Steiner Law Group is pleased to announce that we are assisting our new and existing small business clients seek loans and grants through both the U.S. Small Business Administration and the State of Maryland. Both the U.S. Small Business Administration and State of Maryland have quickly instituted several programs that aim to keep small businesses running during the COVID-19 disaster, which caused small businesses to come to a dramatic halt. Steiner Law Group is available to help you decide which program is right for you, and walk you through the process of obtaining the right loan or grant for your small business that suits the needs of your business.
The State of Maryland created several programs to help keep small businesses operating during the COVID-19 disaster. All of the programs are provided through the Maryland Department of Commerce, which has been authorized to disburse $130 million in loans and grant funding.
Maryland Small Business COVID-19 Emergency Relief Loan Fund.
The Maryland loan program will loan up to $50,000.00 to Maryland for-profit businesses impacted by the COVID-19 disaster. The terms of these 4-year loans are 0% interest for the first 12 months, and 2% interest for the remaining 36 months, with deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month.
In order to qualify, the business must have fewer than 50 employees, been established prior to March 9, 2020, and the business must have employees on its payroll for whom it has withheld payroll taxes. The business must also demonstrate that it has been affected by COVID-19. Independent contractors and non-profits do not qualify under this program.
Maryland Small Business COVID-19 Emergency Relief Loan Grant.
The Maryland Grant program provides up to $10,000.00 for Maryland businesses and nonprofits impacted by the COVID-19 disaster. The requirements are similar to the loan program: the business must have fewer than 50 employees, been established prior to March 9, 2020, and the business must have employees on its payroll for whom it has withheld payroll taxes. The business must also demonstrate that it has been affected by COVID-19. Independent contractors do not qualify under this program; however, non-profits do qualify.
U.S. Small Business Administration Programs
U.S. Small Business Administration Paycheck Protection Program.
The U.S. Small Business Administration Paycheck Protection Program has been authorized to direct $349 billion in funding to small businesses affected by COVID-19. The Paycheck Protection Program provides an incentive for small businesses to keep its employees on payroll by providing up to a $10 million loan for payroll and certain other expenses. If all employees are kept on payroll for eight weeks, the SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities up to 100% of the loan.
All kinds of businesses are eligible to apply for this program, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, as long as the business has 500 or fewer employees.
U.S. Small Business Administration Economic Injury Disaster Loan (“EIDL”).
Small business owners can also apply for an Economic Injury Disaster Loan advance of up to $10,000.00. This program provides loans of up to $2 million which can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will be made available within three days of a successful application, and this loan advance will not have to be repaid.
These loans provide up to 30-year terms, with interest of 3.75% for for-profit businesses and 2.75% for non-profit businesses. Unlike the Maryland programs, these loans are available to sole-proprietorships and independent contractors.
The COVID-19 disaster has dramatically halted the United States economy, including businesses throughout the State of Maryland. Both the U.S. Small Business Administration and the State of Maryland Department of Commerce have set up programs that provide loans and grants to small businesses to help small businesses keep their employees and to weather the COVID-19 storm. As a business owner, it is important to understand the nuances of the different programs that are available in order apply for the program that best fits your business needs. Steiner Law Group is proud to offer these services to our clients, and will bring the same level of convenience, responsiveness, and thoroughness that we provide to all of our clients. If you are a business owner and are not sure which program best suits your needs, please call Steiner Law Group at (410) 670-7060.