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Complete our simple online form and receive swift approvals.
2
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Get the Best Small Business Loan for Employee Retention Tax Credit
Our team of Employee Retention Tax Credit (ERTC) experts is here to assist you every step of the way, ensuring your business receives the tax credits it qualifies for. Let us simplify the process and help you maximize your benefits.
ERTC Advance Payments
​The IRS currently takes anywhere from 6-12+ months to issue Employee Retention Tax Credit (ERTC) refunds and has stopped offering advance payments. However, you don't have to wait for the government to process your refund. Through United Capital Source, you can get an advance payment on your ERC tax credit, giving you access to your money much sooner.
This guide explains how ERC advance payments work, including eligibility requirements, the application process, and the pros and cons of using an ERC advance. Specifically, we'll answer the following questions:
The Employee Retention Tax Credit (ERTC) is a refundable tax credit introduced under the CARES Act to incentivize companies to retain employees during the COVID-19 pandemic. Eligible employers could claim a payroll tax refund for qualified wages paid during the pandemic.
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Eligibility Requirements:
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Businesses that experienced a full or partial shutdown due to a government order.
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Businesses with a decline in gross receipts of 50% or more (2020) or 20% or more (2021) compared to the same quarter in 2019.
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Credit Amounts:
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2020: Up to 50% of $10,000 in wages per employee for qualifying quarters (maximum $5,000 per employee annually).
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2021: Up to 70% of $10,000 in wages per employee per quarter (maximum $21,000 per employee annually).
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What is the Employee Retention Tax Credit?
Eligibility depends on payroll periods:
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March 13, 2020 – December 31, 2020:
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Businesses partially or fully shut down by government order.
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Experienced a 50% or greater decline in gross receipts compared to the same quarter in 2019.
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January 1, 2021 – September 30, 2021:
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Businesses fully or partially shut down by government order.
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Experienced a 20% or greater decline in gross receipts compared to the same quarter in 2019.
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October 1, 2021 – December 31, 2021:
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Only recovery startup businesses qualify, defined as businesses that began operations after February 15, 2020, with average annual gross receipts under $1 million.
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Who is Eligible for an ERC?
An ERC advance allows businesses to access their tax credit sooner. Business owners essentially sign over their rights to the ERC refund in exchange for an advance payment from a lender.
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How It Works:
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The IRS issues the ERC refund check directly to the lender, who deducts the advance amount and associated fees.
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Some lenders charge a one-time fee, while others charge a small monthly interest rate until repayment.
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This is not a traditional loan; it's an advance on expected credits.
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How Does Advance Payment for ERC Work?
What Are the Qualifications for an ERTC Advance?
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Eligible employers must meet the following criteria:
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Full-time W2 employees.
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Verifiable ERC refund.
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Minimal or no requirements for credit scores or cash flow.
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Step 1: File for Your ERC with the IRS - File independently or work with an ERTC expert to maximize your credit.
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Step 2: Gather Your Documents You'll need:
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Completed application.
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IRS Form 8821 & 7216.
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IRS Form 941 (original) and 941x (amended).
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ERC calculations and qualification documentation.
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941s for the two most recent quarters.
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Government ID for owners with 20%+ stake.
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Recent business tax return.
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Bank statements (past 3 months).
Additional Documents Post-Approval:
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W-9 form.
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Step 3: Complete the Application
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Submit your application online or through a downloadable form.
Step 4: Consult with an ERC Loan Expert
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A funding expert will discuss your refund amount, timeline, and associated costs.
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Step 5: Accept and Get Your Funds
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Once finalized, funds are disbursed based on the agreed timeline. Repayment occurs when the IRS issues the ERC refund check.
How to Apply for an ERTC
Advance Payment
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Pros:
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Quick access to approved funds.
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Cover operational expenses.
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Potential tax deduction on interest/fees paid.
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Cons:
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Interest/fees on the advance.
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Reconciliation required against the actual ERC.
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Extensive documentation needed.
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Pros & Cons of an ERC
Loan Advance
Does the IRS offer advance payment for an expected tax credit?
- No, the IRS no longer offers advance payments for ERC refunds.
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What wages qualify for Employee Retention Credits?
- Wages paid during qualifying quarters in 2020 and 2021, including certain health plan expenses.
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Why does it take so long to receive an IRS ERC?
- Processing delays stem from the high volume of claims and IRS staffing issues.
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How do I file for an ERC?
- File Form 941 and Form 941x (if amending) with the IRS.
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How do I find out how much I can receive for an ERC?
- Consult with an ERTC expert to calculate your expected credit.
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When does the ERC expire?
- The ERC program ended on September 30, 2021, except for recovery startup businesses (through December 31, 2021).
​Frequently Asked Questions
ERTC Advance - Final Thoughts
f your business retained employees during the COVID-19 pandemic, you may qualify for an ERC tax credit. While IRS processing times can be lengthy, an ERC loan advance provides a way to access those funds sooner. United Capital Source offers expert assistance to help you file for an ERC and secure an advance payment, ensuring you get the money you need without waiting months or even years.
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