PPP Loan Application: Applying for and Receiving Forgiveness

Many drivers applied for and received Paycheck Protection Program (PPP) loans after we shared how to do so (below, from a previous article). However, now that PPP loans are all out, how can you apply for and receive forgiveness for your loans? Here’s how to apply for and receive forgiveness for your PPP loans.

Applying for PPP Loan Forgiveness

Time to apply for PPP loan forgiveness? Here’s a step by step video walking you through it: How Lyft & Uber Drivers Can Apply For PPP Loan Forgiveness!

Step by Step How to Apply for PPP Loan Forgiveness

Quick Summary: 

  • Check with your loan provider to ensure you’re getting the loan forgiven properly.
  • Don’t give up if you don’t get an answer right away; be vigilant about calling.
  • If you have questions on the application, reach out to someone who knows, like the SBA.

Attempts For Forgiveness

I used Womply to help me apply for my PPP loan, and I was loaned $5,155 for my first draw. I never got my second draw because the PPP funding ran out before I could.

As soon as I got the money in my account, I started looking into how to get it forgiven.

Because I used Womply to help me get the loan, I went to them to help me get it forgiven. Unfortunately, they were not any help.

Next, I went to Fountainhead, which was the lender who actually gave me the money. I was able to find a number, but never got to talk to a person. I also sent emails with no response back. But I remained vigilant.

Finally, after a few weeks of trying to call, I got someone on the phone who told me there was nothing in place for me to get my loan forgiven yet. Their reasoning was because enough time had not yet passed. They also informed me that in the middle of August 2021, I would receive more information on how to get it forgiven.

At the beginning of August, the Small Business Association (SBA) opened their own online portal to help small businesses like myself to apply quickly and easily. Even still, they said to check with your lender to make sure you’re going through the correct process.

A few days later, I got an email from Fountainhead with instructions on getting my loan forgiven.

Finally Able To Apply

Fountainhead’s PPP loan forgiveness application

Finally, I was able to apply, and honestly, it could not have been any simpler. Once I clicked on the link to go to the portal I simply signed up for an account.

Next it took me to a screen and I hit “Start New Forgiveness Request”. From there, you put in your loan information, answer some other questions about your loan, your business, and that’s it.

It honestly took me less than 10 minutes to get the whole thing filled out, once I had the answer to a few of their questions. There were two questions that I wasn’t 100% sure about how to answer, so I found a local SBA help number and called for some clarification.

Questions While Applying

The first concern was how many employees I have. The application asks “employees at the time of loan application” as well as “employees at the time of forgiveness request”.

As a sole proprietor, I have no employees, I wasn’t sure what to put there.

When I called the SBA, I was told that as a sole proprietor, I count as my one employee.

The second concern I had was “amount of loan spent on the payroll”. Again, as a sole proprietor, none of the money was spent on “payroll”. It would have been spent on the owner’s pay or something similar.

The SBA asked what I personally used the money for, so I explained that I paid myself with the money as if I was working. So, I divided the money by 8 weeks and “paid” myself each week for 8 weeks.

Since I paid myself that way, they told me to put that I used all of it for payroll.

Once I had the answer to those two questions, the rest was easy.

Submitting the Application

Once I submitted the application, it took only a few minutes for me to receive an email telling me that my application had been accepted and the loan would be completely forgiven.

About a week later, I got a notice from my lender letting me know the loan is forgiven.

For a long time, I was overwhelmed, concerned, and anxious about getting the loan forgiven. This was compounded by the fact that when I reached out to get answers, no one would help from Womply or Fountainhead.

When it was all said and done, the money wasn’t life-changing, but in a lot of ways, it was. It’s free money that I was able to spend on rent, utilities, groceries, just life in general. Money that allowed me to pay down debt, invest, and do a lot of little things I wouldn’t have been able to do otherwise during the start of the pandemic.

It may not have changed my life right away, but it gave me an amazing starting point to move forward.

Senior RSG contributor-at-large Jay Cradeur is back with new information about how gig workers (Uber, Lyft drivers, DoorDash and Instacart couriers and more) can qualify and apply for the Paycheck Protection Program (PPP) loan through Womply. Many readers have received money, thanks to their Womply application, so we thought it would be helpful to walk you through the whole process. It’s simple and fast!

Quick summary:

  • Who can qualify for PPP funding? Many of the rules have changed – in drivers’ and couriers’ favor!
  • Womply has simplified the process for drivers (and other gig workers)
  • How much can you qualify for? It depends, but you might be surprised by exactly how much you qualify for now

In this video, Jay Cradeur breaks down how you can apply for the Paycheck Protection Program (PPP) with Womply: PPP Loan Application: How Lyft and Uber Drivers Can Apply Step by Step

Do I Qualify to Apply for a PPP Loan Using Womply?

In general, yes, but here are the basic qualifications (note: gig workers fall under these qualifications):

  • Sole proprietor
  • gig workers
  • self-employed individuals
  • pretty much anyone who has 1099 income

As long as you were in operation on or before February 15, 2020 and reported taxable earnings/income for 2019 or 2020, you can likely apply for PPP assistance.

What about if you collected unemployment? According to Womply, “If you are self-employed or a 1099 then you likely cannot use your PPP funds to pay yourself and continue to collect unemployment—because the payment you make to yourself counts as income, which in most cases will disqualify you from continuing to receive unemployment.”.

Basically, you can’t get a PPP loan and unemployment at the same time.

Wondering how you can use your PPP loan money? Here’s what you can use your PPP loan on (note: most gig workers will use it on payroll!)

  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020; and
  • Covered operations expenditures such as software, cloud computing, and other human resources and accounting needs; and
  • Covered property damage costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance; and
  • Covered supplier costs

PPP Loan Application: Step by Step Process for Applying Using Womply

Step 1: Fill Out Basic Information for the Fast Lane Processing by Womply

Previously, drivers and other gig workers wouldn’t qualify for as much. Now, your PPP loan is based on revenue – which means many drivers and gig workers will qualify for a bigger loan!

PPP loans are not like other loans – it’s 100% forgivable as long as you use it for certain, specific needs. One of those needs? Payroll to pay yourself.

You’ll fill out basic information at the beginning.

You’ll also be a provided steps of what to expect, including what you’ll need to gather before applying for the loan. You will also need to connect your bank to Womply so they can deposit the loan!

In Jay’s case, the only document he needed for step 5 (tax docs) was the 2019 tax return Schedule C.

Step 2: Go Through a Series of Questions Related to Your Tax Documents

In order to qualify for the PPP loan, you will need your tax documents. The information from your tax return will help determine how much you qualify for.

This is where Womply has customized it for us (see below): you’ll choose what kind of gig worker you are here. If you drive for multiple platforms, choose the description that best describes the platform you drive for the most:

Step 3: How Much Do You Qualify For?

In Jay’s case, he actually qualified for two draws of the PPP loan:

Again, if you use your PPP loan to pay yourself for payroll, you will have it forgiven.

How long did it take Jay to fill out this application? About 30 minutes, because he needed to find his tax documents.

After you’ve completed all the steps, you will receive this congratulations message:

Make sure you get it – that means your application went through!

You will also receive an email confirmation:

Key Takeaways for Applying Through Womply

The process is very simple – and there is significant money that drivers can get for payroll! Also, Womply makes it very easy for you to apply.

In Jay’s case, he did hear from Womply, and they needed to confirm some more information, but again, the whole process was simple. He’s currently waiting to hear back about his application – we will update when he does!

Readers, have you taken a PPP loan? What questions do you have about the PPP loan process?

-Jay @ RSG