Yes. These two options are mutually exclusive. The PPP is a $953-billion business loan program established by the US federal government and implemented by the U.S. Small Business Administration. Under the recently enacted American Rescue Plan Act, and previously under the Consolidated Appropriates Act, 2021, the ERC is a financial benefit qualified businesses can claim if the global pandemic impacted them. The ERC benefit is available for businesses immediately regardless of PPP participation.

The economic benefit of the Employee Retention Credit (ERC) for your business is significant financial relief. By taking advantage of the ERC, your business can reduce its federal employment tax liabilities, freeing up valuable funds to reinvest in operations, hire additional staff, or cover other essential expenses.

No, receiving a PPP loan does not disqualify you from the Employee Retention Credit (ERC). However, keep in mind that the same wages cannot be used for both the PPP loan forgiveness and the ERC.

Receiving the ERC refund does not disqualify you from seeking forgiveness for your PPP loan. You can still be eligible for both benefits. However, it's crucial to note that the same wages cannot be used for both the ERC and PPP loan forgiveness calculations. Each program has its separate criteria and eligible expenses.

According to the IRS, "The credit is available to eligible employers that paid qualified wages to some or all employees after March 12, 2020, and before January 1, 2022. Eligibility and credit amount vary depending on when the business impacts occurred. The ERC is not available to individuals."

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