Fast Facts – Loans from the Maryland Department of Commerce

Rosenberg Martin Greenberg LLP

On March 23, 2020, Governor Larry Hogan announced that the Maryland Department of Commerce will offer up to $75 million in loans to small businesses through the Maryland Small Business COVID-19 Emergency Relief Fund. Below are some fast facts businesses need to know about how to access these loans.

What Funds are Available:

  • $75 million loan fund

Who are the Funds Available to?

  • For-profit small businesses


  • 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.

Range of Loans:

  • Loans of up to $50,000 per business or nonprofit (not to exceed 3 months of cash operating expenses)

Loan Terms:

  • 0% interest for the first 12 months, and 2% interest for the remaining 36 months.
  • Deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month

Eligibility Requirements for Loans:

  • Business 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)
  • A minimum personal credit score of 575

Materials to be Provided:

  • 2 years of historical financial statements and most recent interim statement to benchmark revenue against (if available)
  • 6-month pro forma of established lost revenue or other documented loss evidence
  • Evidence of financial stress or disrupted operations

Suggested Evidence of Financial Stress or Disrupted Operations (not inclusive):

  • 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
  • Notice of disrupted supply network leading to a shortage of critical inventory or materials

Applications can be completed online here.

The forgoing are additional resources available to small business owners and nonprofits during this crisis in Maryland. For more information on the options through the U.S. Small Business Administration Economic Injury Disaster Loan (“EIDL”) program (a federal program), please click here.

More information will become available in the upcoming days and weeks.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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