Are you a business owner or independent contractor? Have you been effected by the COVID-19 virus and subsequent executive order to shut down or scale back your business? Are you confused and frustrated on what relief options are available to you and how you can get help?
Watch my interview with Joanna Kouvaras, tax consultant and CPA as we discuss the relief programs and tax credits that are available to business owners and independent contractors here in Maryland.
- Maryland Grant
- Maryland Loan Program
- SBA Economic Injury Disaster Loan (EIDL)
- Payroll Protection Program Loan (PPPL)
- Payroll tax credits of up to 50% of wages, maximum of $5000/employee
- Payroll tax credits for amounts paid to workers with COVID or required to self quarantine due to a family member’s diagnosis
Maryland Grant and Maryland Loan Program
Requires companies to have employees.
- A $10,00 grant is available for Maryland companies to help cover expenses for 3 months
- Annual revenues do not exceed $5,000,000
- Can be use for rent, utilities, payroll
- $50,000 no interest loan for 12 months than converts to a 36 month 2% fixed monthly payments; applicant must have a credit score of at least 575
- 2 years financial statements and current interims must be submitted along with how the business has been impacted by this crisis, i.e. lost revenue, reduced revenues, lost business, etc
- Simple application on Maryland commerce website
SBA Economic Injury Disaster Loan (EIDL)
- Application on SBA website.
- Can apply online for an immediate $10,000 working capital grant
- Must have under 500 employees
- Loans up to $1,000,000 available, 3.75% interest rate
- Simple, easy 2 page application.
Payroll Protection Program Loan (PPPL)
- Eligible up to $10,000,000; 1% interest rate for up to 2 years, which is the max loan term
- Comes with a forgiveness feature
- Max amount of loan is 2.5 times your average monthly payroll for the past 12 months.
- Must be used for payroll, rent, utilities including phone and internet, interest payments on mortgage – beginning on Feb 15, 2020
Click here to download the NFIB Side-by-Side comparison of the EIDL and PPPL programs.