Let’s Talk About Loans for the Self-Employed

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If you are a self-employed small business owner, the team at Small Business Promote can almost hear your angst and worry coming through the internet. So many businesses across America have been shutdown due to the coronavirus pandemic and government orders.

We know this is a very trying time for you as a self-employed business owner. But there is hope and in this blog post, we are going to direct you to resources that can help you in your time of need. Most likely you have heard about the government’s PPP (Payroll Protection Program) loan offering and you have either applied for assistance through this program or you are considering it. To find out if you qualify for the PPP loan program, read this article from Banking Journal. The article goes into great detail about whether or not you qualify for a PPP loan as a self-employed person. Below is a quote from the article:

The rule clarifies that self-employed individuals who filed Schedule C with their federal income taxes and were operating on Feb. 15, 2020, are eligible for PPP loans, except for partners in a partnership. (The partnership is the eligible entity, and the rule provides guidance for calculating the self-employment income of general active partners as payroll cost.)

The rule also provides processes for self-employed applicants to calculate their maximum loan amount, depending on whether they have employees or not. Self-employed PPP loan recipients may use the proceeds for “owner compensation replacement,” calculated based on monthly net profits.”

The major problem with the PPP loan program at this stage is that most of the money allocated has already been claimed. There is talk of another round of stimulus being provided by the government with more money for small business owners, but of course nothing is for sure yet.

We would like to suggest an alternative to the PPP loan program, even if you have already applied with the government. There are many private companies that offer loans to the self-employed. This article from Credit Karma lists things you need to know if you are considering a traditional loan as a self-employed individual.

Another great article for you to read as a self-employed small business owner comes from The Associates, who offer self-employed loans. The title of the article is 5 Reason Self-Employed Loans Are For You. The article goes into great detail about each of the 5 reasons self-employed loans are for you, but for your convenience we have listed the 5 reasons below:

  1. No Need For Bank Statements
  2. Quick Access to Capital
  3. Variety of Providers
  4. Credit Building Potential
  5. Retaining Control of Your Business

We feel that the Associates could be your best bet for a quick, no hassle self-employed loan. If you are a self-employed small business owner who is in a bind financially like most are at this time, we would love to hear about your current experiences. Please leave a comment below and let us know how things are going.

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