Our partner will not only submit the paperwork for the credits, but he will also advance money on the credit filings. The government is backlogged on processing these claims. So, why not consider an advancement on those credits.
The first step is to ascertain whether a company is eligible for the Program. The information as described below should give our partner the needed information. You have (2) options. The first is submitting the paperwork that you, as an Agent to our partner for analysis. The second option is having the company submit all their paperwork to our partner for analysis, and the possibility of advanced funding.
Additional is as follows:
The commission is usually between 10bpts - 40bpts of the total credit amount and see below general information:
• Funding minimum is $250k (can fund up to $1mm for each claim)
• Advance rate limited to the lesser of 90% or $1mm (max funding amount)
• Financing charges are flat 10%, collected from proceeds of the advance
• The credit validation fee ranges, starts at 3.5% of the credit amount for previously filed claims
• Non-starters:
o Any past bankruptcy
o Legal issues (pending suits, judgments, tax liens)
o Numerous UCC filings from secured creditors (reviewing these on a case-by-case basis)
• Prequalification Application (please complete as many fields as possible and return in excel format)
• If the candidate is owned by five (5) or fewer of the same individuals that also control other business(s), please have them complete Tab 2 (Aggregation).
• Please provide proof of filing (if already filed) including any supporting documentation
• Please provide a debt schedule or schedule of liabilities
The qualifications for ERC can be confusing however we have partnered with a group of CPAs who are experts in this specialty area. Additionally, we have legal support if the company’s fact pattern calls for a tax opinion or further information for a complicated request. Here are some of the general parameters:
• There must be a decline in revenue of 50% or greater from any quarter in 2019 to any comparative quarter in 2020 (e.g., Q1 of 2020 would need to be lower than Q1 of 2019 by 50% or more),
• There must be a decline in revenue of 20% or greater from any quarter in 2019 to any comparative quarter in 2021 (e.g., Q1 of 2021 would need to be lower than Q1 of 2019 by 20% or more), or
• The business must have experienced a full or partial suspension of business operations, which may include restrictions such as social distancing, enhanced hygiene procedures, or changes/restrictions to their format of service.
You can qualify under any of the categories above. Additionally, there are size limits depending on the year which look to 2019 average monthly FTE headcount:
• Maximum headcount for 2020 is 100 employees
• Maximum headcount for 2021 is 500 employees
There are some limitations with PPP. However, in most cases, eligible employers are only minimally limited due to their PPP. Our CPA partnership will carefully analyze and guide the PPP/ERC rules to ensure the ERC claims is maximized within the PPP covered period(s).
The credits available depend on the year:
• $5,000 per employee per year in 2020
• $7,000 per employee per quarter in 2021 (up to $21,000 per year, based on current rules)
If you are interested, just send me an email to
president@fundingsourcesforbusiness.com. I do not check the Daily Funder on regular basis.