Hundreds of thousands of business owners, including Alexis Percival of the now-closed Kindred restaurant, are still waiting for federal COVID-19 relief funds owed to them. Percival and others were promised funds through the federal employee retention tax credit to help struggling businesses, but the Internal Revenue Service has been delayed due to fraud concerns.
New York lawmakers, including Rep. Dan Goldman, are urging the IRS to expedite the distribution of funds to deserving businesses. Percival believes her restaurant would still be open if they had received the money in a timely manner. The credit was meant to provide up to $26,000 per employee to eligible businesses, but many small business owners are still struggling to recover financially.
The IRS halted new claims last year, citing a backlog of applications. While they have begun processing claims again, the delay has caused significant hardships for many businesses. Lawmakers have praised the IRS for their diligence but have called for faster processing to alleviate financial burdens on businesses, especially restaurants in New York City.
Despite having successfully applied for the funds, Percival is still waiting on a disbursement for her business. She has lost hope that Kindred will ever reopen but is grateful to still have a wine bar in operation. Many other business owners have not been as fortunate and continue to face uncertainty and financial challenges.
Lawmakers are continuing to push the IRS to expedite the distribution of funds to deserving businesses and alleviate the financial strain that many are still experiencing.
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