The U.S. Chamber of Commerce executive vice president and chief policy officer Neil Bradley clarified that business owners do not have to include independent contractors toward their payroll when calculating the size of their Paycheck Protection Program (PPP) loans.”The regulations that came out last night make it very clear,” Bradley said. “As an employer and borrower, what you pay independent contractors and 1099s does not count toward your payroll cost in calculating how much you can borrow and how much can be forgiven.”Small businesses and solopreneurs are able to begin applying for PPP loans as of Friday, April 3rd. Independent contractors–who file their taxes using 1099 forms–have the ability to apply for their own PPP loans beginning April 10th.

Generally, a small business has 500 employees or fewer.  A sole proprietorship is usually a one-person business. Independent contractors can include doctors, dentists, veterinarians, lawyers, accountants, and others “who are in an independent trade, business, or profession in which they offer their services to the general public,” according to the IRS. They file their taxes using 1099 forms.