Here’s How to Apply for the Maryland COVID-19 Small Business Grant and Loan

the COVID-19[female[feminine The pandemic had a rapid and in some cases devastating economic effect, as authorities implemented social distancing measures to stop the spread of the new coronavirus. In response, public officials rolled out major new programs to provide rapid relief to small businesses last week.

On Monday, the governor larry hogan announcement a $175 million emergency funding program to provide funds. Friday afternoon at DC, Pres. donald trump sign the CARES Act in the law, which counts small businesses among the many sectors of the economy it aims to help at a time when many have been forced to lay off workers or shut down. (Watch this explainer of how the relief bill can benefit startups.)

As officials seek to keep moving to begin dispersing funds, the scope of programs is becoming clearer.

“This is the largest relief package ever passed by the United States Congress,” the US senator said. Ben Cardin (D-Maryland) said about the CARES Act during a webinar on Tuesday.

During the event organized by the Baltimore Development Corporation and M&T BankCardin joined officials including the Maryland Commerce Secretary Kelly Schulz and Stephen Umbergerthe director of the US Small Business Administration Baltimore office, to describe available programs.

Here is a breakdown of what is currently available to small businesses in Maryland. We will update as we have more information:

Paycheck Protection Program

The CARES Act includes $350 billion for this loan program designed to encourage businesses to keep people on the payroll. The key incentive? If a team stays together, the loan is cancelled. Managed by community banks and financial institutions, the loans can be used for salary costs, rent and utilities. Companies can borrow up to 2.5 times these expenses for the term of the loan. The app is here, but borrowers should consult with local banks and other SBA-approved lenders. According to this record, small businesses, and sole proprietorships can begin applying for and receiving loans April 3 through existing SBA lenders. Independent contractors and freelancers can start applying on April 10.

Employee retention credit

The CARES Act also includes a 50% tax credit for businesses that have been impacted by COVID-19 for employee wages up to $10,000. The credit is available to all employers, regardless of their business aspect, according to the US Treasury Department.

Economic Disaster Loan

Maryland has been approved as a state where businesses can apply for loans through this US Small Business Administration program. The loan is available to businesses with less than 500 employees, as well as sole proprietorships, independent contractors and cooperatives and private non-profit organizations.

It is designed to provide working capital and up to half of the previous year’s gross profit is donated. Approvals can now be made solely on the basis of the applicant’s credit score. Loans under $200,000 can also be approved without a personal guarantee.

With the passage of the CARES Act, the SBA is also offering applicants a $10,000 emergency grant, which functions as an advance on the loan. It will be approved within three days of the request and will not have to be repaid if the loan is refused. Apply here.

Worth noting: Umberger said businesses may be able to qualify for both the EIDL and the Paycheck Protection Program. But as the Paycheck Protection Program rolls out, he encouraged business owners to move forward with an EIDL application immediately.

He also added that initial bugs with the SBA website have been fixed and applications have been streamlined.

Maryland Small Business COVID-19 Emergency Relief Loan Fund

The $75 million loan program offered by the Maryland Department of Commerce offers loans of up to $50,000 to businesses with fewer than 50 employees. The loan offers payment deferral and no interest for the first 12 months, then converts to a 36 month term. Apply here.

COVID-19 Emergency Relief Grant Fund for Small Businesses in Maryland

This $50 million grant program offered by the Maryland Department of Commerce. Grants of up to $10,000 are available to provide working capital to small businesses and nonprofits. It is intended to supplement the actions carried out with banks, insurance companies and other financial partners. Apply here.

Maryland COVID-19 Emergency Relief Manufacturing Fund

The $5 million incentive program offers grants of up to $100,000 to companies that manufacture personal protective equipment or other items identified as critical needs for healthcare providers and first responders during the pandemic, such as hand sanitizers, ventilators, Tyvek suits and more. Grants are designed to augment existing operations or pivot operations. Apply here.

The state has also created a COVID-19 Layoff Aversion Fund through the Maryland Department of Labor, but it had not been accepting applications since March 31.

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