The global COVID-19 pandemic has brought unprecedented challenges to various industries, with the restaurant sector being among the most brutal hit. In 2020 and 2021, countless restaurants across the United States faced the harsh realities of COVID-19 restrictions, lockdowns, and staffing issues. However, amidst these trying times, there is hope in the form of the Employee Retention Tax Credit (ERTC) program. This article explores how COVID-19 may have impacted your restaurant business and how you can use the ERTC to secure the funding you deserve.
Understanding the Restaurant Industry’s Struggles
The restaurant industry has always been a cornerstone of American culture, providing people with delicious meals and memorable dining experiences. However, the emergence of the COVID-19 pandemic in early 2020 brought this bustling industry to a screeching halt. Social distancing measures, government-imposed restrictions, and public health concerns drastically reduced restaurant capacity and customer traffic. As a result, many restaurants were forced to close their doors temporarily, reduce staff, or even shut down permanently.
The economic fallout from COVID-19 took its toll on restaurant owners, employees, and suppliers alike. While some businesses managed to adapt by offering takeout and delivery services, the challenges remained daunting. As restaurant owners grappled with declining revenues and uncertain futures, they faced the complexities of navigating government aid programs, such as the ERTC.
The Complex Process of Qualifying for ERTC
Many restaurant owners were initially discouraged from pursuing the ERTC due to misconceptions about the program’s eligibility requirements. Some CPAs and accounting firms advised against applying for the credit, believing businesses needed to demonstrate a yearly revenue decline to qualify. However, the reality is far more nuanced.
The Employee Retention Tax Credit program offers potential relief for businesses that experienced specific COVID-related challenges. While a yearly revenue decline is one path to eligibility, it is not the only one. If your restaurant faced supply chain disruptions, government-mandated shutdowns, or quarterly revenue declines during the pandemic, you may still qualify for ERTC funding.
Supply Chain Issues: A Hidden Eligibility Criterion
One often-overlooked avenue for ERTC qualification relates to supply chain disruptions. Many restaurants rely on a steady stream of ingredients and goods to operate efficiently. However, the pandemic created widespread supply chain challenges, leading to delays and shortages that directly impacted the restaurant industry.
If your restaurant struggled to secure essential supplies due to disruptions in your supply chain, you may be eligible for ERTC. These supply chain issues hindered your ability to maintain operations and serve customers, making you a candidate for ERTC assistance.
Government Mandates and Shutdowns
Another crucial criterion for ERTC qualification is the impact of government orders. Local, state, and federal governments implemented various measures to combat the spread of COVID-19. These included mandatory closures, capacity limits, and restaurant dining restrictions.
If your restaurant was forced to shut down temporarily or limit its operations due to government orders, you likely meet the requirements for ERTC eligibility. These government mandates directly affect your ability to retain employees and continue your business operations.
Quarterly Revenue Declines
While some businesses experienced annual revenue declines, others faced quarterly challenges. The pandemic’s economic turbulence meant that restaurants often saw fluctuations in their yearly income. If your restaurant had quarterly revenue declines that met the ERTC program’s criteria, you may qualify for financial relief.
Expert Assistance in ERTC Qualification
Navigating the complexities of the Employee Retention Tax Credit program can be challenging, but you don’t have to go it alone. Expert ERTC companies specialize in helping restaurants like yours secure the funding they deserve. These professionals understand the intricacies of the program and can assist you in preparing a solid case for eligibility.
Securing Your ERTC Funding
Obtaining ERTC funding begins with a thorough evaluation of your restaurant’s circumstances. Expert ERTC companies will review your financial records, supply chain challenges, government-mandated closures, and revenue fluctuations. They will work diligently to ensure that your business meets the ERTC program’s requirements, even if you don’t experience a yearly revenue decline.
One of the nation’s largest ERTC companies, we have a proven track record of securing substantial refunds for restaurants with as few as ten employees. On average, our clients have received ERTC refunds totalling an impressive $260,000. We take pride in our ability to go the extra mile, conducting thorough research and analysis to maximize your potential ERTC funding.
Your Non-Profit likely Does Qualify for ERTC Funding
The impact of COVID-19 on the restaurant industry has been profound and far-reaching. However, there is hope on the horizon in the form of the Employee Retention Tax Credit program. If your restaurant faced supply chain disruptions, government-mandated shutdowns, or quarterly revenue declines during the pandemic, you likely qualify for ERTC funding.
Don’t let misconceptions about eligibility deter you from seeking the financial assistance your restaurant deserves. I am here to guide you through the process, ensuring your business can recover and thrive. With my assistance, you can secure the funding you need to rebuild your restaurant, rehire staff, and continue delighting your customers with exceptional dining experiences. The road to recovery may be challenging, but with the Employee Retention Tax Credit program, you have a valuable resource to support your journey.
Solutions by Mike Miller, CPA 