Commercial Finance Partners expanded the employee retention funding program it started in late 2021. Commercial Finance Partners has facilitated financing for more than $30 million of credits to date and is now expanding the program to improve upon previously constrained size limitations and underwriting timelines. The latest changes to the program are:
- Increased size limits to $4 million
- Reduced underwriting time to an average of 10-14 days
- Simplified intercreditor tied to the ERC receivable
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“The uncertainty at the IRS has created a larger demand that we have been working on filling for the last year since launching our program.” “We have ramped up with our capital providers to create a more efficient flow of information, underwriting times, and funding timelines,” Darren Palestine, managing partner at Commercial Finance Partners, said. “Since many of these businesses are still recovering from 2020/2021, pulling forward the credit is allowing them to take advantage of the capital now versus waiting an unspecified time period from the IRS.”
The employee retention credit, or ERC, is a stimulus program that was released with the CARES Act in March 2020. A business is eligible for this tax credit or tax rebate program based on either a decline in revenue or business interruption, amongst other qualifications. This cash credit was intended to incentivize businesses to retain and continue paying their employees through the COVID-19 pandemic.
