SALISBURY, Md. — To help Maryland businesses struggling with the novel coronavirus pandemic Gov. Larry Hogan announced a $175 million relief package Monday.

Maryland will immediately implement more than $175 million in financial relief programs to help Maryland's 175,000 business, as well as employees and those who otherwise have been impacted by COVID-19 financially, Hogan said.

These programs will join the federal disaster relief program available through the U.S. Small Business Administration that was extended to Maryland businesses Thursday.

"This will help bring together resources from two of our key state agencies the Maryland Department of Commerce and the Maryland Department of Labor to help hard-pressed Marylanders and small businesses get through this difficult period," Hogan said.

Here's what you need to know about the different relief programs Hogan introduced Monday in addition to the federal option available:

State relief programs

In his Monday press conference, Hogan announced the immediate implementation of several state relief programs including:

$75 million Maryland Small Business COVID-19 Relief Loan Fund

$50 million Maryland Small Business COVID-19 Relief Grant Fund

$5 million incentive program for Maryland businesses

$7 million COVID-19 Layoff Aversion Program

An additional $40 million in relief funding through existing state programs

The programs will be administered by the Maryland Department of Commerce and Department of Labor, Hogan said.

Maryland Department of Commerce

The $75 million Maryland Small Business COVID-19 Relief Loan Program will be available to companies with 50 or fewer employees who have lost revenue because of COVID-19, Hogan said.

Businesses who are eligible can apply for up to $50,000 in low-interest loans, said Kelly Schulz, secretary of the Maryland Department of Commerce. The state will also offer businesses a 0% interest rate on the loans for the first 12 months.

"These loans can be used to cover the same sort of regular operating costs such as payroll, rent, utilities, etc.," Schulz said.

Businesses can apply for the Maryland Small Business COVID-19 Relief Loan Program through the Department of Commerce’s website.

The state is also offering Maryland businesses the ability to apply for state grants through the Maryland Small Business COVID-19 Relief Grant Fund, Hogan said. The smaller $50 million program will give businesses “direct immediate grants” of up to $10,000.

This program is also directed at businesses with 50 or fewer employees, Schulz said.

An additional $1 million will be set aside for nonprofit organizations, according to a press release from Hogan's office.

"These grants can provide working capital to cover payroll, rent or mortgage payments, utilities or other expenses that are incurred during ordinary operations," Schulz said.

Applications for the Maryland Small Business COVID-19 Relief Grant Fund can also be found at the Department of Commerce’s website.

Maryland leaders are also introducing a $5 million incentive program to businesses who begin producing critically-needed supplies.

"We're also immediately developing a $5 million fund to provide incentives to Maryland small businesses to manufacture masks, personal protective equipment and other supplies to immediately help meet the critical demands of our healthcare workers," Hogan said.

The program is called the Maryland COVID-19 Emergency Relief Manufacturing Fund, Schulz said. Through the program the state will either purchase the critically-needed equipment or connect businesses to buyers.

In addition, Schulz asked that any business with “important supplies” contact the state at resource.mema@maryland.gov if its willing to sell the equipment.

For Salisbury businesses particularly Mayor Jake Day said the Salisbury Chamber of Commerce and Greater Salisbury Committee will distribute the governor’s $175 million relief package.

Maryland Department of Labor

The Maryland Department of Labor will oversee the governor’s new COVID-19 Layoff Aversion Fund, Hogan said. The $7 million fund will provide assistance to businesses to help them retain their staffs during the COVID-19 pandemic.

"Maryland small businesses can apply for up to $50,000 in flexible funding to help continue operations and keep their employees on the payroll," Hogan said.

Maryland Secretary of Labor Tiffany Robinson said businesses can use these programs for many different expenses such as sanitizing workspaces if employees have to come to work or purchasing teleworking equipment if employees can work from home.

Businesses who apply to the program will hear back within two business days, Robinson said. Department of Labor staff is also available to help businesses with applications if needed.

Applications for the COVID-19 Layoff Aversion Fund can be found at the Department of Labor’s website.

The Department of Labor is also maintaining the state’s Unemployment Insurance Program to assist employers and employees effected by COVID-19, Robinson said.

The state has increased its assistance to the program to provide paid benefits to employees quicker by waving the waiting period, Robinson said. The state has also expanded the eligibility for the program.

"Maryland is allowing workers who have not been terminated to collect unemployment insurance if their employer has been closed due to COVID-19, if they've been quarantined or if they're caring for a family member who has been quarantined," Robinson said.

Unemployment insurance can also be found at the Department of Labor’s website.

Federal government assistance

In addition to state assistance, the state of Maryland received a statewide disaster declaration from the U.S. Small Business Administration Thursday, Hogan said. Maryland businesses can apply for federal low-interest disaster loans to help cover expenses.

Businesses can apply for up to $2 million in loans from the SBA’s Economic Injury Disaster Loans, according the SBA’s website. The loans can be used to for fixed debt, payroll, accounts payable and other expenses.

Businesses can apply to the SBA’s Economic Injury Disaster Loans at the U.S. SBA’s website.

Matthew Prensky is the Ocean City News Reporter for Delmarva Now. His work focuses on business, government and community issues in Ocean City and Worcester County. He can be reached at mprensky@delmarvanow.com or on Twitter at @matthewprensky.

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