Frost Law
In response to the Francis Scott Key Bridge collapse, several lifelines have been extended to businesses. On March 29, 2024, Comptroller Brooke E. Lierman announced that the Office of the Comptroller of Maryland would waive certain late payment penalties and statutory interest for Maryland businesses affected by the tragedy through May 31, 2024.
Governor Wes Moore announced the Port of Baltimore Worker Retention Program to aid Port of Baltimore businesses in retaining employees during the recovery phase. The $12.5 million initiative is designed to prevent layoffs by assisting impacted businesses in retaining their workforce until the Port fully reopens. Additionally, launching on Monday, April 22, is the Port of Baltimore Emergency Business Assistance Program. It will offer grants of up to $100,000 to eligible businesses with operations impacted or shipments disrupted at the Port of Baltimore. Furthermore, the Department of Housing and Community Development will unveil the Small Business Grants Program and Business Loan Program.
Moreover, the U.S. Small Business Administration (SBA) has extended support to all affected businesses in Maryland and surrounding areas by providing low-interest, long-term Economic Injury Disaster Loans (EIDL loans). Businesses can apply for EIDL loans, designed to provide working capital to small businesses, agricultural cooperatives, and non-profit organizations affected by the aftermath of this catastrophe. The loans, which can be in amounts up to $2 million, aim to help businesses overcome a temporary loss of revenue resulting from the bridge collapse. While credit requirements apply, the SBA emphasizes its commitment to helping businesses navigate this challenging period.
Eligibility for EIDL loans is based on the financial impact of the disaster only and not on any actual property damage and these loans are restricted to small businesses without the financial ability to offset the adverse impact without hardship. The loan terms extend up to 30 years, with interest rates capped at 4 percent for small businesses and 3.25% for private nonprofit organizations. Interest will begin accruing after a period of 12 months from the date of the initial disbursement of the disaster loan. Repayment for SBA disaster loans is scheduled to start 12 months following the date of the first disbursement. These loans may be used to pay normal operating expenses, such as fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disruption.
The affected areas encompass a wide geographic area, including primary counties such as Allegany, Anne Arundel, Baltimore, Calvert, and many more, as well as contiguous counties in neighboring states (Delaware, Pennsylvania, Virginia, and West Virginia).
It is essential to note that the deadline for applying for EIDL loans is December 30, 2024. Therefore, affected businesses are encouraged to act promptly to access the available support and financial relief. Navigating agency requirements during challenging time for a business can understandably feel overwhelming and confusing. Our team understands the complexities involved and is here to offer assistance if needed, by providing guidance and support to businesses navigating the application process.
If you have any questions or concerns about EIDL loans, then please reach out to our team at (410) 497-5947 or schedule a confidential consultation.
In response to the Francis Scott Key Bridge collapse, several lifelines have been extended to businesses. On March 29, 2024, Comptroller Brooke E. Lierman announced that the Office of the Comptroller of Maryland would waive certain late payment penalties and statutory interest for Maryland businesses affected by the tragedy through May 31, 2024.
Governor Wes Moore announced the Port of Baltimore Worker Retention Program to aid Port of Baltimore businesses in retaining employees during the recovery phase. The $12.5 million initiative is designed to prevent layoffs by assisting impacted businesses in retaining their workforce until the Port fully reopens. Additionally, launching on Monday, April 22, is the Port of Baltimore Emergency Business Assistance Program. It will offer grants of up to $100,000 to eligible businesses with operations impacted or shipments disrupted at the Port of Baltimore. Furthermore, the Department of Housing and Community Development will unveil the Small Business Grants Program and Business Loan Program.
Moreover, the U.S. Small Business Administration (SBA) has extended support to all affected businesses in Maryland and surrounding areas by providing low-interest, long-term Economic Injury Disaster Loans (EIDL loans). Businesses can apply for EIDL loans, designed to provide working capital to small businesses, agricultural cooperatives, and non-profit organizations affected by the aftermath of this catastrophe. The loans, which can be in amounts up to $2 million, aim to help businesses overcome a temporary loss of revenue resulting from the bridge collapse. While credit requirements apply, the SBA emphasizes its commitment to helping businesses navigate this challenging period.
Eligibility for EIDL loans is based on the financial impact of the disaster only and not on any actual property damage and these loans are restricted to small businesses without the financial ability to offset the adverse impact without hardship. The loan terms extend up to 30 years, with interest rates capped at 4 percent for small businesses and 3.25% for private nonprofit organizations. Interest will begin accruing after a period of 12 months from the date of the initial disbursement of the disaster loan. Repayment for SBA disaster loans is scheduled to start 12 months following the date of the first disbursement. These loans may be used to pay normal operating expenses, such as fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disruption.
The affected areas encompass a wide geographic area, including primary counties such as Allegany, Anne Arundel, Baltimore, Calvert, and many more, as well as contiguous counties in neighboring states (Delaware, Pennsylvania, Virginia, and West Virginia).
It is essential to note that the deadline for applying for EIDL loans is December 30, 2024. Therefore, affected businesses are encouraged to act promptly to access the available support and financial relief. Navigating agency requirements during challenging time for a business can understandably feel overwhelming and confusing. Our team understands the complexities involved and is here to offer assistance if needed, by providing guidance and support to businesses navigating the application process.
If you have any questions or concerns about EIDL loans, then please reach out to our team at (410) 497-5947 or schedule a confidential consultation.
