SBA’s Paycheck Protection Program Opens for Independent Contractors, Self-Employed Workers Friday

(April 10, 2020 9:18 AM) Beginning today, Friday, April 10, independent contractors and sole proprietors can apply for $349 billion in Paycheck Protection Program forgivable loans through the U.S. Small Business Administration. The application period for small businesses already opened on April 3 to help them keep their workers on the payroll. The program is awarding loans on a first come, first serve basis with funding caps in place. Michigan businesses are encouraged to apply early and to visit MIPaycheckProtection.com for updates on the application process.

All loan terms will be the same for everyone. The loan amounts will be forgiven as long as:

• The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made
• Employee and compensation levels are maintained

Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. Loan payments will be deferred for 6 months.

The application period for independent contractors and self-employed individuals opens today.

The State of Michigan has created a website, Michigan Paycheck Protection Program with detailed information on the program.