Maryland Gov. Larry Hogan on Monday announced an emergency relief fund to provide loans for local businesses impacted by COVID-19.
As part of the $175 million program, the Maryland Department of Commerce will provide access to loan and grant funding to assist businesses that are struggling amid the social distancing measures that has led many businesses to cut back or stop operating.
The announcement came during the same press conference where Hogan announced that all “non-essential” businesses will be ordered to close as of 5 p.m. Monday. This comes as the state increases social distancing measures designed to stop the spread of the new coronavirus.
“I want to thank al of the small businesses who had to close their doors during these uncertain times. I can assure you that these actions, while incredibly difficult financially, will save the lives of thousands of your fellow Marylanders,” Hogan said. “We will have your backs in the weeks ahead, and we will do everything we can to help you get back on your feet and to help all of your employees recover.”
Here’s a look at the business loan programs that the state is rolling out:
The $75 million loan fund from the Department of Commerce is designed to provide interim relief for impacted for-profit businesses of 50 employees or less. It will provide loans of up to $50,000, not to exceed three months of cash operating expenses.
The $50 million fund will provide grants of up to $10,000 for businesses and nonprofits with up to 50 employees. It’s designed to provide working capital to those impacted. The funds are not to exceed three months of cash operating expenses.
Through the Maryland Department of Labor, the state is making funds available to help businesses prevent or minimize unemployment that results from the pandemic. The $7 million fund will provide up to $50,000 to applicants which can provide support for technology that would allow employees to work from home, cleaning and sanitization costs or training and professional development opportunities.
Maryland COVID-19 Emergency Relief Manufacturing Fund
A $5 million fund is being developed to provide incentives to small businesses who manufacture masks, personal protective equipment and other needed supplies for healthcare workers. More details are expected by March 27.
Last week, Hogan also announced that Maryland was officially designated by the U.S. Small Business Administration for its Economic Injury Disaster Loan program. That means Maryland businesses are eligible to apply for the program, which provides low-interest federal loans for businesses impacted by the pandemic. To receive the designation, the state was first required to show five businesses that were impacted.-30-
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