I also applied for the PPP loan in April and received the loan money on 05/04/20. I just received my approval letter yesterday (effective date 04/12/20). Can you get a PPP loan and unemployment benefits at the same time? Frequently asked questions What’s the biggest loan I can get? To achieve full PPP loan forgiveness, at least 60% of the funds must be used in paying “payroll expenses,” which for many independent contractors and self-employed people means paying themselves, and you can spend up to 100% of your funds to pay yourself if … They say that independent contractors may apply for both unemployment and PPP loans, but they should not have both. Like … Should I Apply for both PPP and Unemployment as a worker at my own business? The PPP limits compensation to an annualized salary of $100,000. If you’re a sole proprietor (1099) and are interested in beginning your application process, start here. You can find the video at the bottom of this article— I recommend skipping to section 1:50. From Freedom Tax Accounting. For more information on PPP loans generally go here . Hello. For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation share. Hi terry, here’s a complex one…i’m an independent contractor (consultant) who was furloughed from my client. I'm a Sole Proprietor, Independent Contractor, or Freelancer. We do not have guidance on this question from the state or federal government, and so our response is somewhat speculative. I’ve debated about applying for a PPP loan, but it gets confusing since I keep reading that I have to “come off” of unemployment if I were to receive a PPP loan. Independent contractors, gig workers, and other self-employed individuals have the opportunity to get even more PPP funding in spring 2021 than ever before, thanks to some recent PPP rules changes for schedule C borrowers, and they can have their loan completely forgiven, so long as they follow a few important steps along the way. For example, an independent contractor who receives a PPP loan to cover her income she would have received from commissions should not then apply for unemployment compensation for the period covered by the PPP loan. finally started receiving PUA unemployment benefits. i also applied for PPP loan and received approval (via Bluevine) but haven’t activated (small amount –$6000). That’s the question we’re going to answer in this video. If you apply for unemployment … I live in Pennsylvania and I am an independent contractor. PPP loans are intended to help businesses keep their workers on the payroll. 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