When the COVID-19 pandemic began to shut down businesses across the U.S., significantly impacting the economy, the federal government intervened by authorizing billions in economic stimulus through the Paycheck Protection Program (PPP) and the Employee Retention Credit (ERC) program.
The ERC program gave eligible employers a payroll tax credit for continuing to employ Americans during the pandemic. Many employers took out SBA-guaranteed PPP loans in 2020 but bypassed the ERC. In subsequent legislation, the ERC was made available to more ailing businesses, including those who received PPP funds. Many more businesses qualified for ERC money than claimed it.
