Commercial Finance Partners Expands Employee Retention Funding Program

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

“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.