BATON ROUGE, La. (WAFB) - Business now have more time to apply for critical funds and there are a couple options that will require some consideration.
Small business owners can use the Paycheck Protection Program with loan forgiveness, or they can use the Employee Retention Refundable payroll tax credit, but they cannot take advantage of both because the eligibility criteria is different.
President Joe Biden extended the Paycheck Protection Program through Memorial Day (May 25, 2021). It offers government backed grants if businesses use the funds to pay for payroll.
The Employee Retention Credit is an optional refundable payroll tax credit of 50% of wages on the first $10,000 of wages per employee. Eligible wages are those between March 13 through the end of the year.
Large businesses only quality if they had to shut down because of a government order.
Small businesses qualify if;
1) They had to close because of a government shutdown;
2) Their gross receipts dropped by 50% from the same time period in 2019.
Make sure you know what option is best for your business.
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