Option #2: Government Imposed Order
If your business was affected by more than a nominal amount due to a government-imposed order, then you automatically qualify for the ERC.
The IRS defines a "nominal amount" as being 10% or more. This not only refers to revenue, but it can also refer to employee hours worked or billing hours for a segment of your business that represented more than a nominal amount. This includes any actual closures, as well as restrictions on hours or capacity.
It also could include CDC and OSHA guidelines. This may also extend to vendors and suppliers of the business if the business’s operations were affected as a result of their inability to obtain important goods or materials from its vendors due to government-imposed orders.
Our comprehensive analysis of the business’ circumstances includes consideration of all facts related to your qualification.
Please Note: Even if your business increased its revenue, you could still qualify.