US Chamber PPP Best Practices

US Chamber of Commerce & Inc. Host National Small Business Town Hall

In this virtual town hall, experts from the U.S. Chamber of Commerce,, SCORE, NASE (National Association for the Self-Employed), and others provided clarity on the Federal Stimulus Package and answered commonly-asked questions about the PPP and EIDL.

Updates on PPP & Guidance for Independent Contractors

U.S. Chamber’s Executive Vice President and Chief Policy Officer Neil Bradley shared updates on PPP and guidance for independent contractors and self-employed who as of April 10, 2020, are eligible to apply.

A separate application form for independent contractors has not been provided at this time. Independent contractors should:

  • Know your status. As an independent contractor, you qualify if you generated income last year.
  • Prepare. Gather your 1099s, or other tax records to verify income.
    • NASE recommends using your Schedule C as this is where the profit and loss from your business is recorded. Visit the IRS for the form>>
    • On the PPP, “payroll” for independent contractors is defined as net earnings from self-employment.
  • Get support. If you do not have an existing relationship with a bank or financial institution, know that fin-techs are currently being approved to provide support.
    • Reach out to your local banker, your landlord, an accountant/CPA for guidance on business deductions for next year’s tax returns, and your insurance professional.
  • Start today! There are 23 million self-employed businesses that generated income in 2019. The sooner you start the application, the better off you’ll be.


Common Mistakes in Applying for the PPP

  • Using the incorrect amount for payroll. Make sure to include gross revenue, including tips, commission, etc.
  • Including sub-contractors or independent contractors.
  • Not capping at $100K.

Clarity on PPP Loan Forgiveness

Two tests will likely be applied when looking at loan forgiveness.

  • What is your maximum amount that you’re eligible for in loan forgiveness? Keep meticulous records for the 8 weeks after the loan originated – payroll, interest on debt, rent, utilities, etc.
  • What happened to your employee headcount? If it has gone down or you’ve reduced pay by 25%, you may lose some forgiveness. If you’ve let people go, but bring them back and maintain the same level through June 30, your loan should be forgiven in full.

Frequently Asked Questions

  • If you’ve submitted multiple PPP applications at multiple financial institutions will this flag as fradulent? It’s too soon to tell. Whatever you do, make certain you never receive more than 1 PPP loan. Make lenders aware so they know that if something does get flagged at SBA they can help you.
  • As a solo entrepreneur, can you apply for unemployment and EIDL? Yes, given the federal mandate you are eligible. Typically, solo entrepreneues are not eligible for unemployment, but this has been waived with the federal mandate.
  • Can I receive EIDL and PPP? Yes, as long as you don’t use EIDL funds for payroll. Use PPP funds on payroll and EIDL for capital improvements or other non-payroll operating costs.
  • What is the Mainstreet Lending Program? This is for businesses with up to 10,000 employees and can be accessed directly through your bank or financial institution. Essentially, the Federal Reserve will facilitate local banks providing these loans through the Reserve paying 95% of that loan from the bank.
    • Program is still being finalized and anticipate applications available in 1 week.
    • Minimum of $1 million
    • You can receive this funding in addition to PPP funding

Post expires at 9:22pm on Saturday October 10th, 2020



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