Everything You Need to Know About the ERTC Loan

The ERTC (Employee Retention Tax Credit) loan gives business owners waiting on an IRS credit payment access to more of their funds up front without the wait. This money can be used for a variety of needs, such as growing your business, freeing up operational cash flow, and more.

Understanding how to qualify for the ERTC loan, what the ERTC loan can do for you, and how to go through the application process will allow you to maximize your chances of receiving the benefits and giving your business a boost.

Values of an ERTC loan

You may be wondering what an ERTC loan can do for you. ERTC loans can help keep your business moving or expand, as you get access to money up front. Some other benefits include:

1. Growing your business.

With an ERTC loan, your business can expand faster. The extra working capital allows you to grow.

2. Access to up to 85% of ERTC upfront-no need to wait for 6, 12, 18 months.

Get access to your capital immediately, so you can start to grow sooner rather than later.

3. Funds for a broad range of business needs.
   1. The ERTC loan can help you with various business needs, like payroll, paying debts, covering outstanding invoices, starting new projects, allowing you to improve your business quickly and successfully
4. Free up operational cash flow.

With the extra capital you’re working with following an ERTC loan approval, you’re free to operate your business with more cash, more effectively.

5. Tax-deductible tax

No need to pay taxes on the amount of the ERTC loan.

What you need to know when applying for an ERTC loan

Applying for an ERTC loan doesn’t have to be a complicated process. As long as you know what you’re supposed to be prepared with, the process should go smoothly. Here’s what you need to know:

• The size of your expected ERTC loan is the amount of the loan you’re asking for. Knowing this number will help determine your eligibility.
• What you need the funds for is what you’re going to spend the money on. Anything from payroll to covering outstanding invoices or even funds to expand your business
• Consider how long you need the funds for. From 12 months to over 24 months, knowing this information is key.
• Additionally, you will need to file form 941-X Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, with your quarterly federal tax return. If you don’t have that document handy, your accountant can likely help.

Having all of this information handy will help speed up the process and make your application more efficient.

Structure of an ERTC loan

Underwriters put in a lot of effort into determining how to structure ERTC loans. Among the things underwriters consider:

• 941-X amendment: The main amendment you fill out in your ERTC loan. This is the primary document that is reviewed. Check with your accountant for access.
• Cash Flow: Underwriters look to ensure that you can continue paying back interest payments.
• Character check: ERTC loans don’t go to just anyone. Ensuring that companies that fit the correct parameters are receiving the loans is paramount.

As underwriters consider all the above qualifications, it’s important that you do as well. Make sure your company is in the right shape to look appealing to underwriters by considering these qualifications.

These benefits help outline how your business can benefit from an ERTC loan.

If you’d like to learn more about ERTC loans, we recommend watching our ERTC loan webinar, which can be found here. Additionally, you can apply online here, or call Biz2Credit at 800-200-5678.