New COVID-19 Loans Available – Maryland Small Business Development Financing Authority
A new low-interest loan program is available to small businesses throughout Maryland that have been negatively impacted by the COVID-19 pandemic. Nonprofits are not eligible for these funds, but since many of our partners and supporters are for-profit enterprises, we wanted to make you aware of this opportunity.
MSBDFA Program-COVID-19 Emergency Relief Loan Fund:
Governor Larry Hogan has designated $5 million to Maryland Commerce’s MSBDFA – or the Maryland Small Business Development Financing Authority – which promotes the viability and expansion of businesses owned by economically and socially disadvantaged entrepreneurs.
The new MSBDFA Program – COVID-19 Emergency Relief LoanFund provides emergency financial relief to eligible businesses that have experienced economic hardship due to the ongoing pandemic with low-interest rates and low-documentation loans. Five-year term loans ranging from $25,000 to $200,000 will be available with an interest rate of zero percent for the first 12 months and two percent for the remaining term of the loan.
The state program is managed by a private contractor, Meridian Management Group.
Program Objective:
To provide financial relief to businesses that have experienced economic hardship due to the COVID-19 pandemic crisis. This will be accomplished with low interest rate and low documentation loans to eligible Maryland businesses.
Use of Funds:
Working capital to support payroll expenses, rent/mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of operations. Acquisition of equipment, vehicle, or facility improvements to adjust to the need to “change the way you do business” during and after the pandemic crisis.
How to Apply:
Beginning July 20, 2020, applications can be obtained and submitted on the Meridian Management Group, Inc. website, www.mmgcapitalgroup.com. Hard copies of the application can be emailed to [email protected] or mailed to:
Meridian Management Group, Inc.
826 E. Baltimore Street
Baltimore, MD 21202
Attn.: MSBDFA COVID-19 Fund
No application fees or commitment fees will be required. Applications will be processed on a first come, first served basis. See the MSBDFA Program-COVID-19 Emergency Relief Loan Fund Guidelines for more details and information.