The U.S. economy continues to take blows as it tries to pick itself back up out of the wake of COVID-19. From business closures to capacity cuts, those in the small-business space have witnessed a great deal of pain from pandemic-related restrictions. By John Mollica
The U.S. economy continues to take blows as it tries to pick itself back up out of the wake of COVID-19. From business closures to capacity cuts, those in the small-business space have witnessed a great deal of pain from pandemic-related restrictions. Fortunately, there was a great deal of stimulus given to small businesses to support them throughout the pandemic. A few of the most notable relief programs included:
- Economic Injury Disaster Loan (EIDL)
- Employee Retention Tax Credit (ERTC)
- Restaurant Revitalization Fund (RRF)
What relief is still available for small businesses?
The ERTC program is available for new applicants who meet the stated requirements. The EIDL program is accepting increase requests from existing EIDL holders. The EIDL expired for new applicants as of December 31, 2021. The RRF expired for new applications as of July 2, 2021.
The ERTC is a is a tax credit that may be received in cash in the form of a check from the IRS for up to $26,000 per W-2 employee the business has on staff. The amount of each credit depends on the level of economic impact felt from the pandemic for most applicants.
Applicants that opened AFTER February 15, 2021 can automatically qualify for a limited ERTC of up to $100,000, based on the number of W-2 employees and wages paid.
The EIDL is a federal relief loan program that provides for fixed-interest loans of up to $2 million per business, based on the level of economic impact to your business from the pandemic. The EIDL is closed to new applicants. Businesses who already received EIDLs can apply for increases.
If you or any of your franchisee clients need federal support funding, don’t wait. Time and funds are running out as millions of businesses rush to receive critical support. You and your clients can connect with us directly below.
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John Mollica is a Florida-born CPA practicing in Boca Raton. After becoming a CPA in January 2014 and practicing in Public Accounting for several years, John opened his practice focused on bringing world class tax-saving and wealth-building strategies to single- and multi-unit franchisees. As of today, John and his team have helped hundreds of franchisees start, grow and thrive across 50-plus brands.