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Coronavirus Relief Options for Maryland Businesses

Coronavirus Relief Options for Maryland Businesses

Following is information about local initiatives to provide financial disaster relief:

SBA Economic Injury Disaster Loans (Maryland Declaration 16376)

-    Available to businesses in all counties of Maryland

-    Application Filing Deadline is December 21, 2020

-    Working capital loans to help small businesses, small agricultural cooperatives and most private non-profits meet their ongoing financial obligations [1]

-    Collateral is required for loans over $25,000

-    Fixed rate set by formula. 3.75% is the maximum interest rate.

-    Loan terms can be up to 30 years but will vary depending on the financial condition of the borrower as determined by the SBA

-    Maximum loan limit of $2 million

To apply, please go to disasterloan.sba.gov/ela.  Due to the anticipated volume of applicants, loans will likely take at least 30 days to process.  

[1] These loans cannot be used to refinance long-term debt

Maryland Department of Labor COVID-19 Layoff Aversion Fund

-    Up to $50,000 per applicant for businesses that are undergoing economic stress as a result of the coronavirus

-    Business owners can get funds from now through 30 days after the State of Emergency ends

-    Examples of how this funding can help are as follows:

o    Funds to cover cost of purchasing remote access or purchasing software that employees need to work from home;

o    Funds to cover the cost of cleaning and sanitization services;

o    Funds to pay for liability insurance so restaurants can convert to delivery service;

o    Funds to pay for professional development so employees do not have to be laid off; and

o    Supplementing employees’ income and benefits for businesses that take advantage of the Maryland Unemployment Insurance Work Sharing Program.

To apply, please go to http://www.labor.maryland.gov/employment/covidlafund.shtml and at the bottom of the page click on the link titled “COVID-19 Layoff Aversion Fund Application (Excel)”.  Once you complete the application, please send it to LaborCOVID19.layoffaversion@maryland.gov. 

Maryland COVID-19 Emergency Relief Fund Programs for Businesses

-    $130 million in loan and grant funding for small businesses and manufacturers

-    Can be used to pay operating expenses such as payroll, suppliers and rent

-    Maryland-based businesses with under 50 employees are eligible for the following:

o    Maryland Small Business COVID-19 Emergency Relief Loan Fund: No interest or principal payments for the first 12 months of the loan.  Following the 12th month, the loan converts to a normal 36-month term loan with an interest rate no higher than 2%.

o    Maryland Small Business COVID-19 Emergency Relief Grant Fund: Grant amounts up to $10,000, not to exceed 3 months of cash operating expenses.

o    Maryland COVID-19 Emerging Relief Manufacturing Fund: Incentives to help Maryland manufacturers produce personal protective equipment urgently needed in the health care industry.

To apply, please go to this link https://commerce.maryland.gov/fund/maryland-small-business-covid-19-emergency-relief-fund-programs and select the program that best fits your needs.