On March 5, 2020, Maryland Governor Larry Hogan proclaimed a state of emergency related to COVID-19. Pursuant to that proclamation, Governor Hogan and the Office of the Comptroller of Maryland (the “Comptroller”) have taken various actions to provide Maryland citizens with tax and reporting relief. Additionally, on March 23, 2020, Governor Hogan authorized $130 million in funding for the Maryland COVID-19 Emergency Relief Fund Programs for Small Businesses (the “Relief Fund”) and $7 million in funding for the COVID-19 Layoff Aversion Fund (the “Layoff Aversion Fund”). The Relief Fund provides small businesses impacted by the negative economic effects of COVID-19 with working capital to support payroll, rent, mortgage, utility or other similar expenses normally incurred during the ordinary course of business. The Layoff Aversion Fund is intended to prevent or minimize the duration of unemployment for Maryland workers. Here’s what else you need to know regarding available Maryland tax relief and the emergency relief fund programs:
Maryland has established a $75 million loan fund to provide small businesses with Relief Fund loans upon the following terms and conditions:
Maryland has also established a $50 million grant fund to provide small businesses with Relief Fund grants upon the following terms and conditions:
In order to be eligible for a Relief Fund loan or grant, Maryland businesses must meet the following qualifications:
The Relief Fund also includes a $5 million incentive program to help Maryland manufacturers produce personal protective equipment for hospitals and healthcare workers across the country. More details of this program are expected to be announced Friday, March 27, 2020.
Eligible Maryland businesses may apply to receive up to $50,000 in order to mitigate employee layoffs and adhere to “social distancing” policies established by health and public entities. Such uses of funds include purchasing remote access equipment and software to facilitate work from home, purchasing cleaning and sanitation supplies to allow businesses to maintain an on-site workforce, paying for additional liability insurance for businesses that convert to delivery business models and other strategies to reduce or eliminate the need for layoffs, subject to approval by the Maryland Department of Labor. Funds may not be used for hazard pay, employee wages other than those utilizing the Workshare Unemployment Insurance Program or support services such as childcare, transportation, lodging and meals.
Businesses eligible for assistance through the Layoff Aversion Fund:
We recommend eligible businesses apply for Relief Fund programs immediately. If you believe your business qualifies for a Relief Fund loan or grant, please contact the authors of this alert, who can provide additional information as well as support in completing an application.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.