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PAYCHECK PROTECTION PROGRAM (PPP) - Upwork Qualify?

e929f0d8
Active Member
Rick F Member Since: Apr 1, 2020
1 of 18

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.

b2fc866a
Active Member
Peter A Member Since: Apr 1, 2020
2 of 18

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?

e929f0d8
Active Member
Rick F Member Since: Apr 1, 2020
3 of 18

And.. they are often international.  I think Upwork should take some action here to get special approval.  Would help you (Upwork) more than us (small businesses).

 

Thanks!

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
4 of 18

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-programs/loans/paycheck-protection-program-ppp

~ Valeria
Upwork
oneslocar
Active Member
Jesse F Member Since: Aug 13, 2015
5 of 18

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? 

murphytechserv
Active Member
Joseph Randy M Member Since: Feb 26, 2019
6 of 18

So, is it confirmed that a 1099 is required when submitting the app to the financial institution? Or, as Upwork States above, will Upwork's stance be enough? 

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
7 of 18

Hi Jesse, 

 

General information about when 1099-K form is sent to freelancers is available here. We'll also have one of our agents reach out to your directly to assist you with further questions. 

~ Valeria
Upwork
oneslocar
Active Member
Jesse F Member Since: Aug 13, 2015
8 of 18

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.

d44188ea
Active Member
Vasilisa K Member Since: Apr 2, 2020
9 of 18

Hi Valeria, 

 

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, 

Vasilisa 

aocumen
Moderator
Avery O Moderator Member Since: Nov 23, 2015
10 of 18

Hi Vasilisa, 


Let me go ahead and check on this and I'll come back here once I have more information. 


~ Avery
Upwork
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