Coronavirus (COVID-19) Financial Relief Options Avaliable

Act Now! Financial Relief is available for Maryland businesses and non-profits, sole proprietorships, and independent contractors.

  • Secure much needed funds to protect your business
  • We guide you through the application process
  • Protect your employees by maintaining payroll

ACT NOW TO SECURE YOUR FUNDING

The U.S. Government and the State of Maryland have established programs to provide relief for small businesses suffering from the impact of the COVID-19 disaster.

Beneficiaries includes churches and other non-profits, partnerships, independent contractors, sole proprietors & small to medium sized businesses.

Program Eligibility

Four programs are available for most small businesses in Maryland seeking disaster relief loans and grants. Two programs are provided by the U.S. Small Business Administration, and two programs are provided by the State of Maryland. The U.S. Small Business Administration is offering the Paycheck Protection Program and Economic Injury Disaster Loans, and the State of Maryland is offering the Maryland Small Business COVID-19 Emergency Relief Loan and Maryland Small Business COVID-19 Emergency Grant.

A businesses eligibility depends on what kind of business is applying, as well which program under which the business is applying.

Limited Liability Companies, Corporations and Partnerships

corporate-380x415

For a business to be eligible for an SBA Paycheck Protection Program grant, the business must have existed on or prior to February 15, 2020 and have fewer than 500 employees. To be eligible for an Economic Injury Disaster Loan, the business must have suffered economic injury as a result of the COVID-19 disaster, the business existed on or prior to February 15, 2020 and the business must have fewer than 500 employees.

To be eligible for a Maryland Small Business COVID-19 Emergency Relief Loan, the business must be established in Maryland prior to March 9, 2020 and in good standing, the business must have employees on their payroll for whom they have had paid payroll taxes withheld, the business owner must have a minimum personal credit score of 575, and the business must have fewer than 50 employees.

To be eligible for a Maryland Small Business COVID-19 Emergency Grant, the business must have been established in Maryland prior to March 9, 2020 and in good standing, the business must have employees on its payroll for whom they have had payroll taxes withheld, the business must have annual revenue of $5 million or less, and the business is expected to seek longer term funding through its bank, SBA, or other source.

Non-Profits

For a non-profit to be eligible for an SBA Paycheck Protection Program grant, the sole proprietorship must have existed on or prior to February 15, 2020. To be eligible for an Economic Injury Disaster Loan, the non-profit must have suffered economic injury as a result of the COVID-19 disaster, and the non-profit must have existed on or prior to February 15, 2020.

Non-profits are not eligible for a Maryland Small Business COVID-19 Emergency Relief Loan.

For a non-profit to be eligible for a Maryland Small Business COVID-19 Emergency Grant, the non-profit must have been established in Maryland prior to March 9, 2020 and in good standing, the non-profit must have employees on its payroll for whom they have had payroll taxes withheld, the non-profit must have annual revenue of $5 million or less, and the non-profit is expected to seek longer term funding through its bank, SBA, or other source.

nonprofit-01-380x415

Sole Proprietorships

sole-proprietors-380x415

Sole proprietorships and independent contractors are eligible for the SBA Paycheck Protection Program, provided that the business existed on or prior to February 15, 2020 and can demonstrate that it suffered economic injury as the result of COVID-19. For a sole proprietorship or independent contractor to be eligible for an Economic Injury Disaster Loan, the business must have suffered economic injury as a result of the COVID-19 disaster and must have existed on or prior to February 15, 2020. Sole proprietorships and independent contractors do not qualify for the Maryland Small Business COVID-19 Emergency Relief Loan or Maryland Small Business COVID-19 Emergency Relief Grant programs.

Relief Programs

The U.S. Government and State of Maryland have established programs to provide relief for small businesses suffering from the impact of the COVID-19 disaster.

SBA Paycheck Protection Program

SBA Paycheck Protection Program

Under the SBA Paycheck Protection Program, the SBA will provide a maximum loan of $10 million with payments deferred for no less than 6 months and up to 1 year. If the business operated from February 15, 2019 – June 30, 2019, the maximum loan amount is equal to 250% of the businesses’ average monthly payroll costs. If the business did not operate between February 15, 2019 – June 30, 2019, the maximum loan amount is equal to 250% of the businesses’ average monthly payroll costs between January 1, 2020 and February 29, 2020.

SBA Economic Injury Disaster Loan

SBA Economic Injury Disaster Loan

Under the SBA Economic Injury Disaster Loan, a business can be approved for up to $2 million in disaster loans for up to a 30-year term, depending on ability to pay, and the interest rates are 3.75% interest rate for for-profit businesses and 2.75% for non-profits.

Maryland Small Business COVID-19 Emergency Grant

Maryland Small Business COVID-19 Emergency Grant

Under the Maryland Small Business COVID-19 Emergency Grant, the State of Maryland is providing up to $10,000.00, but not to exceed 3 months of cash operating expenses, for short-term business assistance.

Maryland Small Business COVID-19 Emergency Relief Loan

Maryland Small Business COVID-19 Emergency Relief Loan

Under the Maryland Small Business COVID-19 Emergency Relief Loan, a business can be approved for up to a $50,000 loan (not to exceed three months of cash operating expenses), with 0% interest for the first 12 months, and 2% interest for the remaining 36 months, as well as deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month.

The Application Process

In order to apply for an SBA Paycheck Protection Program grant and SBA Economic Injury Disaster Loan, the business must provide the following documentation:

  1. Completed SBA Application;
  2. A complete copy of the organization's most recent tax return OR a copy of the organization’s IRS tax-exempt certification and complete copies of the organization's three most recent years' "Statement of Activities";
  3. Schedule of Liabilities listing all fixed debts;
  4. IRS Form 4506T for each person owning 20% of more of the business, each general partner or managing member; and, for any owner who has greater than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management;
  1. Complete copy, including all schedules, of the most recent Federal income tax return for each principal owning 20 percent or more, each general partner or managing member, and each affiliate when any owner has more than 50 percent ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management;
  2. If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year;
  3. A current year-to-date profit-and-loss statement;
  4. Additional Filing Requirements (SBA Form 1368) providing monthly sales figures for will generally be required when requesting an increase in the amount of economic injury.

In order to apply for a Maryland Small Business COVID-19 Emergency Relief Loan or Grant, the business must provide:

  1. Completed Application;
  2. Evidence of business disruption;
  3. Financial Statements; and
  4. W-9 form.

Talk To An Attorney

Steiner Law Group

Steiner Law Group is a boutique law firm that assists Maryland families and businesses with disaster loan assistance, bankruptcy, and commercial litigation legal services.

We help individuals and business owners who wish to manage their debt more effectively.

Visit us at steinerlawgroup.com

Please call us at at (410) 670-7060 or contact us at [email protected]

Frequently Asked Questions

What programs are available for Maryland small businesses affected by COVID-19?

U.S. Small Business Administration Economic Disaster Loan Program

U.S. Small Business Administration Paycheck Protection Program

Maryland Small Business COVID-19 Emergency Relief Loan

Maryland Small Business COVID-19 Emergency Grant

What kinds of businesses are eligible for these programs?

Each program has its own requirements, but at least one of these programs are for businesses with under 500 or 50 employees, for-profit LLCs, Corporations and Partnerships, non-profit businesses and sole proprietorships.

What is the Application Process?

For both the SBA and State of Maryland programs, evidence of economic injury as a result of the COVID-19 disaster must be provided. The SBA also requires its own application, most recent tax return, schedule of liabilities, IRS Form 4506T for each person owning 20% of more of the business, each general partner or managing member; and, for any owner who has greater than 50 percent ownership in an affiliate business, current year-to-date profit & loss statement, and other documentations. Maryland requires its own application, Financial Statements and W-9 form.

Should I Hire an Attorney?

Deciding which program under which to apply is an important business decision, and an attorney can help a small business owner navigate the different options. An attorney can also help ensure that the correct documentation is provided to be quickly approved for the program of your choice, and an attorney can stay on top of the application and approval process so you can focus on your business.

Have more questions? "Please call us at at (410) 670-7060 or contact us at [email protected].