Financial Resources for Businesses Affected by COVID – 19

Many small businesses and nonprofit organizations have been financially impacted as a direct result of the spread of COVID-19 (Coronavirus). In an effort to help business owners and nonprofit executives find financial relief and navigate through the constantly changing coronavirus pandemic, we have compiled a running list of financial assistance resources available in the Washington Metropolitan area.

U.S. Small Business Administration

The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses and private nonprofit organizations of any size. In designated states and territories, an entity can qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses.

SBA assistance is available in declared disaster zones, including in the states of Maryland, Virginia, and the District of Columbia. To learn more about the Coronavirus Preparedness and Response Supplemental Appropriations Act and the Economic Injury Disaster Loan, visit: https://disasterloan.sba.gov/ela/

State of Maryland

The Maryland Department of Commerce is offering three business assistance programs:

Maryland Small Business COVID-19 Emergency Relief Loan Fund – This $75 million loan fund offers no interest or principal payments for the first 12 months, then converts to a 36-month term loan of principal and interest payments, with an interest rate at 2% per annum. To apply for the Maryland Small Business COVID-19 Emergency Relief Loan Fund, click here.

Maryland Small Business COVID-19 Emergency Relief Grant Fund – This $50 million grant program offers grant amounts up to $10,000, not to exceed 3 months of demonstrated cash operating expenses for the first quarter of 2020. To apply for the Emergency Relief Grant Fund, click here.

Maryland COVID-19 Emergency Relief Manufacturing Fund – This $5 million incentive program helps Maryland manufacturers produce personal protective equipment (PPE) that is urgently needed by hospitals and health-care workers across the country. For more information, click here.

County Business Assistance

Montgomery County
Montgomery County is contributing up to $26 million in grants for local small businesses with 100 employees and fewer that are affected by the coronavirus outbreak. The County’s new Public Health Emergency Grant Program will allow for businesses to apply and earn up to $75,000 to use towards employee salaries and debt payments. Businesses will also be able to apply for microgrants of up to $2,500 to purchase teleworking equipment.

An additional $10 million will be made available to 6 local hospitals in need of new equipment and more staff to cope with the crisis.

Prince George’s County
Prince George’s(PG) County will offer $15 million in grants and loans to impacted local businesses. Small businesses can now apply for a loan of up to $100,000 at a fixed rate of 3.75 % and may receive grants of up to $10,000 to keep unemployment numbers from rising. The County is also making $900,000 available for nonprofit organizations. To learn more about Prince George’s County COVID19 Business Relief Fund, click here.

Commonwealth of Virginia

The Governor of Virginia authorized rapid response funding through the Workforce Innovation and Opportunity Act for eligible employers to remain open during Novel coronavirus outbreak. The funds of up to $25,000 are awarded to businesses with 250 and fewer employees located in the Fairfax, Loudoun, and Prince William counties and the cities of Fairfax, Falls Church, Manassas, and Manassas Park.

Interested businesses can fill out the COVID-19 Rapid Response funding application and budget spreadsheet, and Email them to Seema Jain, VP of Operations.

These funds are to be used towards maintaining business operations and keeping workers employed, and not to be used towards employee payroll and benefit expenses.

County Business Assistance

Arlington County

Arlington County has announced its Small Business Emergency Giving Resiliency Assets Near Term (GRANT) Program to help small businesses and nonprofits in the county. The GRANT Program would provide grants of up to $10,000 to businesses and nonprofits with less than 50 employees who are registered and are in good standing with the county and can demonstrate revenue losses of 35%.

Click here to learn more about the GRANT program and the selection process.

District of Columbia

The Mayor and the Council of the District of Columbia are investing $25 million in the COVID-19 Recovery Effort and the DC Small Business Recovery Microgrants Program. The DC Small Business Recovery Microgrants Program will offer grants to small, local businesses, independent contractors, self-employed individuals, and nonprofits to meet their short-term financial needs. The grant can cover employee wages and benefits, including fringe benefits associated with employment, such as health insurance, accounts payable, fixed costs, inventory, rent, and utilities. Please click here for more information.

Nonprofit Information

While many of the relief programs mentioned above apply to nonprofit organizations as well, here are additional resources available on nonprofit-specific programs. We encourage you to access these resources to best prepare yourself and your organization.

We will continue to monitor the economic developments and future incentives in real-time and will be posting and sharing our updates with you. In the meantime, should you have any questions, please feel free to reach out to a member of the Snyder Cohn team or contact us via Email.

Sources

https://www.sba.gov
https://www.maryland.gov
https://www.montgomerycountymd.gov
https://www.pgcedc.com/
https://coronavirus.dc.gov
https://www.virginia.gov/coronavirus-updates/