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.
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
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.
See Paycheck Protection Program Frequently Asked Questions (as of May 13, 2020)
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
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 has authorized $130 million in loan and grant funding for small businesses and manufacturers that have been negatively impacted by the Coronavirus (COVID-19). This emergency assistance provides interim relief and proceeds that can be used to pay cash operating expenses including payroll, suppliers, rent, fixed debt payments and other mission critical cash operating costs.
Maryland Department of Commerce
Maryland Small Business COVID-19 Emergency Relief Loan and Grant Fund
The Maryland Small Business COVID-19 Emergency Relief Grant and Loan Funds have closed. Businesses are encouraged to consider applying for the EIDL and PPPL programs listed above.
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.
Maryland Department of Labor
At this time the Department of Labor is no longer accepting applications for the COVID-19 Layoff Aversion Fund. Please refer to the Coronavirus (COVID-19) Information for Businesses webpage for information on the new federal programs enacted by the passage of the federal Coronavirus Aid, Relief, and Economic Security Act known as the ‘CARES’ Act.