Hi, what is Upwork doing to try to make it so you qualify under the PPP in the category of "independent contractors"? If you can make it so you qualify universally so I don't need to validate each contractor (some of mine are international) that would be a huge win.
I am also wondering the same thing. Do Upwork freelancers count as "contractors" for the purposes of the PPP?
They receive a 1099 from Upwork, not from our company, so I'm not sure if it counts?
Hi Rick and Peter,
Upwork is committed to helping users in these troubling and uncertain times. Eligibility for loans under the Paycheck Protection Program are determined by the applicant's financial or lending institution. To the extent that payments to independent contractors are permitted payments under the loans, we note that clients that use Upwork still do pay their contractors (not Upwork), but pay through our escrow service.
If a 1099-Misc form is required, that would be in the name of the client, not Upwork (though 1099-Misc forms are generally not required because of the 1099-K program). It appears to us that independent contractors paid through Upwork are equally eligible as other independent contractors, and should they SBA reach out to us with respect to any individual loan application we would certainly explain that payments are made by the client to the freelancer.
More information on how to apply for a loan under the Paycheck Protection Program and eligibility can be found on the U.S. Small Business Administration website here: https://www.sba.gov/funding-
Thank you for the reply Upwork. I have found that I am able to submit 1099's to my bank in order to get our contractors covered - however I don't see where I can get that information in my account. The UpWork team is essential to us being in business, and in fact this could help us provide more work through this portal. Are there any ways to get the 1099 forms for our teams or equivilant so that we can submit to our financial instutions?
Valeria - thank you, much appreciated! We don't spend a ton, but around $40k a year, so that would be helpful through this.
To others - not confirmed yet, however reach out to your bank. The one I'm speaking with is allowing 1099 in the initial form, however we'll see if it goes through underwriting. You should reach out to your commercial lender at your bank to get more information as it seems to vary.
Thank you very much for some of the clarifications provided here. Can an agent also reach out to me to clarify some of the similar questions, or can you please post this information here?
Thank you very much,
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