March 26, 2020
Fast Facts – Grants from the Maryland Department of Commerce
On March 23, 2020, Governor Larry Hogan announced that the Maryland Department of Commerce will offer up to $50 million in grants to small businesses and nonprofits through the Maryland Small Business COVID-19 Emergency Relief Fund. Below are some fast facts businesses and nonprofits need to know about how to access these grants.
What funds are available?
- $50 million grant fund, with $1 million dedicated to nonprofits
Who are the funds available to?
- Both for-profit small businesses and nonprofits are eligible to receive grant funds.
What is the purpose of the grant funds?
- To provide working capital to be used for payroll, rent, fixed-debt payments, utility expenses and other mission critical cash operating costs.
- To provide interim relief complementing actions with its bank, business interruption insurance, and financial partners.
How much money is available for each business?
- Grants of up to $10,000 per business or nonprofit (not to exceed 3 months of cash operating expenses)
What businesses are eligible for grant funding?
- Businesses and nonprofits with under 50 full-time and part-time employees
- Business must be established prior to March 9, 2020.
- Businesses must be in good standing with the State of Maryland.
- Businesses must have employees on their payroll for whom they have had payroll taxes withheld (i.e. W-2 employees).
- Annual revenue of the business or nonprofit may not exceed $5 million as evidenced by a financial statement or other financial documentation.
What materials must be provided with the grant application?
- Financial statements or other financial documentation indicating the annual revenue of the business or nonprofit does not exceed $5 million; and
- Evidence of financial stress or disrupted operations.
What type of evidence of financial stress or disrupted operations may be submitted?
The following is a non-exclusive list of items that may evidence financial stress or disrupted operations:
- Notices from tenants closing operations and not paying rent caused by loss of income;
- Notice of inability to pay rent or make loan payments due to reduced sales and/or suspended operations;
- Increased costs related to COVID-19 prevention measures; and
- Notice of disrupted supply network leading to shortage of critical inventory or materials.
More information will become available in the upcoming days and weeks. Rosenberg Martin Greenberg will continue to post material relevant to businesses on our COVID-19 Resource Center as the situation evolves. Until then, stay safe and, if you have any questions or need assistance during the grant application process, please give us a call.