Many companies continue to struggle due to inflation costs, finding qualified workers, impact of COVID, etc. While there are many government resources and grants available to companies, it seems those who need it the most either do not know about the programs, were given bad information or have been a target of fraud in the past and do not trust anyone.
For example, a program that expired on August 31, 2022, called the Small Business Workforce Recovery Grant Program provided financial assistance to Tarrant County small businesses whose workforces have been impacted by the COVID-19 pandemic. Grant amounts up to $27,500 for qualifying non-profits and for-profit businesses were issued on a first come basis for companies with fifty or fewer employees that were physically located and operating in Tarrant County since 1/1/2020.
While that program has ended, there is still opportunity for Companies to apply for the Employee Retention Credit (ERC). This government grant is available to companies with less than 500 w-2 employees and if eligible can provide a grant for up to $26,000 per employee. A small company with four employees (W-2), excluding family members may receive up to $104,000. This is a grant that does not need to be paid back or forgiven.
While there are several ways to qualify, the most common way is it your revenue declined by 20% or more in 2021 compared to 2019. However, there are other ways and I encourage everyone to meet with their CPA or financial advisor to determine if you qualify.
While this is a great program for all Companies, there has been a lot of confusion, misinformation and groups taking advantage of small companies and minority owned businesses. When the program originally came out, if you received a PPP loan (Payroll Protection Plan) you did not qualify, but now you can have both.
There is still time to apply for the ERC and if you would like additional information the team at Whitley Penn would be happy to help or you can click on the link at https://www.whitleypenn.com/erc/ or contact me at frank.iannelli@whitleypenn.com
