Sep. 26, 2021
The American Rental Association (ARA) has joined numerous other associations and organizations to send a letter to key members of the U.S. House of Representatives and Senate asking them to continue access to the Employee Retention Tax Credit (ERTC) through the end of 2021.
The letter — sent to Speaker of the House Nancy Pelosi; House Minority Leader Kevin McCarthy; Senate Majority Leader Charles Schumer; and Senate Minority Leader Mitch McConnell — expresses the following concern for small businesses relying on the ERTC:
“As passed by the Senate, the Infrastructure Investment and Jobs Act terminates the ERTC three months early making wages paid after Sept. 30, 2021, ineligible for the credit. The Senate has proposed that the bill will be partially paid for with unused coronavirus (COVID-19) funds. The misnomer in that statement is that many small businesses remain in need with the rise of the COVID-19 Delta variant and are counting on these funds for survival.
When the American Rescue Plan Act of 2021 was passed in March 2021, the employee retention credit was originally expanded for wages paid through Dec. 31, 2021. Many businesses have been forecasting with the anticipation for the employee retention credits through the end of Dec. 31, 2021. The need for cash is readily apparent in our industries as more and more businesses continue to struggle. In fact, according to a recent Goldman Sachs survey of more than 1,100 small businesses, 44 percent of U.S. small businesses have less than three months of cash reserves, leaving them vulnerable to prolonged shutdowns due to the Delta variant.
The ERTC is one of the few financial safety nets available to small businesses during the pandemic and has enabled America’s employers to keep employees on the payroll. Cutting off this small business lifeline before the planned deadline would greatly impact businesses fighting to remain open for business, and hard-working Americans employed.”
Click here to read the full letter.
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