Lendio Pledges Continued Support for Small Businesses with Employee Retention Tax Credit Applications

Summary

A Lendio news release from Lehi, Utah in October 2023, headed that 5,000 small businesses have received over $300 million from the ERC with Lendio. It says Lendio reaffirmed its commitment to helping small businesses with the Employee Retention Credit (ERC) and notes that the Internal Revenue Service (IRS) announced a moratorium on processing new claims until at least January 2024. The release states that SMBs can receive up to $26,000 per W-2 employee and that the average application submitted through Lendio receives a tax credit of $70,000, marked as Lendio internal data. It lists the 2020 and 2021 qualifications and the recovery startup business criteria, and quotes Brock Blake, Lendio CEO and co-founder.

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Lendio Pledges Continued Support for Small Businesses with Employee Retention Tax Credit Applications

By

Lendio

October 25, 2023

—

3 min read

5,000 small businesses have received over $300 million from the ERC with Lendio

LEHI, Utah—Oct. 26, 2023—Lendio, the nation’s leading small business financial solutions platform, today reaffirmed its commitment to supporting small businesses (SMBs) with the Employee Retention Credit (ERC) and navigating the application process for SMBs with Lendio’s tax partners. While the Internal Revenue Service (IRS) announced a moratorium last month on processing new claims until at least January 2024, eligible SMBs can still submit their ERC application now, to be reviewed when the IRS re-commences them. SMBs can receive up to $26,000 per W-2 employee, and the average application submitted through Lendio receives a tax credit of $70,000.*

The ERC first launched in the early days of the COVID-19 pandemic with the CARES Act relief package, as a refundable tax credit intended to encourage businesses to continue to pay employees throughout government shutdowns during the pandemic. It is still available retroactively for both 2020 and 2021, for businesses who meet specific criteria, which is listed below.

“Lendio is in the business of helping small businesses survive and thrive, and coming off the heels of a global pandemic, access to capital, including tax credits, is an important part of that,” said Brock Blake, Lendio CEO and co-founder. “The Employee Retention Tax Credit rewards employers who kept their employees on during things like government mandates that shuttered restaurants, retail shops and more. We’ve already helped thousands of small businesses and we’re excited to help even more over the coming months.”

Small businesses can determine their eligibility for ERC on lendio.com and work with an ERC specialist on their application. Lendio partners with CPAs and tax experts to ensure applications are handled with the highest quality standards.

ERC qualifications

The IRS has specified the following criteria for eligibility for the ERC:

2020 qualifications:

- Qualifying wages of up to 100 full-time employees
- A decrease in gross revenue of at least 50% compared to the corresponding quarter in 2019
- Or either a full or partial suspension of business operations created by a government mandate

2021 qualifications:

- Qualifying wages of up to 500 full-time employees
- A decrease in gross revenue of at least 20% compared to the corresponding quarter in 2019
- Or either a full or partial suspension of business operations created by a government mandate

Recovery startup business eligibility:

Businesses can also qualify as a recovery startup business if they opened after February 15, 2020, have one or more W-2 employees and annual gross receipts under $1 million in 2020 and 2021.

Lendio also has a variety of educational materials and information on ERC available, for free, on its website:

About Lendio (www.lendio.com)

Lendio is the nation’s leading small business financial solutions provider, with a mission to help small businesses survive and thrive. With its diverse network of lenders, Lendio enables small business owners to apply for multiple business financing options with a single application. In addition to creating access to small business capital, Lendio offers time-saving financial SaaS products that are designed to streamline business operations.

Lendio is a mission-driven organization striving to provide equal access to capital to underserved communities and America’s smallest businesses. For every new marketplace loan Lendio facilitates, Lendio Gives —an employee-contribution and employer-matching fund, in partnership with KIVA–provides a microloan to low-income entrepreneurs around the world, continuously re-investing the fund.

*Lendio internal data

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