This is an excerpt of an article on talkmarkets.com
During the upheaval caused by the COVID-19 pandemic, the U.S. federal government introduced the Employee Retention Credit (ERC). This initiative was not a loan requiring repayment, but a refundable federal tax credit. The goal? Encourage businesses to keep their employees on the payroll amidst challenging times.
Businesses qualify for the ERC if they have experienced significant and gross declines in 2020 and 2021, operate within the United States, have undergone a full or partial shutdown mandated by authorities, and meet the criteria of a Recovery Startup Business in the third or fourth quarter of 2021.