A tax rebate is available for any small business that processed payroll in 2020 and 2021, according to the CARES Act in 2021. Iron Capital Equities, a NYC-based fintech company, sees that most businesses think that the EIDL and PPP were the only COVID Relief packages available. “During the PPP application process, small business owners had to choose between either the PPP or the ERC. As of March 2021, any business that had payroll in 2020 and 2021 can access this credit, even if they received the PPP,” says Matthew Elling, Founding Partner and COO at Iron Capital Equities.
The EIDL has been closed, as of May 16, 2021, so now business owners are scrambling to get the remaining funds. The ERC, is a tax credit that can be used as a rebate for your 2022 tax return or it can be requested in advance. Approved Candidates are seeing the checks from the IRS arrive anywhere from 6-7 months. The backlog is due to limited staff and tax season, as the agency is inundated with COVID relief work and general taxation processing.
For the PPP program, the money was guaranteed by the SBA, but issued by banks.
The EIDL was funded through SBA allocated money.
The ERC is a tax credit issued and processed by the IRS.
The media blackout regarding the ERC is due to the war in Ukraine and the looming global recession along with inflation. “Right now everything is basically word of mouth, business owners telling fellow business owners,” said Elling.
Iron Capital Equities, a NYC-based fintech company is processing hundreds of applications for the ERC after the word got out. Iron has dedicated additional resources to handle the demand. Any businesses with W2 employees are urged to apply now: www.lineofcreditdepot.com/erc/employee-retention-credit.