- Employee Retention Credit (ERC) Overview – The CARES Act provides government grants (not loans) for small businesses that retained employees during 2020 and 2021.
- Qualification Requirements – Businesses may qualify if they experienced full or partial shutdowns due to government orders or saw a significant decline in revenue.
- Additional Funding Opportunities – Even businesses that previously received a PPP loan may still be eligible for ERC funds, which do not have to be repaid.
CALLING ALL SMALL-BUSINESS OWNERS!!!
Did you qualify for the PPP loan? More money may be available!
The Covid-19 pandemic was undoubtedly a time of fear and chaos for small business owners. As restrictions were established, chaos and fear continued to grow across the country in all business sectors. Maintaining employees became increasingly difficult and unfortunately, many businesses shuttered their doors. For business owners who retained employees during 2020 and 2021, the Employee Retention Credit (ERC) program may help. The CARES Act aims to aid business owners who maintained employees during any calendar quarter of 2020 to receive an employee credit in the form of Government Grants.
“Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make” (IRS, 2022). To add, “if the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS” (IRS, 2022).Qualified business owners will NOT have to pay back the credit! If you received the PPP loan, you are likely to qualify for the ERC program.
Qualified business owners will NOT have to pay back the credit! If you received the PPP loan, you are likely to qualify for the ERC program.
QUALIFICATIONS
To qualify, you must have been operational during the pandemic years of 2020 - 2021 and you experienced the following:
(1) Full or partial suspension of operations of trade / business during any calendar quarter because of government order limits
(2) A significant decline in gross receipts
Additional information regarding qualifications and the ERC program can be found on the IRS website: https://www.irs.gov/coronavirus/employee-retention-credit
Line of Credit Depot makes it easy for business owners to determine they qualify. If you believe you qualify or are unsure, head over to our quick, 5- minute application: CARES Act Employee Retention Credit.
We have spent nearly a decade helping small business owners receive access to working capital. It is our honor to now help those who helped others during the global pandemic by providing access and quality resources to the ERC program. Please apply and spread the word to other small business owners across all industries!
