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Best ERC/ERTC Companies

The Employee Retention Credit (ERC or ERTC), is a federal program aimed at assisting small and medium sized businesses in recovering from the financial repercussions of COVID-19. The IRS is offering qualified businesses the opportunity to claim their owed refunds without the need for repayment.

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Overview

Biz2Credit Inc. launched in 2007, backed by Nexus Venture Partners, has since arranged over $7 billion in small business funding across all 50 states. Biz2Credit provides funding through a wholly owned lending subsidiary Itria Ventures LLC. They are committed to being there for their over 225,000 clients and try their best to tend to the needs of businesses and entrepreneurs by providing a variety of business related funding.

Pros

pros iconFunding available within 24 hours.

pros iconVariety of financing options available.

pros iconSupports businesses with potential and robust revenues.

Cons

cons iconMay be an expensive option due to fees.

cons iconEvery state may not have the same financing options.

cons iconNo live chat option on their website.

  • check mark Funding as soon as 72 hours
  • check mark Flexible interest-only payments
  • check mark Dedicated funding specialists
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Overview

Founded in 2011, Lendio provides a platform for business financing in which they match borrowers with their large network of over 75 high-quality leading lenders, including big names like American Express, Bank of America, Kabbage, and LendingClub.

With a wide range of loan types, such as a business line of credit loan, SBA loan, startup loan, equipment financing, and more, Lendio simplifies the loan application process by allowing borrowers to apply for free in just 15 minutes and without any impact to your credit score.

From there, your business will be matched with financing options from multiple lenders. An expert will get in touch with you to help find the best option for your business’s needs.

Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • check mark Flexible loan terms and amounts
  • check mark Get approved in minutes and funded in 24 hours
  • check mark Transparent about its fees and terms
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Overview

Founded in 2022, Accelerate Tax is a new company that focuses on helping small to medium-sized businesses get the most out of their employee retention credit tax refund. Although the company itself is new, its employees have decades’ worth of combined experience in finance, accounting, and taxes.

With Accelerate Tax, businesses could receive their employee retention credit (ERC or ERTC) in as little as five business days. This is not a loan, but rather a refund. It’s also the only service the company provides at this time, meaning its team is dedicated to helping businesses get the money they’re owed and maximizing their refund.

Pros

pros iconIf your business is eligible for the advance payment option, you could receive your tax refund within five business days

pros iconNo upfront or hidden fees

pros iconTeam of qualified experts with decades of combined experience

pros iconBusinesses could receive 15% to 25% more than with competitors

Cons

cons iconFee structure isn’t clearly outlined without speaking with someone

cons iconNo terms or service or privacy policy page

cons iconLimited time in business

  • check mark Get Help Claiming The ERC
  • check mark Dedicated to helping businesses get their ERC refund
  • check mark Team of tax and finance professionals

Top ERC/ERTC Providers

Biz2Credit

Flexible Terms & Quick Funding

575

Min Credit Score

Min 7.99%

APR. Fixed Rate

$25K-$6M

Loan Amount

12-36 months

Repayment terms

N/A

Soft Credit Pull

Marketplace

Lender Type

$250-$400 underwriting fees

Other Fees

Yes, undisclosed

Origination Fee

N/A

Prepayment Fee

72 Hours

Funding Time

$10K

Annual Revenue

24+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Funding available within 24 hours.
  • con-icon Variety of financing options available.
  • con-icon Supports businesses with potential and robust revenues.
  • con-icon May be an expensive option due to fees.
  • con-icon Every state may not have the same financing options.
  • con-icon No live chat option on their website.

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Working Capital Loans
  • Equipment Financing
  • Short-Term Business Loan
  • Merchant Cash Advances
  • Commercial Real Estate Loans
lendio_logo
Lendio

Buying, Building, or Renovating Your Business

500

Min Credit Score

Min 6%

APR. Fixed Rate

$1K-$5M

Loan Amount

1-30

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

$96K

Annual Revenue

6+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Flexible on credit score. Getting approved is based more on strong balances and revenue.
  • con-icon Variety of loan types available
  • con-icon Soft credit check for the initial application
  • con-icon Save time with offers from multiple lenders
  • con-icon Application process is a bit long for a marketplace because it requires 3 bank statements
  • con-icon Since Lendio is not a direct lender, the terms only become clear after applying for a loan

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Startup Loans

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

New

Time in Business

Pros & Cons

drop-down-btn
  • con-icon If your business is eligible for the advance payment option, you could receive your tax refund within five business days
  • con-icon No upfront or hidden fees
  • con-icon Team of qualified experts with decades of combined experience
  • con-icon Businesses could receive 15% to 25% more than with competitors
  • con-icon Fee structure isn’t clearly outlined without speaking with someone
  • con-icon No terms or service or privacy policy page
  • con-icon Limited time in business

What is The Employee Retention Credit (ERC)?

The Employee Retention Credit (ERC, or ERTC, T stands for tax) is a stimulus program in the form of tax credit that was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The payroll tax refund initiative was designed as a way to help businesses keep their employees on the payroll during the COVID-19 pandemic.

The ERC is separate from the Paycheck Protection Program (PPP), which is a loan program that provides SMBs with funding to cover payroll and other expenses.

The ERC is a refundable tax credit, meaning businesses can claim it even if they don't owe any taxes. It is a grant, not a loan, and does not need to be repaid. 

The ERC is available to businesses of all sizes, including sole proprietorships, partnerships, corporations, and nonprofits. While the ERTC officially concluded on October 1, 2021, businesses can still pursue a retroactive ERTC refund by filing Form 941-X.

Is My Business Eligible for The ERC?

To be eligible for the ERC, businesses must meet the following criteria:

  • They must have been in operation on February 15, 2020.
  • They must have had a significant decline in gross receipts during 2020 or the first three quarters of 2021.
  • They must have kept their employees on the payroll during the period of the decline in gross receipts.

Whose eligibility is determined when considering employees?

Companies with 100 or fewer full-time employees are eligible for the program, considering all of their employees, regardless of their active service during the designated period. In contrast, for companies with over 100 employees, only full-time employees who are being compensated but unable to provide service due to shutdowns and/or a decline in gross receipts are taken into account for eligibility purposes.

Top ERC Providers

Biz2Credit
  • Funding as soon as 72 hours
  • Flexible interest-only payments
Apply now
lendio_logo
Lendio
  • Flexible loan terms and amounts
  • Get approved in minutes and funded in 24 hours
Apply now
Accelerate Tax Logo
Accelerate Tax
  • Get Help Claiming The ERC
  • Dedicated to helping businesses get their ERC refund
Apply now

How Much Money Can I Get Back Through The ERC Program?

The amount of the ERC is based on the number of employees that a business kept on the payroll and the amount of wages that it paid to those employees. The refundable credit amount can reach up to $5,000 per employee for 2020 and $28,000 per employee for 2021, totaling $33,000. This significant amount can be claimed either independently or with the assistance of a specialized company.

How Do I Claim The ERC?

To claim the ERC, businesses must file Form 941/941-x with the IRS. This form outlines the federal tax income and other payroll taxes withheld each quarter. For eligible quarters in 2020 and 2021, each Form 941 consists of three pages. Form 941-X is utilized for correcting errors on a previously filed Form 941.

The amended return must include the following information:

  • The amount of the ERC that the business is claiming.
  • The number of employees that the business kept on the payroll during the time for which its claimed.
  • The amount of wages that the business paid to those employees.

The following additional documents should also be included:

  1. Detailed Payroll Reports: including a comprehensive list of employees' names, payment dates, and gross wages.
  2. PPP Loan Application and Forgiveness: if you have obtained a PPP loan or gone through the forgiveness process, you will likely need the information used during the loan application.
  3. Basic Information about your Business: This should include pertinent details such as a description of your business, business and employee locations, and employee work hours (including any instances of reduced schedules).

Businesses can also claim the ERC on their original Form 941 if they meet the following criteria:

  • They filed their Form 941-x by the due date (December 31, 2023).
  • They have not yet received a refund for the first quarter of 2020.

For more in-depth information, see this official instructions document regarding form 941-x published by the IRS.

Should I Hire a Company to Help Me Claim the ERC?

Navigating the intricacies of the ERC tax code remains a challenge. The number of eligibility requirements and the process of calculating and filing a claim can be complex to many. Additionally, the ERC is a tax credit, so businesses must file a claim with the IRS. Many eligible businesses still fail to take advantage of this beneficial program. If you are not familiar with the ERC or the tax code, you may want to consider hiring a company to help you. 

You are welcome to compare ERC companies in the list above, and let ERC tax experts help you through the process.

Here are some reasons why you might want to consider hiring a company to help you claim the ERC:

  • The ERC has a number of eligibility requirements. Determining if your business is eligible for the ERC can be difficult. A company specializing in ERC can help you determine if your business is eligible and if you qualify for the maximum amount of credit.
  • Calculating the ERC can be complex. The amount of the ERC that you are eligible for is based on the number of employees you kept on the payroll and the amount of wages you paid to those employees. A company that specializes in ERC can help you calculate the amount of credit that you are eligible for.
  • Filing the ERC claim can be time-consuming. The ERC is a tax credit, so you will need to file a claim with the IRS. A company specializing in ERC can help you file your claim and ensure it is processed correctly.

What are the deadlines for claiming the ERC?

There are two important dates to keep in mind:

  • The deadline for claiming the ERC for 2020 is December 31, 2023. 
  • The deadline for claiming the ERC for 2021 is March 15, 2024.

What are the benefits of the ERC?

The ERC provides a number of benefits to businesses, including:

  • It can help businesses recover from the expenses of keeping their employees on the payroll during the COVID-19 pandemic.
  • It can help businesses reduce their tax liability.
  • It can help businesses save money.

Conclusion

The ERC is a valuable tax credit that can be obtained by businesses that kept their employees on the payroll during the COVID-19 pandemic. Businesses that are eligible for the ERC can claim it by the end of 2023.

By following the tips above, businesses can ensure they are eligible for the ERC and claim it correctly.

Finally, the IRS has a website with more in-depth information about the ERC. The website can be found at https://www.irs.gov/coronavirus/employee-retention-credit