Billions of dollars in COVID-19 relief remains for small businesses
CHARLESTON, S.C. (WCSC) - For some small-business owners, there could be up to $26,000 per employee left over from federal COVID-19 relief programs.
That money comes from ERC funds which are Employee Retention Credits that Congress passed under the CARES Act at the beginning of the pandemic.
Accounting experts with Omega Accounting Solutions say businesses were forced to pick between Paycheck Protection Program Loans and ERC funds to help stay afloat and keep workers employed. Just last year, Congress allowed businesses to take advantage of both, which is why some business owners might not know they have the opportunity to do so.
“Eligible small businesses can claim up to $26,000 per employee [using ERC funds], so it’s a very substantial and impactful credit opportunity,” says Jay Woods, Founder & CEO of Omega Accounting Solutions.
Woods says businesses had to “pick a path” originally, but now that businesses can use both, there’s a wide range of who is eligible.
“If your revenue was impacted by COVID-19 government shutdown orders and restrictions, you could potentially qualify,” Woods says. “If it wasn’t but your business was nominally affected, whether that was supply chain or social distancing, if your business was impacted in more than a 10% way, you could also qualify for the credit.”
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