COVID-19

Financial Assistance & Taxes

 

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 Respo;nse 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.
 

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.
 

Internal Revenue Service:

 
Employee Retention Credit:  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.
 
Visit the IRS's coronavirus web page for additional information on economic impact payments and what benefits may be available to your business.
 

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 Small Business COVID-19 Emergency Relief Loan Fund:  As of 5:00 p.m. on April 7, 2020, applications will no longer be accepted. This $75 million loan fund (for for-profit businesses only) offers no interest or principal payments due for the first 12 months, then converts to a 36-month term loan of principal and interest payments, with an interest rate at 2% per annum. Sole proprietorships are eligible for this program. Applicants must have W-2 employees. 

Maryland Small Business COVID-19 Emergency Relief Grant Fund:  As of 5:00 p.m. on April 7, 2020, applications will no longer be accepted. This $50 million grant program for businesses and non-profits offers grant amounts up to $10,000, not to exceed 3 months of demonstrated cash operating expenses for the first quarter of 2020. Sole proprietorships are eligible for this program. Applicants must have W-2 employees. Learn more.
 
Maryland COVID-19 Emergency Relief Manufacturing Fund:  This $5 million incentive program helps Maryland manufacturers to produce personal protective equipment (PPE) that is urgently needed by hospitals and health-care workers across the country. More details are expected to be announced by Friday, March 27, 2020. Learn more.
 

Maryland Department of Labor:

 
COVID-19 Layoff Aversion Fund:  The Maryland Department of Labor is no longer accepting COVID-19 Layoff Aversion Fund applications. If funds remain after the Department has processed the applications it has received, additional applications may be accepted at that time. https://www.dllr.state.md.us/employment/covidlafund.shtml.
 
Governor Larry Hogan and the Maryland Department of Labor have launched the new COVID-19 Layoff Aversion Fund, which is designed to support businesses undergoing economic stresses due to the pandemic by preventing or minimizing the duration of unemployment resulting from layoffs. The award (up to $50,000 per applicant), will be a quick deployable benefit and customizable to the specific needs of your business to minimize the need for layoffs. efit and customizable to the specific needs of your business to minimize the need for layoffs. 
 
Sole proprietorships are not eligible for this program.
 
Application Filing Deadline: December 21, 2020
 
Labor is accepting grant applications from small businesses for awards from now through 30 days after the State of Emergency ends (subject to funding availability).
 
 
For additional information, please click 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:
 

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. Click here for additional information on loan requirements and to access the application. Application Deadline:  December 21, 2020.

On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

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. Link to the application: https://covid19relief.sba.gov/#/
 
The entire $10,000 Advance will be forgiven, even if you decide later not to accept the Economic Injury Disaster Loan. 
 
Sole proprietorships are eligible for this program.
 
 
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.
 
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.