Business Toolkit: COVID-19

Develop a Plan  

As our country continues to take measures to protect public health & safety, small businesses continue to face challenges in capital access, workforce capacity, inventory & supply chain shortfalls, facility clean-up costs, changing demand, and marketing challenges. 

Businesses should seek guidance from technical assistance providers such as a local Small Business Development Centers, legal counselors, insurance providers, and financial institutions.  A database of free & low-cost business resources available to Frederick businesses & residents can be found here. Looking for a resource but can’t find it? Contact our office for help! 

Proactive action and clear communication will be critical to overcoming the challenges of the coming months. 

Maintain Access to Capital

With unordinary market demand & required closures, cashflow concerns are top of mind for many small business owners.  Below are some programs designed to assist cash-strapped businesses. 

Payroll Protecppp Opens in new windowtion Program 

The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus crisis. SBA is currently offering first draw PPP loans for first time program participants and second draw loans for certain businesses who have previously received a PPP loan. Borrowers may be eligible for loan forgiveness. 

Learn more about the PPP program here. 

EIDL Opens in new windowSBA Economic Injury Disaster Loan & Emergency Advance  

The State of Maryland has received U.S. Small Business Administration Economic Injury Disaster Declaration. This means small businesses and private non-profit organizations impacted by the COVID-19 pandemic can apply directly to SBA for low-interest federal disaster loans. This assistance is crucial and can help businesses pay bills, payroll, and accounts payable during this difficult time.

Find more information & the application for the SBA’s Economic Injury Disaster Loans here

Shuttered VenuesShuttered Venue Operators Grant

 The Shuttered Venue Operators (SVO) grant program includes $15 billion in grants to be administered by the SBA's Office of Disaster Assistance. Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. Eligible entities include live venue operators or promoters, theatrical producers, live performing arts organization operators, relevant museum operators, zoos and aquariums who meet specific criteria, motion picture theater operators, talent representatives, and each business entity owned by an eligible entity that also meets the eligibility requirements. Additionally, the business must have been in operation as of Feb. 29, 2020; and the venue or promoter must not have received a PPP loan on or after Dec. 27, 2020.  

Learn more about the program here

Employer Tax CreditsCOVID-19 Employer Tax Credits

* Tax Credit for Required Paid Sick and Family Leave

The Families First Coronavirus Response Act gives all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members.

* Employer Retention Credit 

The Employer Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of up to $10,000 in qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Small businesses that receive small business loans under the Paycheck Protection Program are not eligible.

Learn more about both Tax Credit programs here. 

Local Relief

Last year, The City of Frederick’s Department of Economic Development launched two new grant programs designed to provide local relief to small businesses struggling due to the economic restrictions of COVID-19. The following report summarizes the distribution and impact of these City programs.

Small Business Relief