Pandemic Relief for Consumer Businesses
Even if your business did not have a revenue reduction or was deemed essential…. You can still qualify for ERC!
Consumer businesses with more than five employees during the pandemic are receiving checks up to $20,000,000 as part of a new government stimulus program.
The program offers entrepreneurs up to $26,000 per employee for retaining people during Covid-19 — even if they didn’t see a decline in revenue and even if they already received a PPP loan.
Most businesses experienced a Covid-19 event. If you averaged more than five (5) W2 employees in 2020 and /or 2021 and experienced even one of the Covid-19 examples below (or a similar event) during a quarter in 2020 or 2021, your business qualifies for that quarter.
Over a three-year period, the federal government has set aside $250 billion for this program. Think about that number. That’s a 1/4 of a trillion dollars for small businesses for the ERC Program (Employee Retention Credit).
How is this possible? So when Donald Trump was president, he said ERC or PPP during his administration, and almost every small business we have worked with or talked to took the PPP loan. Most business owners that took the PPP loan have since gotten their loans forgiven, which was great, but nobody talked about ERC. It was common knowledge; that once you took the PPP money, you were not entitled to the ERC money. Well fast forward to this administration; President Joe Biden. He changed the rules, took the word OR, and turned it into an AND. So today, even if you took the PPP money. You are now entitled to get the ERC grant. So we’re going back to all these small businesses, and we’re helping them, on average, get anywhere from $10,000 to $26,000 per W2 employee.
So let’s say you had a restaurant that had 200 employees. Our partner could potentially help you get checks in the mail from the IRS for $2M for 200 people. An average of about $10,000 per person. What’s incredible about the ERC program is that there are no restrictions on how to spend it and there is no payback because it’s not a loan. So at the end o the day, it is a payroll tax credit program for having W2 employees, for whom you paid payroll taxes and for doing the right thing during the pandemic and kept paying your employees. You kept your workforce working.
The key here is that in 2019 you had a business with less than 500 employees. As an example, we have a client that owned a couple of car washes and had over 750 people on the payroll. But when we looked at the staff, we found that about 300 were part-time employees. Our partner was able to secure over $7M for them.
In the past 16 months, our funding partner has become the 2nd largest provider of ERC grants in our nation. They have worked with over 12 thousand small businesses and have already delivered about 2B to businesses. There are a little over 2 years to go with the program and they are on pace to hit 10B in grant money to businesses.
We’re helping the small businesses negatively impacted by covid who really need this money. Let us help make the introduction and learn more about this program.
Even if your business did not have a revenue reduction or was deemed essential…. You can still qualify for ERC!
SBA announced they will only accept PPP loan applications from businesses with fewer than 20 employees. If your business has under 20 employees, you may qualify to be prioritized for a PPP loan through March 10, 2021.
The impact of Covid-19 on small business and small business owners is real. Many business owners are currently seeking creative ways to stay afloat amid this pandemic.
With live events shut down, many of the companies we work with are experiencing a complete loss of income.