Employee Retention Credit (ERC)
The Employee Retention Credit, now available to recipients of PPP loans, is a refundable federal payroll tax credit designed to encourage businesses to retain their full-time employees through COVID-19. The ERC applies to any private-sector business or tax-exempt organization that carries on a trade or business that was either:
a. Fully or partially suspended due to orders from the federal or state government limiting commerce, travel, or group meetings due to COVID-19 or,
b. Experienced a significant decline in gross receipts during any quarter compared to that same quarter in the prior year. Defined at a 50% decline in any quarter during 2020 and a 20% decline in 2021.
This valuable credit can provide up to $33,000 per employee!
Learn more about the ERC program on the Aprio ERC Website.
Provider Relief Fund (PRF)
The Provider Relief Fund is a $178 billion program administered by the Department of Health and Human Services (HHS). Funds are being distributed to healthcare providers including medical practitioners, dentists, durable medical equipment suppliers, pharmacies, etc. The funds are to prevent, prepare for, and respond to COVID-19. The funds can be used to cover certain increased expenses or lost revenues.
The PRF is a taxable grant that does not need to be repaid, if used in accordance with the Terms and Conditions. An additional $3 billion was earmarked for the program from the signing of the Consolidated Appropriations Act on December 27, 2020.
Recipients of these funds must comply the Terms and Conditions, including various reporting requirements. Learn more about the PRF program and associated reporting requirements on the Aprio PRF Website.
Restaurant Revitalization Fund (RRF)
On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law, which includes a much-anticipated program to support restaurants impacted by the pandemic: the Restaurant Revitalization Fund (RRF). The RRF, which will be administered by the U.S. Small Business Administration (SBA), provides for $28.6 billion in grants for eligible entities, $9.5 billion of which will be set aside for entities with 2019 gross receipts of $1,500,000 or less.
The RRF grant will be equal to the pandemic-related revenue loss of the eligible entity reduced by any Paycheck Protection Program (PPP) loans obtained in either 2020 or 2021. Generally, pandemic-related revenue loss means 2019 gross receipts less 2020 gross receipts. The ARPA provides additional provisions for an eligible entity that was not in operation for any or all of 2019.
The SBA stopped accepting RRF grant applications on May 24, 2021. Guidance on reporting requirements pertaining to the use of RRF grant is forthcoming.
Learn more about the RRF grant on the Aprio Retail, Franchise & Hospitality Website.
Shuttered Venue Operators Grant (SVOG)
The Shuttered Venue Operators Grant program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the SBA’s Office of Disaster Assistance. Eligible applicants may qualify for SVOG equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. An additional $1.25 billion was earmarked for the program from the signing of the American Rescue Plan Act on March 11, 2021. Click here to learn more about the SBA’s SVOG Program.
Economic Injury Disaster Loans (EIDL)
In response to the Coronavirus (COVID-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19. Click here to learn more about the SBA’s EIDL Program.