COVID-19 Small Business Relief
There are numerous local and national programs for businesses in need of emergency support, but understanding which options are relevant for your organization can be a challenge. The Maryland Business Relief Wizard is a tool that helps connect businesses with the resources and programming for which they’re eligible, streamlining the process of finding support.
The US Chamber of Commerce has also compiled a Coronavirus Emergency Loans Small Business Guide and Checklist to help small business owners understand the aid available to them through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
US Small Business Administration
In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak. See the SBA Coronavirus Pandemic Loans Comparison Guide to better understand the differences between each program.
EIDL is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments.
SBA resumed accepting new Economic Injury Disaster Loan (EIDL) applications on June 15 to all qualified small businesses, including U.S. agricultural businesses.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
When will you get your money?
The quick grant money portion of the EIDL program ($1000 per employee, up to $10,000) started going out Friday, April 10th. Check your bank account. Also, if you didn’t receive an email notification, check your spam file for an email from SBA.gov. Never SBA.com.
Notice: Paycheck Protection Program closed August 8, 2020
PPP Loan Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Read the Guide to PPP Loan Forgiveness.
When will you get your money?
You applied through your bank so it will be your bank that notifies you of any updates. Check with your bank to see if they will provide you an update and ask how they will notify you (email, phone, just deposit money into your account). Once you receive money, be sure to track how you spend it to make verification easier. According to the SBA, you have 8 weeks from the time you receive the money, to spend it (mainly on payroll costs). You have until June 2021 to request forgiveness.
As part of SBA’s debt relief efforts,
- The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
- The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
Internal Revenue Service/Treasury Department
The Treasury Department and the Internal Revenue Service launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
State of Maryland Assistance
Maryland Department of Commerce
Maryland Small Business Development Financing Authority - COVID-19 Emergency Relief Loan Fund
The new MSBDFA Program - COVID-19 Emergency Relief Loan Fund provides emergency financial relief to eligible businesses that have experienced economic hardship due to the ongoing pandemic with low-interest rates and low-documentation loans. Five-year term loans ranging from $25,000 to $200,000 will be available with an interest rate of zero percent for the first 12 months and two percent for the remaining term of the loan.
Maryland Small Business COVID-19 Emergency Relief Loan and Grant Fund
Additional funding has been allocated to the COVID-19 Emergency Relief Grant Fund and will become available on July 20. Maryland Department of Commerce is not accepting new grant applications and will continue to distribute funds on a first-come, first served basis based on the applications already received.
Check the Status of Your Maryland COVID-19 Loan/Grant
If you have submitted an application for the Maryland Small Business COVID-19 Emergency Relief Loan/Grant you can now check the status of that application by signing up for a Maryland OneStop account. Please be sure to use the same email address that was used in your original application. This does not offer updates on federal loan applications.
Maryland COVID-19 Emergency Relief Manufacturing Fund
This $5 million incentive program helps Maryland manufacturers to produce personal protective equipment and other items identified as Critical Needs Items by MEMA and DGS, that are urgently needed by the State of Maryland, Maryland-based hospitals and healthcare facilities, and emergency and first responders.