PRESENTED BY GREATER BALTIMORE BLACK CHAMBER OF COMMERCE (Special Thanks to Debra Keller-Greene, Chairwoman, GBBCC)
FEDERAL AND STATE COVID-19 ECONOMIC DISRUPTION RESOURCES FOR SMALL BUSINESSES
TELECONFERENCE – MARCH 31, 2020, 2:00 PM
SPONSORED BY BALTIMORE DEVELOPMENT CORPORATION AND M&T BANK
Baltimore City Mayor’s Office takes the initiative to connect COVID-19 funding resources available to small businesses. BDC and M&T Bank sponsor a teleconference to with Federal and State officials to provide stakeholders an overview of federal and state small business COVID-19 economic disruption resources and Guidelines under the CARES (Coronavirus Aid, Relief, and Economic Security) Act.
Attending: Mayor Jack Young; Colin Torbin, BDC; Senator Ben Cardin, Member, Senate Small Business and Entrepreneurship Committee; Stephen Umberger, District Director, US Small Business Administration Baltimore District Office; Kelly Schultz, Maryland Department of Commerce.
Attending Stakeholder were not disclosed and participated via Q&A Chat.
Highlights of Teleconference:
The $2 trillion federally funded COVID-19 Economic Injury Disaster Loans (EIDL) was recently allocated under the CARES Act to address the impact on small businesses resulting from this public health crisis in the US. Senator Ben Cardin and Stephen Umberger of SBA were intricately involved in structuring the COVID-19 Small Business (EIDL) Economic stimulus package to be administered through the SBA.
Maryland’s Department of Commerce also administers a small business economic stimulus program that was in place prior to the CARES Act, which re-opens the door to COVID-19 small businesses funding resources across the United States. The purpose of the teleconference was to ensure that Baltimore City small business stakeholders have first-hand information on how to access resources.
Tools Administered Under the Maryland Department of Commerce ($175 Million)
The COVID-19 Emergency Relief Loan Fund is being administered by the Maryland Department of Commerce. It offers $75 Million of working capital to assist for-profit small businesses with less than 50 full- and part-time employees that are experiencing disrupted operations due to COVID-19. Eligible uses include working capital to support 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:
Tools Administered Under COVID-19 Federal Government SBA Loan and Grant Programs
($377 billion dollars).
Words of Caution
IRS Employee Retention (not part of the SBA Program) – May receive 50% tax credit up to $5,000 from IRS for retention of employees. This is an alternative to the Pay Protection Resource offered by SBA. Businesses can only choose one Pay Protection option/ not both. No additional resources were provided for the IRS Employee Retention. Businesses should consult with their Tax Accountant.
Question #1: Do programs help sole proprietors/Individual business owners?
Answer: Kelly Schultz, Secretary of Commerce: the two state programs do not cover sole-proprietors/individual businesses. You must have employees to qualify.
Answer: Stephen Umberger, SBA: All EIDL programs include sole-proprietors/self-employed, etc.
Question #2: What is the turn-around time for approved applications?
Answer: – The normal SBA timeframe is 21 days. The goal is 1 week because loan requirements have been relaxed
Question: #3: What is the application deadline?
Answer: Dept. of Commerce – End dates are not available. The CARES Act re-opens the door to state small businesses.
Answer: SBA – No existing deadline for EIDL
Question #4: For the Federal vs. State programs, which programs can be combined?
Answer: SBA: Every day is different and rules can change but there are no changes anticipated to preclude anyone from applying to more than one program. The ceiling on amount a business can apply for may change, but there are currently no restrictions.
Department of Commerce funds are intended to provide interim relief, complementing actions with your bank, business interruption insurance provider, and other financial partners. Use the links below to view more information and to access the online application.
COVID-19 Emergency Relief Loan Fund Application (UPDATED LINK)