Updated: November 3, 2020 at 4:00 PM
The COVID-19 pandemic has rapidly evolved into an unprecedented time of concern and financial strain for individuals and businesses alike.
With gatherings being prohibited and non-life sustaining businesses being closed, the first and foremost priority at this time is protecting everyone’s health and safety. However, Pennsylvania and Maryland government officials are also deeply concerned about the economic impact that event postponements and business closures will have on small businesses and nonprofits in the months to come.
This post covers:
Low-Interest SBA Loans Available for Small Businesses and Eligible Nonprofits
On March 19, 2020, Pennsylvania Governor Tom Wolf and Maryland Governor Larry Hogan announced that small businesses and eligible nonprofit organizations impacted by the coronavirus in Pennsylvania and Maryland will be able to apply for low-interest loans through the U.S. Small Business Administration (SBA).
SBA’s Economic Injury Disaster Loans can provide up to $2 million to help small businesses overcome their temporary loss of revenue due to coronavirus-related event postponements and business closures. The deadline to apply is December 21, 2020.
Click here to read more.
Maryland-Specific Funding Availability
According to the Maryland Department of Commerce website:
NOTE: As of 5 p.m. on April 6, Commerce is no longer accepting new applications for its COVID-19 Relief Grant and Loan Programs. All applications that have been submitted are currently being reviewed in the order received. If you have already started an application in the program system, it must be completed and submitted by 5 p.m. on April 7, 2020 in order to be considered.
The Maryland COVID-19 Emergency Relief Manufacturing Fund is still available at this time.
On March 23, 2020, Governor Larry Hogan announced new programs for business relief. Below are options that Maryland businesses have:
- Maryland Small Business COVID-19 Emergency Relief Program – This gives for-profit businesses with less than 50 employees the option of a loan, up to $50,000, which offers no interest or principal payments due for the first 12 months.
- Maryland Small Business COVID-19 Emergency Relief Grant Fund – Businesses and nonprofits with less than 50 employees are eligible for grants up to $10,000.
- Maryland COVID-19 Emergency Relief Manufacturing Fund – This incentive program is aimed at manufacturers to help produce personal protective equipment (PPE) that is needed by hospitals and health-care workers.
- COVID-19 Layoff Aversion Fund – As of October 28, 2020, additional funding has been made available through the COVID-19 Layoff Aversion Fund. Click here for more info on the BSSF Blog.
For more information, click here.
Pennsylvania-Specific Funding Availability
Commonwealth Financing Authority Approves Funding to Help Small Businesses in Pennsylvania
According to the Pennsylvania Department of Community and Economic Development (DCED) website, the COVID-19 Working Capital Access Program is now closed.
On March 18, 2020, the Commonwealth Financing Authority (CFA) authorized the transfer of $40 million to the Pennsylvania Industrial Development Authority (PIDA) in an effort to provide relief to Pennsylvania small businesses impacted by COVID-19.
These funds will be combined with existing funds in PIDA’s Small Business First Program to provide $60 million worth of zero interest loans for small businesses (businesses with 100 or fewer full time employees) as part of the new COVID-19 Working Capital Access Program (CWCA).
Zero interest loans of up to $100,000 will be available to small businesses as working capital. PIDA is still developing detailed guidelines for the program and the application process, but did share that there will be no application fees, in addition to no payments and no interest during the first year of the loan.
More information regarding programs administered by the CFA can be found on the Pennsylvania Department of Community & Economic Development website.
For regular updates and resources regarding the COVID-19 pandemic, please visit our COVID-19 Resource Center.
Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.