For small businesses and employers impacted by the coronavirus pandemic, there are some financial resources available to help you through this crisis.
Small Business Administration (SBA) Economic Injury Disaster Loan Program
Based on the recently signed “Coronavirus Preparedness and Response Supplemental Appropriations Act,” most small businesses should be eligible for SBA Disaster Loans up to $2.0 million.
The loans generally can be used for working capital, and most other expenditures that can’t be paid because of the disaster’s impact. The interest rate can’t exceed 3.75% and terms can be as long as 30 years.
To find more information (and to apply online) visit the SBA site at: SBA Disaster Loan. Note that the SBA will be processing millions of applications. Filing early and accurately is critical.
For Maryland businesses, the Maryland Department of Commerce and the Maryland Department of Labor are providing several business assistance programs.
Maryland Small Business Emergency Relief Loan Fund
This fund offers loans with no interest or payments due for the first 12 months, then converts to a 36-month term loan with interest of 2%. To find out more, click here.
Maryland Small Business Emergency Relief Grant Fund
This fund offers grants of up to $10,000 not to exceed three months of operating expenses for the first quarter of 2020. To learn more, go here.
Maryland Covid-19 Emergency Relief Manufacturing Fund
This incentive program helps manufacturers to produce personal protective equipment (PPE) that is needed by healthcare workers responding to the COVID-19 pandemic. More details will be announced Friday, March 27. To get updates, check back here.
Maryland Covid-19 Layoff Aversion Fund
This fund provides money to companies with 500 or fewer employees to purchase remote access equipment and software to allow workers to work from home or to use other strategies to prevent layoffs and closures. Get more information and apply here.
As always, we advise that you discuss these matters with your CPA and business attorney, when necessary. Please call us with any questions.