COVID-19

Financial Assistance & Taxes

 

Local:

 
Garrett County Development Corporation: 

Small Business Pandemic Interim Loan:  A newly developed local small business loan program designed to assist Garrett County small businesses through the COVID-19 health crisis has been announced jointly by the Board of County Commissioners for Garrett County and the Garrett County Development Corporation. The goal of the program is to provide small businesses with loans for interim emergency funding to help pay legitimate business expenses such as mortgage, rent, utilities, insurance, taxes, etc. in order to remain solvent, continue business operations, or eventually restart the business.

To be eligible for the loan, of a maximum of $5,000, businesses must be native to and located in Garrett County. Eligible applicants are small businesses and service-based businesses that have a minimum of 2, but no more than 10 employees and restaurants of any size. Please visit this link for additional information and to access the loan application.

 

Federal:

 
Federal Reserve:  The Federal Reserve has established the Main Street Lending Program to support lending to small- and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. Eligible businesses must have 15,000 or few employees or had 2019 revenues of $5 billion or less. The minimum loan amount is $500,000.
 
Internal Revenue Service: The U.S.Treasury Department and the Internal Revenue Service have 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. Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.
 
Other employer tax credits for businesses affected by COVID-19 include the new employer credti available for paid family leave and the new employer credit available for paid sick leave.

Visit the IRS's coronavirus web page for additional information on economic impact payments and what benefits may be available to your business.
 
U.S. Chamber of Commerce:  The U.S. Chamber Foundation is working to help as many employers as possible stay afloat during the worst of the crisis. Through its new Save Small Business Fund, qualifying businesses in the United States and its territories can apply for $5,000 emergency grants. The application will go live today, April 20, 2020, at 3 PM ET.
 
U.S. Small Business Administration (SBA):

Economic Injury Disaster Loans (EIDLS):  All small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes located within the State of Maryland and have been economically injured by COVID-19 are eligible to apply for working capital loans to help meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period. Application Deadline:  December 21, 2020.

If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application. If you are interested in obtaining the advance, please check the appropriate box in the EIDLS application. The entire $10,000 Advance will be forgiven, even if you decide later not to accept the Economic Injury Disaster Loan. 

Sole proprietorships and self-employed individuals are eligible for this program. Access the Step-by-Step EIDL Application Guide here.

The SBA District and Regional Offices are offering webinars about Economic Injury Disaster Loans. These webinars explain SBA's Economic Injury Disaster Loan Program and how you can apply for disaster assistance. Sign up for SBA newsletters using your zip code to get updates.

The Western Maryland Office of the Maryland Small Business Development Center (SBDC) has consultants available to answer your questions and assist you in the preparation/filing of your loan application. Please register for assistance here or contact the SBDC at (888) 237-9007.

Express Bridge Loans:  If you have previously worked with an SBA Express Lender for small business, you may qualify for an Express Bridge Loan to help you overcome temporary loss of revenue. These loans can be a term loan or used to bridge the gap while applying for an SBA Economic Injury Disaster loan. 

Paycheck Protection Program Loans:  The Paycheck Protection Program Loan, authorized under the CARES Act, prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. Application deadline: June 30, 2020.

The loan amounts will be forgiven as long as the loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; AND employee and compensation levels are maintained.

Payroll costs are capped at $100,000 on an annualized basis for each employee. It is anticipated that, due to the likely high number of businesses taking advantage of this loan, that not more than 25% of the foregiven amount may be used for non-payroll costs. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

In addition, the SBA's interim final rule for the Paycheck Protection Program confirms the SBA will remove industry-specific revenue thresholds, making agriculture enterprises that employ 500 or less people whose principal place of residence is in the United States eligible for participation in the program, regardless of revenue levels.

You must apply through a local SBA-authorized lender for the Paycheck Protection Program loan. SBA lenders in Garrett County include Clear Mountain Bank, First People's Community Federal Credit Union, First United Bank and Trust, and BB&T.

You  may apply for both the Economic Injury Disaster Loan (EIDLS) and the Paycheck Protection Program Loan, but they must be used for separate purposes.

Existing SBA Business Loan Hiatus:  Business owners who already have an existing SBA loan may not have to pay interest or principal on it for six months. Please check with your lending institution to see if you qualify.
 

State:

 
Comptroller of Maryland:  The Comptroller of Maryland has extended business tax filing deadlines to June 1, 2020 for some businesses with March, April and May due dates. A dedicated email address has been established for questions at taxpayerrelief@maryland.gov.
 
Council of Development Finance Agencies (CDFA):  The CFA has launched a new COVID-19 Resource Center to serve as a central hub of everything the development finance world is doing to mitigate the impacts of COVID-19. The Resource Center includes a State Response Map, which has financing programs and related headlines for all 50 states, information on CDFA's Comprehensive Recovery Strategy, up-to-the-minute news, federal, state and local resources, and more.
 
MARBIDCO:  MARBIDCO is offering loans through its new Pandemic Adjustment Loan Fund to help Maryland's food and fiber producers, harvesters and primary processors adjust to the business disruptions caused by COVID-19. The program is targeted to assist existing agriculture or resource based enterprises in making timely adjustments to their business operations to help take advantage of new or continuing market opportunities. Eligible farms and rural businesses can apply for loans up to $3,000 in working capital and up to $10,000 for equipment purchases at low interest rates with flexible terms. Loan repayments will be interest only for five months followed by payments for 12 to 36 months with a rate of 3.75%. Borrowers who make all their payments will receive a 10% grant back (of the original amount borrowed) at the end of the loan term. Applications must be submitted by June 15, 2020. The application form is available on the MARBIDCO website at www.marbidco.org. For questions, please call the office at (410) 267-6807. Due to current social distancing procedures, phone calls may not be readily answered (but all calls will be returned).
 
MARBIDCO is also offering grants through its Pandemic Adjustment Equipment Grant Fund to help Maryland's food and fiber producers, harvesters, and primary processors make necessary adjustments in their business operations which are necessitated by the impact of the pandemic. The program will enable applicants to receive grants for qualifying capital equipment purchases and facility upgrades for on-farm production, processing and storage, as well as wood processing and seafood processing, on the condition that these businesses are making pandemic-related  business improvements. Grants ranging from $1,000 up to a maximum of $50,000 (or $75,000 for wood and seafood processors or agricultural cooperatives) are available up to 80% of the eligible project cost. Applications requesting $20,000 or less will likely have a higher priority for funding. Applications must be submitted by June 10, 2020.
 
Maryland Department of Commerce:  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.
 
If you are a Maryland-based business impacted by the Coronavirus with under 50 full- and part-time employees, or a Maryland manufacturer, check out the programs below to see if you qualify for assistance.
 
Maryland Heritage Areas Authority:  The Maryland Heritage Areas Authority has opened up an emergency grant for nonprofits within the boundaries of a Certified Heritage Area who may have been impacted and are in need of funding to  maintain operations. Applications will be accepted on a rolling basis, and all applications received by the first of the month will be reviewed as a group. The first deadline for applications is May 1, 2020. Click here to apply.
 
Maryland State Arts Council:  The Maryland State Arts Council has created an Emergency Grant Program for art organizations and independent artists. Information on the program can be found here.

 

Small Business Development Center (SBDC):  Maryland's Small Business Development Center held a COVID-19 Emergency Relief Funds webinar on March 24th. The SBDC has graciously permitted the posting of the slides to that webinar to our website. Please access the slide presentation here.U.S. Small Business Admininstration:
 

Miscellaneous Organizations:

 
National Artist Relief Fund:  The National Artist Relief Fund has a $10 million national emergency relief fund for artists and creative workers that will provide $5,000 no-strings-attached grants. It is intended for anyone who earns income from their creative or artistic practice and who has also been affected by COVID-19.