erc business solutions

Stuck in the ERC Limbo: Small Businesses Face Funding Gap While Waiting for Credits

ByTodd Rowe
erc business solutions

The Employee Retention Credit (ERC) program, a valuable lifeline thrown to businesses during the pandemic, has unfortunately become entangled in a web of fraudulent claims that’s why SMB needs ERC business solutions. As a result, the IRS implemented a moratorium or IRS paused ERC processing of new applications in September 2023, leaving many legitimate businesses high and dry. This has created a frustrating situation for small businesses that desperately require the funds they rightfully earned, but are now stuck waiting with no clear end in sight.

“BitX Capital, under my leadership as President and CEO, is committed to being the beacon of support for small businesses navigating the challenges of waiting for their ERC tax credit or ERC refund. With a decade of experience, we understand the needs of the small business community and are the ERC pros. BitX is not just a lender; we are a trusted partner that connects businesses with the right lender and the right loan. Our track record speaks for itself, and we take pride in being the go-to source for funding, bridging the ERC funding gap, and earning the trust of a community of raving fans we are the ERC Pros. At BitX, we are the authority when it comes to finding the perfect financial solution for your business.” – Todd Rowe, President, and CEO of BitX Capital

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What is the ERC Program:

The ERC tax credit 2024 program, introduced in the American Rescue Plan Act of 2021, was designed to incentivize businesses to retain employees during the COVID-19 pandemic. Eligible businesses could claim a refundable tax credit against qualified wages paid to employees. However, widespread abuse and fraudulent claims prompted the IRS to hit the brakes on new applications, leaving many honest businesses caught in the crossfire.

What are ERC Qualifications:

The Employee Retention Credit (ERC) qualifications are determined by specific criteria set forth by the U.S. government. To be eligible, businesses must have experienced either a significant decline in gross receipts, generally defined as a 50% or more reduction in quarterly revenue compared to the same quarter in the previous year. Businesses must also have faced government-mandated shutdowns due to COVID-19. Additionally, for wages to qualify, they must be paid to employees during periods when the business is either fully or partially suspended or experiencing a significant decline in gross receipts. The ERC is available to a wide range of businesses, including those of varying sizes and structures, and it serves as a valuable financial incentive to retain employees during challenging economic conditions. It is important for businesses to carefully review and understand the specific eligibility criteria to ensure compliance and maximize the benefits of this tax credit.

The Impact on Small Businesses:

For many small businesses, the ERC program was a crucial source of financial support. The funds helped them cover payroll expenses, maintain operations, and navigate the economic challenges of the pandemic. Now, with the moratorium in place, these businesses are facing a significant cash flow gap, putting their very survival at risk.

The Wait Continues:

As of today, February 12, 2024, the moratorium on new ERC applications remains in effect. The IRS is currently working on implementing stricter fraud prevention measures before resuming processing. Unfortunately, there’s no concrete timeline for when this will happen, leaving many businesses in limbo.

Bridging the Gap: ERC Loans as a Solution:

While waiting for the IRS to resolve the situation, small businesses can consider alternative solutions to bridge the financial gap created by the lack of ERC funds. One option is an ERC loan, a type of bridge loan specifically designed to help businesses cover the anticipated ERC credit they are waiting to receive.

Why Choose BitX Capital for Your ERC Gap Loan:

When it comes to ERC business solutions, BitX Capital stands out as a trusted and reliable partner for small businesses. Here’s why:

  • 10 Years of Experience: We have a proven track record of connecting businesses with the right funding solutions, exceeding expectations for over a decade.
  • Unmatched Expertise: Our team of experts is well-versed in the ERC program and understands the unique challenges faced by small businesses.
  • Vast Lender Network: We partner with a diverse network of lenders, ensuring you get the best loan terms and rates for your specific needs.
  • Personalized Guidance: We take the time to understand your situation and guide you through every step of the loan application process.
  • Positive Reviews: Our clients consistently rave about our professionalism, responsiveness, and commitment to their success.

Key Benefits of ERC Gap Loans:

  • Fast Funding: Get the money you require quickly and easily, typically within days of approval.
  • Flexible Terms: Choose loan terms that fit your budget and repayment capabilities.
  • Focus on Growth: Use the funds to cover payroll, invest in your business, and move forward with confidence.
  • Peace of Mind: Bridge the financial gap and avoid the stress and uncertainty of waiting for your ERC funds.

Taking Action:

If you’re a small business impacted by the ERC moratorium, didn’t get your ERC refund, and require immediate financial support, consider ERC business solutions from BitX Capital. Contact us today for a free consultation and let us help you navigate this challenging situation.

Additional Resources:

Take the first step towards securing your business’s financial future. Call your dedicated BitX Capital loan specialist now at 203-763-1430, ext. 101 to discuss how we can help bridge the ERC funding gap. Our team is ready to guide you through the process and tailor a solution that fits your business needs. Don’t wait – empower your business today!

Remember: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor to discuss your specific needs and circumstances.

Disclaimer: This blog post is intended to provide information and resources for small businesses seeking ERC loans. Please do your own research and due diligence before making any financial decisions.

Note: This blog post provides a general overview of the ERC program and the challenges faced by small businesses.