Tax News

Coronavirus Economic Relief Loan Programs

BFJ Financial Group recognizes that the coronavirus has had an economic impact on all of our lives and we are committed to helping you work through these stressful times. As a starting point we would like to make you aware of several economic relief programs available to business owners:

  • Maryland Small Business COVID-19 Emergency Relief Loan Fund – Maryland has allocated $75 million to this loan fund that offers loans with no interest or principal payments due for the first 12 months. After 12 months the loan converts to a 36 month term loan with payments of principal and interest at an annual rate of 2%. See attachment for more details regarding this program.

 

  • Maryland Small Business COVID-19 Emergency Relief Grant Fund – Maryland has allocated $50 million to this grant fund that offers grants in amounts up to $10,000, not to exceed 3 months of documented cash operating expenses for the first quarter of 2020. See attachment for more details regarding this program.

 

  • SBA Economic Injury Disaster Loan Information – On March 19 Governor Hogan announced that the entire state of Maryland has received official designation for SBA assistance. The SBA provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment and inventory and business assets. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.

 

More information regarding SBA guidance and loan resources can be found here or contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail  disastercustomerservice@sba.gov

We are available to answer your questions or assist you regarding these programs.

We will continue to update you on these programs and other coronavirus-related economic issues in the coming days as more information becomes available.

 

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