Contractor Rules Limit Reach of Small Business Virus Loans (1)

The new Paycheck Protection Program that aims to help small businesses during the Covid-19 pandemic bars them from getting money to pay workers who are classified as independent contractors—a restriction that some attorneys and industry groups say could limit the relief effort’s effectiveness.

While lawmakers focus on new legislation to pump more money into the program, the prohibition on businesses getting funding for independent contractors could hit certain industries especially hard. That includes construction, trucking, and information technology companies, which frequently use independent contractors, plus hotel companies that subcontract for their housekeeping staff, said two attorneys who are advising small ...