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You can apply for an ERC loan if you've applied for the Employee Retention Tax Credit but can't wait months for funds. Here are the best places to get an ERC advance.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Chelsea KrauseChelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Businesses that don’t want to wait a year or longer to receive their Employee Retention Tax Credit refunds from the IRS are turning to a faster solution: ERC loans. And finding an alternative solution has become more important than ever, given the recent IRS pause on funding ERC claims. With ERC loans, business owners can get fast access to capital without having to meet the traditional requirements of a small business loan.
We evaluated a number of lenders and ERC funding companies to find the best options for ERC loans and advances. We looked at fees, processing times, the application process, user reviews, and more to see who made the cut.
The top ERC loans should have competitive fees, high borrowing limits, short approval and funding timelines, and borrowing requirements that are easy to meet. Here are our top six picks.
Why We Chose Stenson Tamaddon For Easiest ERC Advance Application Process
If you haven’t yet filed your ERC claim, Stenson Tamaddon is a good option. Not only does this company provide ERC services that include $1 million in protection per filing, but the company also offers ERC Advances.
Through Stenson Tamddon, you can receive an advance on your ERC funds in as little as 72 hours after filing your claim. The application process is quick and easy, and there’s no fee to apply. Once you’ve applied for your ERC funds and ERC Advances, you can also take advantage of other services, including filing for the Research & Development Tax Credit or the Work Opportunity Tax Credit.
Stenson Tamaddon Fees & Terms
Stenson Tamaddon does not disclose its fees and terms for ERC Advances. However, there is no fee to apply for an ERC Advance.
Stenson Tamaddon ERC Loan Requirements
To receive an ERC Advance, you must file your ERC claim with Stenson Tamaddon.
ERC Funding Timeline
Your ERC Advance funds can be available as quickly as 72 hours after filing your claim and applying for an Advance.
Personal credit score & time in business requirements may prevent some businesses from qualifying
Must have ERC refund of at least $100K
Why We Chose Biz2Credit As The Best ERC Loan For Fast ERC Funding
If you want fast funding, look to Biz2Credit. The ERC loan application process takes approximately five minutes. Biz2Credit also works quickly to get your loan, with some borrowers receiving funds in as little as 72 hours.
Speed and simplicity aren’t all you’ll find with Biz2Credit. You’ll also receive interest-only monthly payments and a dedicated funding specialist to answer your questions and provide support throughout the loan process.
Biz2Credit Fees & Terms
Biz2Credit doesn’t disclose its rates online, so you’ll have to start the application process to learn more.
Biz2Credit offers 12-month loans of up to 65% of your ERC refund, with a maximum loan amount of $500,000. If you haven’t received your ERC refund within 12 months, the loan rolls over into an amortizing term loan for up to 24 months.
Biz2Credit's ERC Loan Requirements
Biz2Credit states that most customers who receive an ERC loan meet the following requirements:
Pending ERC credit of at least $100,000
Minimum personal credit score of 660
Business has been in operation since at least February 2020
ERC Funding Timeline
Biz2Credit ERC loan applications may be approved in as little as 24 hours. Borrowers may have their loans funded in as little as 72 hours.
Why We Chose United Capital Source As The Best ERC Loan For Businesses That Still Need To File An ERC Claim
If your business hasn’t yet filed an ERC claim, you can turn to United Capital Source. Not only does United Capital Source help you file your ERC claim, but the company can also help you secure an ERC advance. This means that you can have money in your pocket in just weeks instead of months.
However, if you’ve already filed your claim, don’t worry — you can still contact United Capital Source to potentially receive an ERC loan. United Capital Source has received excellent reviews from its users and also provides other types of small business funding.
United Capital Source Fees & Terms
Unfortunately, United Capital Source isn’t very transparent about the fees and terms of its ERC advances. Once you fill out an application, you will be contacted by a funding expert who will go over timelines and costs associated with your ERC loan.
United Capital Source ERC Loan Requirements
To qualify for an ERC advance from United Capital Source, you must meet these requirements:
Business must have full-time W-2 employees
Must have a verifiable claim for an ERC refund
ERC Funding Timeline
United Capital Source can provide ERC funds in as little as one to two weeks.
Why We Chose Valiant Capital For Overall Best ERC Advances
Valiant Capital’s ERC Advance program is different from the other options on this list. Valiant Capital’s ERC advances aren’t loans. Instead, business owners sell their anticipated ERC refunds. The advantage of this is that there is no ongoing interest or monthly repayments.
Simply pay a fee upfront (with includes a holdback) and receive your funds in a month or less in most cases. Once your IRS refund has been processed and received, the holdback will be released. No additional payments are required.
Valiant Capital Fees & Terms
Valiant Capital is very transparent in terms of its fees. You will be charged an analysis and processing fee that is equal to 5% of your ERC refund. You will also be charged a 10% holdback that will be released once payment from the IRS is received.
Since this isn’t technically an ERC loan, you will not have to worry about monthly payments or paying additional fees or interest.
Valiant Capital ERC Loan Requirements
To qualify for an ERC advance from Valiant Capital, you must meet these requirements:
Must be in good standing with creditors
No recent felonies or bankruptcies
No back taxes unless they can be paid off with advance
Board members or C-suite executives must sign validity agreements for nonprofits and foreign-owned entities
ERC Funding Timeline
Most approved applicants will receive funds in two to four weeks.
Why We Chose Peach Capital For The Best ERC Advances With Fast ERC Funding Approvals
If you don’t want to wait days or weeks to know if your loan has been approved, give Peach Capital a try. This company offers ERC advances with loan decisions made in as little as one day. Existing clients can even receive funding in just a few days.
Peach Capital has a fast and simple application process. There are no upfront fees required to receive a loan, and there are no minimum or maximum loan amounts. There are also no strict eligibility requirements, so applicants that don’t qualify elsewhere may be able to get funded provided they have a valid ERC claim filed with the IRS.
Peach Capital Fees & Terms
Peach Capital offers 12-month bridge loans with no minimum or maximum loan amount. Once funded, repayment will begin, and a balloon payment is made when your ERC refund is received. You can receive up to 65% of the value of your ERC refund through Peach Capital’s loan program.
Peach Capital does not disclose its rates and fees, so you will need to start the application process to learn more.
Peach Capital ERC Loan Requirements
To obtain an ERC loan through Peach Capital, you must have a valid ERC claim with the government. There are no credit score or cash flow requirements.
ERC Funding Timeline
Existing Peach Capital clients may receive their funds in as little as three days. New clients may receive their funds in 30 days or less.
Why We Chose Omega Funding Solutions For The Overall Best ERC Loans
Unlike many ERC lenders, Omega Funding Solutions has no minimum or maximum loan amounts. This makes it easier for businesses that have smaller ERC refunds — as well as those with larger refunds — to get fast access to the funds they need.
Omega Funding Solutions works with any business that has a valid ERC claim, even if Omega didn’t file the claim. The application and approval process is quick and easy, with loan decisions available in as little as just one day.
Omega Funding Solutions Fees & Terms
Omega Funding Solutions does not disclose its fees and/or interest for ERC loans, so you’ll have to get in touch for more information. Omega offers 12-month bridge loans of up to 60% of your ERC refund. Repayment will begin after your loan is cleared, and a balloon payment is made to pay off the loan once your refund check arrives.
Omega ERC Loan Requirements
To be eligible for Omega’s ERC loans, you must have a valid ERC claim filed with the IRS — and that’s it.
Credit score, the amount of your ERC refund, time in business, and other factors are not considered when approving your ERC loan.
ERC Funding Timeline
If you’re new to Omega Funding Solutions, you can potentially receive your ERC loan in as little as 30 days. This timeline might be shortened even more for current Omega clients.
Merchant Maverick has been researching and reviewing employee retention tax credit providers since 2022. Our writers have tested dozens of ERC companies, evaluating fees, features, refund processes, customer service, and user reviews. Read more about how we rate ERC services.
When comparing different ERC companies, we consider many data points, including relative cost and fees compared to other companies, the depth of additional accounting or tax filing services offered, rates for ERC loan or advance services, and availability in all fifty states. Our lists of the best providers include only companies we’ve deemed worthwhile from multiple vantage points, and share qualities such as widespread availability, accessibility, speed, and reasonable pricing.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the providers included meet our internal standards for quality and reputation.
What Is An ERC Loan?
Businesses that qualify for the Employee Retention Tax Credit can bypass IRS processing delays by applying for an ERC loan. ERC loans are short-term loans that give business owners can apply for while waiting for their ERC refund. A lender or ERC company provides a percentage of the borrower’s ERC refund in advance, giving the business access to capital in just weeks instead of months.
An ERC bridge loan is a type of short-term loan that gives business owners immediate access to cash. ERC bridge loans are generally repaid in one lump balloon payment once your refund is received, but you’re still likely to accrue interest.
With an ERC advance, a lender basically buys out your ERC refund. Generally, ERC advances grant you 85%-90% of your ERC refund amount. Because a lender is buying out your ERC refund rather than you borrowing against your refund with a bridge loan, you may avoid interest rates and repayment periods this way.
How Do ERC Loans Work?
After a business is approved for an ERC refund, the business owner can apply for an ERC loan (also known as an ERC advance or ERC funding) with a reputable lender or ERC company. The lender will provide a portion of the refund to the applicant in a shorter period of time — typically within 30 days.
In most cases, the borrower will pay a set fee or interest during the loan period. Once the ERC refund has been processed, the loan is repaid, and the business owner will receive the remainder of the refund.
An ERC loan is a great way to get fast access to capital, which may be critical for some businesses. However, it is important to note that these loans do come at a cost, so the total cost of getting an ERC advance should be taken into consideration before applying.
Though ERC loan eligibility requirements vary among lenders, ERC loans are typically available to any business that has been approved for an ERC refund.
In most cases, cash flow, time in business, and credit score are not requirements for receiving an ERC loan. Some lenders may have specific requirements that must be met, such as a minimum refund amount.
Common ERC Loan Fees To Watch Out For
Generally, you should expect to pay about 10%-25% of your total ERC refund for your ERC loan advance fee. Some companies also charge interest on ERC loans, so be sure to get all of the details before agreeing to any loan. Learn more about what to expect in terms of ERC fees.
Do You Have To Pay Back An ERC Loan?
You do have to repay ERC bridge loans. With more ERC loans, once you receive your ERC refund, you’ll make one balloon repayment, so you typically won’t have to make monthly repayments. Some companies also don’t charge interest as long as you pay right away when you receive your ERC refund, while others charge monthly interest in the interim.
If you get an ERC advance instead of an ERC bridge loan, you likely won’t have to pay interest.
Should You Get An ERC Loan?
Pros
No having to wait on the IRS
Typically get access to funding in 2-3 business days
Usually no monthly repayments or interest rates
Can be easier to qualify for than other business lending options
Cons
Loan fees of 10%-25% of your total ERC credit
Less of your ERC credit is usable
ERC loans are great if you need quick access to cash and either don’t qualify for or don’t want to look at other traditional business funding options like small business loans or lines of credit. If you are comfortable with paying the ERC loan fees to trade for faster access to your ERC credit refund, then an ERC loan is a good option. Learn more about whether or not you should get an ERC loan.
Which ERC Loan Is Right For Your Business?
Before taking out an ERC loan, it’s important to do your research. Reputable ERC companies should at least offer a free consultation so you know what to expect before paying any money upfront. Make sure you have a full understanding of fees, loan repayment terms, and funding timelines. You also want to properly vet any company you opt to work with to avoid potential ERC scams.
Also, it’s important to remember that these loans do come at a price. If you need immediate ERC funding, the fees and other costs may be worth it. However, if you don’t need funds in the near future, you may want to consider waiting for your refund so you can put more cash into your pocket.
And if you haven’t yet filed an ERC claim? Don’t worry — there’s still time! Many small business owners don’t even realize they qualify for the ERC and could be missing out on thousands of dollars. You can apply for the Employee Retention Tax Credit yourself, but if you find that prospect overwhelming, we’ve researched the top ERC companies you can hire to file your amended return and get you your refund. Good luck!
FAQs About ERC Loans & Funding
Are Employee Retention Tax Credit loans legit?
There are companies that offer legitimate ERC loans if you need your ERC refund fast. You can receive an advance of your ERC refund in exchange for a fee or monthly interest payments. It is important to note that the IRS has warned about ERC scams, so make sure that any ERC company or lender you work with is a reputable business.
Can I borrow money against my ERC refund?
It is possible to borrow money using your ERC refund as collateral with an ERC refund or advance. In most cases, you will be given a percentage of your ERC refund in advance and will pay a fee or make monthly interest payments. Once your refund has been received, you will make a balloon payment to pay off the balance of your loan.
Will the ERC pause affect processing timelines?
The ERC pause has increased employee retention credit processing timelines from 90 days to 180 days, so many business owners may need to turn to ERC loans to get access to their refund if they don’t want to wait on the IRS.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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Expert ERC Filing SupportTrust ERC Specialists to maximize your tax credits.Experience competitive rates, excellent customer support, and a fast & easy claim process. Request a free analysis today.Get StartedClaim your ERC now
Experience competitive rates, excellent customer support, and a fast & easy claim process. Request a free analysis today.
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