Starting today, April 10th, independent workers (self-employed, freelancers, independent contractors, etc.) can apply for Paycheck Protection Loans (PPP), which are part of the federal CARES Act stimulus package.
The loans allow independent workers to access to up to $10,000 in forgivable loans to cover payroll or wages they pay themselves over the eight weeks following the signing date. The loans can be as large as $10 million and are repayable over two years with an interest rate of 1%.
The banks started taking PPP applications last week, but only from small businesses with employees. This was because the final rules related to the self-employed weren't finalized until this week.
You need to apply to through an SBA lender, a federally insured credit union, or a participating Farm Credit System institution.
Don't be surprised if it's hard to find a traditional lender who will accept your application, or if you find one it takes a long time to get through the application process.
The banks are swamped with applications from small businesses and are prioritizing existing loan customers. New customers and even customers with just a bank account and/or credit card are a lower priority.
The fintech companies - Intuit, Square, Paypal, etc - are also providing PPP loans. They will likely process loans and deliver the money much faster than the banks will.
See CNBC's Paycheck Protection Program aid opens for sole proprietorships and independent contractors for more detail on the PPP and other loan options as part of the CARES Act.
