Small Business

1099 independent contractors and CARES Act forgivable loans

Posted in Small Business

Several people have asked how the Paycheck Protection Program forgivable loans (sometimes referred to as grants) created by the CARES Act apply to 1099 independent contractors. The early information released by the Small Business Administration created a lot of confusion on this topic. On April 2, the SBA released new regulations that clarified it. Let’s use an example to help make it clear. Let’s say a company called XYZ Enterprises, Inc. has 10 employees and an owner who works at the company. XYZ Enterprises also uses the contract services of Bob Smith, and issues him a 1099...

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