- 08 Apr
Several Maryland counties are offering residents access to loan or grants programs for small businesses impacted by the coronavirus (COVID-19) shutdown.
The Prince George's County COVID19 Business Relief Fund, which totals $15 million, can be used to support cash operating expenses including payroll, suppliers, rent, fixed debt payments and other business-critical cash operating costs. The loans, not to exceed $100,000, carry a fixed interest rate of 3.75% with no principal or interest payments for 12 months.
The loans are for county-based small businesses with a principal business office or location physically located in Prince George's County. Businesses must meet the U.S. Small Business Administration definition of a small business and must be a for-profit entity.
There is no application fee, and the loan application will be available from April 13-May 15.
Prince George's County also offers grants to provide working capital for county-based small businesses whose operations have been interrupted by COVID-19. The $2.5 million program offers up to $10,000 for business with more than 10 employees and up to $5,000 for business with fewer than 10 employees.
The county also has a cash card program for hourly workers' immediate needs such as utilities, gas, and food. Employ PG, in partnership with the Greater Washington Community Foundation, has launched the Prince George's County COVID-19 Hourly Employee Relief Fund under which county residents who have been laid off due to the COVID-19 pandemic are eligible for a $200 EPG Visa Cash Card.
Applications are open at employpgedge.com. Priority will be given to Prince George's County residents who were earning $19 or less per hour prior to their layoff.
Carroll County has established the $500,000 Carroll County Small Business COVID-19 Emergency Relief Fund to provide working capital for county small businesses with disrupted operations due to COVID-19. The program offers $1,250 grants to businesses established prior to March 5, 2020, that have between two and 25 employees.
Eligible uses for the grant funds include working capital to support payroll, rent, mortgage payments, utility expenses or other similar expense that occur in the ordinary course of business operations.
The Montgomery County Council has approved $20 million in emergency funds for grants to small businesses and non-profits impacted by COVID-19. County officials said they are currently developing an application process and will post the application on its website when it becomes available. The county website can be accessed here.
The Cecil County COVID-19 Small Business Emergency Micro Grant Program is for businesses hit hardest by virus disruption.
The $200,000 program provides grants up to $10,000 to businesses that have realized a "significant hardship." It is open to businesses that employed 25 or less full-time persons prior to March 15, 2020; are in good standing with the state of Maryland and Cecil County; and demonstrate an adverse economic impact as a result of the COVID-19 outbreak and associated state of emergency in the state. Grants may be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business.
The county also offers Cecil Catalyst COVID-19 Loan Program that offers amounts of $5,000 to $75,000, but officials said requests ranging from $5,000 to $15,000 are encouraged at this time. The loans may be used for working capital to support payroll expenses, rent and mortgage payments, materials, utility expenses, or other similar expenses that occur in the ordinary course of business.
The interest rate is fixed at 3% for the term of repayment with interest-only payments during year one. Collateral guarantee loans of $15,000 or less will be unsecured, while loans greater than $15,000 may be unsecured or secured at the discretion of a loan review committee.
Applicants for any programs are urged to consult with tax advisers to determine eligibilty.
On the state level in Maryland, the Department of Commerce announced it is no longer accepting new applications for its COVID-19 Small Business Relief Grant and Loan programs. The department said all applications that have been submitted are currently being reviewed in the order received.
The MTHA will continue to provide updates on the state programs as well as any other counties that may offer COVID-19 loan or grant assistance.