Yes. A hairstylist may be eligible to apply for PPP loans. The second round of PPP-approved financial support provides freelancers, 1099 workers, salon owners, booth renters, salon suite owners and renters, and sole proprietors with 100 percent forgivable borrowings.

It is accessible to self-employed persons who meet specific criteria. According to the SBA, sole traders, independent contractors, and self-employed individuals may be able to qualify for both the first and second-draw loans. Small businesses that satisfy the SBA’s size standards, either the industry size standard or the alternative size standard, are also eligible.

When you own a salon or barbershop with far less than 20 employees, you can apply for a PPP loan all through the two-week small business exclusivity period, which mostly runs from February 24th to March 9th. Following the close of this window, all qualified companies will be able to apply for the program.

Different Ways Hair Stylists Can Qualify for PPP Loans

It is important to note that there are three common employment setups for service providers, and it can be very confusing to note or describe how each of these setups qualifies for PPP loans. Here are the three most common setups and what they require to qualify for funding:

  1. If You Are Self-Employed and Do Not Have Employees (Hair Stylist)

You are not required to have a precise business structure to meet the criteria for PPP loans as a self-employed hairstylist. You may meet the criteria as long as you document your business income to the IRS. You are not also required to have filed your most recent tax return.

Experts say you can meet the criteria depending on your net profit for 2019 or 2020, or gross income for loans approved after March 3, 2021.

Furthermore, while you are not required to submit your 2020 tax return, you should complete your Schedule C as accurately as you can. Furthermore, if you do not officially pay yourself payroll, you should first report your business income to the IRS, which will help figure out the amount of your loan.

  1. If You’re a Small Business Owner with Employees (Hair Salon Owner)

If you already have W-2 employees, you might be eligible if your monthly payroll is 2.5 times their average. You can include your remuneration in your estimation, either as a wage bill or, if you do not reimburse yourself formal payroll, as Schedule C net profit or gross income. Remember that anybody you pay on a 1099 basis doesn’t really qualify toward your payroll and can apply independently.

  1. If You Are In Business With A Partner (Co-Owning A Salon With Another Service Provider)

Most often, your qualification will be determined by your business structure. However, if you submit your tax returns as a partnership, each partner does not apply on their own; rather, they apply as a group.

PPP Hair Stylist Eligibility Requirements

Beauty experts, like any other small business owner, are able to qualify for a First Draw PPP loan if they are one of the following:

  • If they are sole traders, contractors, and self-employed individuals
  • Any small business that fulfills the SBA’s size requirements (either the industry size standard or the alternative size standard)
  • Any company, 501(3) non-profit organization, 501(19) veterans organization, or tribal business concern (section 31(b) (2)(C) of the Small Business Act) with 500 or more workers, or that fulfills the SBA industry size standard if more than 500 workers.
  • Any company with more than one physical location and fewer than 500 employees that is assigned a NAICS code beginning with 72 (Accommodations and Food Services).

If your salon or spa has up until recently obtained a First Draw PPP loan, it may be able to qualify for a Second Draw if it meets the following criteria:

  • Earlier obtained a First Draw PPP loan and will or have utilized the entire amount only for approved uses
  • Has fewer than 300 employees
  • Can show a 25% decrease in gross receipts between comparable quarters in 2019 and 2020.

How to Apply for PPP Loan as a Hair Stylist

Hair care professionals can apply for PPP funds via the SBA website. After completing a short questionnaire, the SBA aligns candidates with prospective lenders to discuss percentages, conditions, service charges, and other important information. Throughout this time, lenders will interact with hairstylists via email.


A hairstylist might be eligible for PPP loans. However, you must first seek advice from your accountant or a tax professional. You should also go over all the Department of Treasury’s materials on the CARES Act and small business loans.

After that, try and send your application at least a week prior to the deadline to ensure that the finance company will have time to prepare it for SBA approval.