similar to applying as a small business. You can apply through a lender that is participating in the program. You will need to provide documentation to show that you are eligible for the loan, such as your 2019 tax return and proof of payroll expenses.

It is important to apply for PPP as soon as possible, as funds are limited and may run out before all eligible businesses have received a loan. The program is currently set to close on May 31, 2021, but may close earlier if funds are exhausted.

In conclusion, individual contractors are eligible for PPP and should take advantage of this program if they need financial assistance during the COVID-19 pandemic. Applying for PPP is similar to applying as a small business, and you can receive a loan amount based on your average monthly income. Don`t wait to apply, as funds are limited and may run out before the program ends.