The State of Maryland is offering two emergency funding programs for small businesses that have been affected by COVID-19.
Emergency Relief Loan Funds
The first program is an emergency relief loan fund offering loans up to $50,000, or three months of cash operating expenses, whichever is lower. Loan proceeds may be used for working capital needs such as payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses related to the ordinary course of business operations. General terms and conditions include the following:
- 0% for the first 12 months; 2% for the remaining 36 months.
- Deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month.
- Business must be established prior to March 9, 2020 and in good standing.
- Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e. W-2 employees).
- Two years of historical financial statements and most recent interim statement to benchmark revenue against (if available).
- Six month pro forma of estimated lost revenue or other documented loss evidence.
- Minimum personal credit score of 575.
- No collateral requirements.
Emergency Relief Grant Funds
The second program is an emergency relief grant fund offering grants up to $10,000, or three months cash operating expenses, whichever is lower. The grants are available to small businesses with W-2 employees and with annual revenues less than $5 million. As with the emergency loan fund, grant proceeds may be used to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses related to the ordinary course of business operations.