As the COVID-19 pandemic continues to wreak havoc on the economy, many small business owners are turning to the Economic Injury Disaster Loan (EIDL) program offered by the Small Business Administration (SBA) for financial assistance. However, confusion still exists regarding whether independent contractors count as employees for EIDL purposes.

The short answer is that independent contractors are not considered employees for EIDL purposes. This means that businesses who have independent contractors working for them cannot include these contractors in their employee count when applying for an EIDL loan.

It is important to note that independent contractors can still apply for their own EIDL loan using their personal Social Security number, as long as they meet the eligibility requirements set by the SBA. This includes having suffered economic injury due to COVID-19 and having a credit score that meets the SBA`s minimum requirement.

It is also worth mentioning that businesses who have a mix of employees and independent contractors may still qualify for an EIDL loan based on their overall employee count. However, only the employees will be included in the count, not the independent contractors.

It is crucial for businesses to accurately determine their employee count when applying for an EIDL loan, as this will directly impact the amount of funding they are eligible to receive. The SBA has set guidelines for determining employee count, which includes all individuals who receive a W-2 form from the business at the end of the year.

In summary, independent contractors do not count as employees for EIDL purposes. Businesses with independent contractors can still apply for an EIDL loan, but these contractors cannot be included in the employee count. It is important for businesses to accurately determine their employee count to ensure they receive the maximum amount of funding available.