Event Venues/Hotels

The leisure and hospitality industry lost billions in revenue during the pandemic. Some facilities were initially forced to close—only to later reopen, subject to suffocating capacity restrictions and social distancing procedures. Many mixed-accommodation facilities remained open for the duration of the pandemic, but experienced partial governmental shutdown of certain services (e.g., in-person events and dining services). ERC eligibility may arise from actual closures, operations restricted by governmental orders, or showing that the business suffered a reduction in gross receipts (50% decline or 20% decline in gross receipts for the relevant quarter(s) in 2020 and 2021, respectively, as compared to the same 2019 quarter(s)).

Launched in March 2020, the ERC remains one of the biggest relief opportunities available to businesses that have been negatively impacted by the COVID-19 pandemic. Employers should remember: (1) the ERC is available even if they already received Paycheck Protection Program (PPP) loans or Shuttered Venue Operator Grants, and (2) businesses that started up after February 2020 may qualify under specific ERC provisions.