# The SBA issued an Interim Final Rule on April 2, 2020 (and extra guidance a few times following) outlining just just how this program would function and applying parts 1102 and 1106 associated with CARES Act.

The SBA issued an Interim Final Rule <a href=https://maxloan.org/title-loans-wa/>Washington auto title loans</a> on April 2, 2020 (and extra guidance a few times following) outlining just just how this program would function and applying parts 1102 and 1106 associated with CARES Act.

The guideline confirmed that single proprietorships, separate contractors, gig economy workers, and self-employed individuals are all qualified to receive the PPP. Eligibility for the system, nevertheless, includes a caveat: separate contractors and single proprietorships try not to count as workers “for purposes of a borrower’s PPP loan calculation,” or “PPP loan forgiveness,” because “independent contractors are able to make an application for a PPP loan.” With this particular interim rule that is final spot, separate contractors and single proprietorships must use by themselves when it comes to great things about the PPP.

## Much like PPP, the applicant will have to submit necessary paperwork to ascertain eligibility, such as for instance payroll processor records, payroll income tax filings, or Form 1099-MISC, or earnings and costs from the single proprietorship. Bank documents will suffice in the event that debtor doesn’t have other designs of documents.

Qualified entities and individuals that are self-employed make an application for both PPP and EIDL, to your level the EIDL can be used for purposes except that those allowed for PPP loans. But, in the event that entity took out an EIDL loan between Jan. 31, 2020, and April 3, 2020, and utilized that loan money for payroll expenses, the debtor continues to be qualified to receive the PPP, nevertheless the debtor must then utilize the PPP to refinance the EIDL loan.