COVID-19 Relief: Financial Assistance for Maryland Businesses
March 24, 2020
On March 23, 2020, in response to the Coronavirus pandemic, Governor Hogan issued an order requiring all non-essential businesses and other establishments to close. This mandatory order will cause severe pain to Maryland businesses that are already suffering due to the pandemic.
Fortunately, on the same day, Maryland also announced that it is rolling out financial assistance to small businesses impacted by COVID-19. The financial assistance comes in four separate programs and is in addition to funding provided by the federal government through SBA loans.
Below are the key terms of the financial relief programs, as well as links to apply and obtain further details:
Layoff Aversion Fund – $7 million grant fund
Grant terms:
Grants of up to $50,000
Eligible uses – purchasing equipment and software for working remotely; cleaning/sanitation supplies; additional insurance
Generally cannot be used for wages and benefits
Eligibility:
Maryland non-profit or for-profit businesses impacted by the COVID-19 with 500 or fewer employees in Maryland
Up to date on unemployment insurance taxes and in good standing with Comptroller of Maryland and Maryland Department of Labor
Emergency Relief Loan Fund – $75 million loan fund
Loan terms:
Loans up to $50,000 (not to exceed three months of cash operating expenses)
0% for the first 12 months, and 2% for the remaining 36 months
No collateral requirements
Eligible uses include: working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations
Eligibility:
Maryland for-profit businesses impacted by the COVID-19 with fewer than 50 employees
Must demonstrate financial stress or disrupted operations
Business must be established prior to March 9, 2020 and in good standing
Two years of historical financial statements and most recent interim statement to benchmark revenue against (if available)
Six month pro forma of estimated lost revenue or other documented loss evidence
Emergency Relief Grant Fund – $50 million grant fund
Grant terms:
Grants of up to $10,000 for businesses and non-profits (not to exceed 3 months of cash operating expenses)
Eligible uses include: working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations
Eligibility:
Business must be established prior to March 9, 2020 and in good standing
Must demonstrate financial stress or disrupted operations
Annual Revenues of the business or nonprofit not to exceed $5 million as evidenced by Financial Statement or other financial documentation
Business or nonprofit is expected to seek longer term funding through its bank, SBA, or other source
Emergency Relief Manufacturing Fund – $5 million incentive program
This fund is intended to incentivize Maryland manufacturers to produce personal protective equipment (PPE) for hospitals and health-care workers across the country
More details are expected to be announced by Friday, March 27, 2020
Stay up to date with all the latest news and events.
