Does Your Business Qualify for the ERC Federal Assistance Program?

(StatePoint) The strength of the country relies on its estimated 33.2 million small businesses, which comprise 99.9 percent of all American businesses. COVID threatened, and in some cases forced, the closure of many small enterprises and tens of thousands are still reeling from the aftermath of the full pandemic.

In an effort to offer some relief, the federal government created the Employee Retention Credit (ERC) Program under the IRS that has already helped thousands of qualifying businesses receive up to $26,000 per employee. Unfortunately, not enough small business owners are aware of the program. Others don’t think they will qualify, leaving billions of dollars on the table that could help them recover and continue to move forward.

A small business can receive an ERC even if it received PPP. The program is flexible enough that most businesses will likely be eligible. The average claim is $150,000, but there is no cap on the amount.

Here are the basics to see if you qualify:

• Your business is based in the United States.

• You retained and paid W2 employees during 2020 and 2021.

• Your business was impacted by COVID restrictions in one or more of the following ways:

1. Loss of revenue

2. Supply chain disruptions

3. Full or partial shutdown of your business

Now a growing industry, ERC companies are popping up all over so be wary about who you work with. Ideally, try to work with a company you know, or at least one that understands the needs and inner workings of a small business. Often, it helps to work with a smaller sized ERC business that’s accessible and that will work with your submission on a oneon-one basis. Finally, to the degree you can determine it, try to work with a company that will process your application as quickly as possible while focusing on reducing errors that can delay the process.