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Any CPAs? Paycheck Protection Program and "side hustles"
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Any CPAs? Paycheck Protection Program and "side hustles"


Apr 2, 2020, 9:17 PM

I have a friend who has a great job; in addition, he has a hobby band that plays occasional weekend gigs; he cuts 1099s to the members of his band. He thinks his "sole proprietorship" hobby band will make him PPP-eligible, along with his band members (since they would be counted as contractors).

Does that seem plausible? Seems wrong to me.... at least I'm sure the intent is not to replace lost extra income.

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He’s going to need to show detailed P&Ls and Balance


Apr 2, 2020, 9:22 PM

Sheets, along with payroll records to qualify. I don’t think 1099 contractors will get it done for him.

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"IDIOT POSTER OF THE MONTH SO FAR...GWP-- You have won IPM Award for your failure to completely comprehend a clear post & then choose to attack someone who points out your ignorance. While you are not yet in the same No Class Catagory as deRoberts, ClemTiger117 & Tigerdug23, you are getting closer to the Sewer Dwellers." - coachmac


His W-2/tax returns will


Apr 2, 2020, 9:45 PM

Have both 'gig's...his full-time job...and his 'band' on it. One return...one check...and no PPP check. Then again...we're talking about a computer program...programmed to gov't specifications...so...

I wouldn't try it...the paper trail isn't exactly discrete.

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The loan amount through PPA is payroll x’s 2.5


Apr 2, 2020, 9:58 PM

And you have to certify that the $ is for payroll, rent/mortgage interest of the business, utilities for the business or other with an explanation. I’m not a CPA or banker, but I don’t think 1099 contractors count as “payroll.”

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"IDIOT POSTER OF THE MONTH SO FAR...GWP-- You have won IPM Award for your failure to completely comprehend a clear post & then choose to attack someone who points out your ignorance. While you are not yet in the same No Class Catagory as deRoberts, ClemTiger117 & Tigerdug23, you are getting closer to the Sewer Dwellers." - coachmac


^correct answer^


Apr 2, 2020, 10:53 PM

I own a small company. We had to provide our financials with the loan application so we could show our actual payroll amount. All of our people are W2 employees, so I don't know if 1099 contractors count or not. But, even assuming they do count, he could loan up to 2.5X his monthly payroll. My guess is that it's not worth his time.

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Re: Any CPAs? Paycheck Protection Program and "side hustles"


Apr 2, 2020, 10:17 PM

Just finalized today that 1099ers cannot be counted in company payroll. However, they can ( and should) file for the PPP money themselves. They are eligible.
Note that this process is not easy and will require advice from others.

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Re: Any CPAs? Paycheck Protection Program and "side hustles"


Apr 2, 2020, 10:18 PM


I have a friend who has a great job; in addition, he has a hobby band that plays occasional weekend gigs; he cuts 1099s to the members of his band. He thinks his "sole proprietorship" hobby band will make him PPP-eligible, along with his band members (since they would be counted as contractors).

Does that seem plausible? Seems wrong to me.... at least I'm sure the intent is not to replace lost extra income.


Just finalized today that 1099ers cannot be counted in company payroll. However, they can ( and should) file for the PPP money themselves. They are eligible.
Note that this process is not easy and will require advice from others.

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Fed’s 1099 ruling is an odd one


Apr 3, 2020, 2:11 AM

We’re going to do our best to keep all our employees and onsite contractors busy. If we let go of the 1099s, then valuable work won’t be completed. Yet they are supposed to file PPP even if they may not be released?

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Has he looked into the $10k offered by the EIDL program?


Apr 3, 2020, 2:14 AM

That’s a better option for the band instead of PPP

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Re: Any CPAs? Paycheck Protection Program and "side hustles"


Apr 3, 2020, 8:32 AM

Just seems strange to me that someone who hasn't lost their primary source of income can be eligible to get a forgivable loan to replace lost money from a side job.

I guess it's going to be difficult for the government to discern between someone who drives for Uber on the weekends because it helps put food on the table vs. someone who does it to pay for an expensive hobby.

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Every business owner I know is applying for funds


Apr 3, 2020, 11:35 AM

Everybody is trying to get their hands on free government money whether they need it or not. Plenty of accountants and lawyers are applying for EIDL and/or PPP loans, but some of their businesses will only be marginally impacted. Other landlords that own houses through an LLC are also applying due to rent disruption. Even people with multiple LLCs, 1099 contractors or only side gigs that generate occasional income are applying.

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