Dear Clients, Colleagues, and Friends:
As those who have been involved in the Paycheck Protection Program (“PPP”) process know, it has been frustrating. Employers eligible for PPP have experienced limited windows to apply and conflicting directions from the SBA and their banks. When the PPP is planned to open to Independent Contractors and Self-Employed on April 10, 2020, we anticipate similar results but hope that the SBA and banks may have figured out their shortcomings by then.
Therefore, we encourage our Independent Contractor and Self-Employed clients to prepare the PPP application as if it will be accepted on Friday, April 10 by a bank with which you currently have a business checking account, and keep monitoring the status of their specific bank. Applications are available here: https://www.sba.gov/document/sba-form–paycheck-protection-program-borrower-application-form
We also received information that the government will add an additional $250 billion to the $349 billion originally slated for PPP in forgivable loans. Please remember that for the loans to be forgivable, they must be used for payroll. More information is available here: https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf
In addition, the California Employment Development Department (“EDD”) will extend unemployment benefits to Independent Contractors and Self-Employed individuals who have been impacted by the pandemic. Please visit their page for updates: https://www.edd.ca.gov/about_edd/coronavirus-2019.htm
Should you have any questions about your specific scenario, PPP application, or payment formula, please reach out to our office at (310) 475-0321 or email. We are all safely working from home and reachable by phone or email.