In response to the Coronavirus (COVID-19 pandemic), there are state programs currently available to assist impacted businesses, and several more on the way. Here is what is currently available in the Washington, D.C. Metropolitan Area.

 

Maryland

Maryland Small Business COVID-19 Emergency Relief Loan Fund offers loans up to $50,000 for working capital to support payroll, rent, mortgage, utility or similar ordinary operating expenses. Here are some of the requirements:

  • Business established prior to March 9, 2020 and in current good standing
  • Business with under 50 full- and part-time employees
  • Business is a “for profit” company (i.e., non-profit entities are not eligible for this program)
  • Employees on payroll (i.e., W-2 employees)
  • Two years of historical financial statements and most recent interim statement (if available)
  • Six months pro forma of estimated lost revenue or other documented loss evidence
  • Minimum personal credit score of 575
    Click here to apply.

Maryland Small Business COVID-19 Emergency Relief Grant Fund offers grants of up to $10,000 for working capital to support payroll, rent, mortgage, utility or similar ordinary operating expenses. Here are some of the requirements:

  • Business established prior to March 9,2020 and in current good standing
  • Business with under 50 full- and part-time employees
  • Businesses and nonprofits may apply
  • Employees on payroll (i.e., W-2 employees)
  • Annual revenues not to exceed $5 million (evidence must be provided in the form of two years’ financial statements or other documentation)
  • Must demonstrate financial stress or disrupted operations including but not limited to:
    •  – Tenants closing operations and not paying rent
    • – Inability to make loan payments due to reduced sales, suspended operations
    • – Increased costs due to COVID-19 prevention measures
    • – Disrupted supply network leading to shortage of critical inventory or materials
    • – Other circumstances which will be reviewed on a case by case basis
    • Click here to apply.

COVID-19 Layoff Aversion Fund offers grants of up to $50,000. Larger amounts may be considered if extenuating circumstances warrant for:

  • Cost of purchasing remote access equipment to allow employees to work remotely
  • Cost of purchasing software or programs to enable employees to work from home
  • Cleaning/sanitation services to enable business to keep employees on site (if deep cleaning is required due to an exposure occurrence)
  • Support of the Work Share Unemployment Insurance Program
  • Liability insurance for restaurants that convert to delivery under emergency circumstances
  • Training or professional development for employees to avoid layoffs
  • Supporting businesses that are using the Unemployment Insurance Work Sharing Program (other wages or hazard pay may not be paid through the grant)

Qualifying Businesses:

  • Business with 500 or fewer employees based within the State
  • Up-to-date with Unemployment Insurance taxes and in good standing with the State
  • Demonstrate need for layoff aversion support due to the impacts of COVID-19
  • Commitment to keep employees on staff through 45 calendar days from the date of the grant award
    Click here to apply.

Virginia

Virginia has not set-up state-wide relief funds to date. However, these jurisdictions have relief available.

Northern Virginia COVID-19 Rapid Response offers grants up to $25,000 for businesses with employees located in Northern Virginia (Fairfax, Loudoun, and Prince William counties and the cities of Fairfax, Falls Church, Manassas and Manassas Park) that has 250 or fewer employees.

Layoff aversion funds could be used for innovative strategies to maintain business operations, such as:

  • a cleaning/sanitization service.
  • the purchase of software/programs that employees would need to use from home to support their work.
  • the purchase of remote access supplies, including laptop computers and/or smart phones, which the employees would need to use from home to support their work.
  • other innovative methods that keep businesses open and workers employed

Funding cannot be used for employee payroll and fringe benefit expenses. Click here to apply.

Spotsylvania Economic Development has been awarded a $87,314 grant from the Commonwealth of Virginia to assist small businesses (fewer than 250 at a site) with certain costs related to the COVID-19 crisis that might help them meet certain needs and/or divert expenses in other areas as a form of assistance.

Examples of uses for funding include:

  • Paying for cleaning services so companies can stay open
  • Paying for cleaning supplies
  • Purchasing items that can assist employees in teleworking
  • Other COVID-19 related items can be considered on a case-by-case basis
  • Note that “equipment” with a per unit value over $5,000 is not allowed; nor are wage reimbursements for employees
    Click here to apply.

The Shenandoah Valley Workforce Development Board has received Rapid Response funding from the Commonwealth of Virginia to assist small businesses (fewer than 250 at a site) with certain costs related to the COVID-19 crisis that might help them meet certain needs and/or divert expenses in other areas as a form of assistance. Click here to apply.

 

District of Columbia

The Council of the District of Columbia is investing $25 million in the COVID-19 Recovery Effort and the DC Small Business Recovery Microgrants Program, which will be housed in the Office of the Deputy Mayor for Planning and Economic Development.

Pursuant to the “COVID-19 Response Emergency Amendment Act of 2020” effective March 17, 2020 (D.C. Act 23-247), 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.

**Application closes at 6:00 pm on Tuesday, March 31st**  Click here to apply.

Click here for government resources with the latest information to consider.

We will continue to update you as we get more information on Coronavirus legislation and guidance that may impact you. If you have more questions contact an MCB Advisor at 703-218-3600 or click here. 

The information contained within this communication is provided for informational purposes only and is not intended as a substitute for obtaining accounting, tax, or financial advice from a certified professional. Continue to check back here for the most up to date tax information and changes in response to Coronavirus.

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