SBA Paycheck Protection Program

Authorized Lender

Paycheck Protection Program (PPP) loans*

Kabbage helps sole proprietors and independent contractors apply online for SBA Paycheck Protection Program loans.

  • Ready to apply for a PPP loan?

    Make sure you have the right documents and review FAQs before you get started.

    Apply now
  • Want to know your PPP loan application status?

    Log in and visit the SBA Loan tab of your dashboard



    Sign in

Here’s how it works:

  1. Sole proprietors and independent contractors are eligible for PPP loans of up to 2.5 times of your average monthly payroll during the year preceding the application. Note, Kabbage can only process loans of up to $2 million.

  2. If all employees are kept on payroll, SBA will forgive the portion of the loan used for payroll, rent, mortgage interest or utility payments – for up to 8 weeks after the loan is issued and up to 100% of the PPP loan amount.

  3. All or part of your loan proceeds may be eligible for loan forgiveness. Any amount that is not forgiven will be treated as a two-year loan with a 1% fixed interest rate.

  4. All payments (principal, interest and fees) are deferred for 6 months; however, interest will continue to accrue over this period.

What to prepare before you apply for a PPP loan

As a sole proprietor or independent contractor, you’ll need to submit these documents to verify your information.

Sole Proprietorship, Independent Contractor, Self-employed, Single member LLC required documents

If you have employees

Provide the following documents

If you do not have employees

All businesses of this type should provide the following
  • Color copy of government issued ID (front and back)
  • 2019 1040 Schedule C
  • Substantiation of self employment
  • 2020 invoice, bank statement or book of record to establish you were operating effective 2/15/2020
If you have received or been approved for an EIDL loan

Things to note:

  • For the fastest review, please submit your files as PDFs.
  • We can’t accept Form 1040 Schedule C from previous years, so be sure to submit a completed version of the 2019 form (even if you haven’t filed it).
  • Submitting 1099s does not suffice; we still need to review Form 1040 Schedule C.
  • Contractors are not considered employees in your payroll calculations.
  • If you issue 1099s to contracted employees, they will need to apply for their own PPP loans.
  • If line 31 on Form 1040 Schedule C is less than $2,400, your business isn’t eligible for a PPP loan.

What to expect from the application process

  • 1

    Online Application.

    You'll share info about yourself, any additional business owners and your business, including payroll filings and certifications necessary for eligibility. You can preview the questions here

  • 2

    Documents verified.

    We'll make sure you have all the right documents to verify your information. If we need anything else from you, you'll be notified by email and submitted.

  • 3

    Application review.

    Once we have all the right documents, we'll review the information you've submitted.

  • 4

    Submitted to the SBA.

    When your application is ready and we've calculated your estimated loan amount, we'll submit your information to the SBA.

  • 5

    SBA response.

    We'll let you know if the SBA approved or declined your PPP loan application.

  • 6

    PPP loan issued.

    If you're approved, you'll be asked to sign loan documents, and your funds will be deposited into the bank account you securely connected during the application.

FAQs

  • Is my business eligible? Sole proprietors, independent contractors and self-employed individuals who regularly carry on any trade or business, including those in the “gig economy" are eligible if your business was operational as of February 15, 2020. Click here to see if your business is not eligible because of SBA requirements and/or Kabbage restrictions.
  • Am I eligible if I started my business in 2020? We are awaiting guidance from the SBA regarding sole proprietors / single LLCs who were not in operation in 2019 but who were in operation on February 15, 2020. If you have additional W-2 payroll employees, you can apply for a PPP loan, and you’ll need to upload your 2020 payroll documents for January and February of 2020.
  • I haven’t filled out a 2019 Form 1040 Schedule C. Do I still need to submit it? Yes. We understand taxes are not due yet, but we need a prepared version of the document to verify your net earnings. Download the form, fill it out and submit it.
  • If I only use Form MISC-1099, do I still need to submit a 2019 Form 1040 Schedule C? Yes. Even if you use Form MISC-1099 to report earnings, you still need to download the 2019 Form 1040 Schedule C, fill it out and submit it as part of your PPP application.
  • Can I count 1099 employees toward my payroll calculation? No, 1099 employees do not count towards payroll for the purposes of PPP. If you have 1099 contractors, let them know that they can also apply for a PPP loan as a sole proprietor / independent contractor.
  • What if I use Form 1120-S instead of a W-3 and have no W-2 employees other than myself? If you don’t use a W-3, submit your 2019 W-2 for your self-employment wages.

Are you an Uber driver?

Kabbage makes it easy for drivers and delivery people who use the Uber platform to apply online for SBA Paycheck Protection Program loans. Learn more about what you need to apply and what you can expect.

Learn more about the PPP

Review more FAQs for details about applying and using funds.

Review FAQs

Be aware of potential scams

We want to make sure you and your business are protected and get the critical funding you need during this crisis. Review our FAQs for signs of potential SBA fraud, which you can report online or through the Office of Inspector General's hotline at 800-767-0385.