For Small Businesses

Coronavirus Resources for Small Businesses
 

  • Tax Filing Resources for Maryland Small Businesses
     
    • To help Maryland businesses affected by the economic impact of the coronavirus, the state’s business-related tax filing deadlines have been extended to June 1. The extension applies to certain business returns with due dates during the months of March, April and May 2020 for businesses filing sales and use tax, withholding tax, and admissions and amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.
       
    • The Comptroller's Office of Maryland has created a dedicated email address to assist Maryland businesses with extension-related questions: taxpayerrelief@marylandtaxes.gov. Business owners can also call the Comptroller's Ombudsman at (410) 260-4020.
  • Resource Guide for Maryland Employers
     
    • Maryland businesses that temporarily or permanently layoff their employees can open an unemployment insurance claim for all affected employees through the Maryland Department of Labor’s Division of Unemployment Insurance’s Bulk Claim Services. To file a claim, businesses can contact a claims representative by emailing dluibulkclaims-dllr@maryland.gov or by calling (410) 767-3252.
       
    • The Maryland Department of Labor has launched a COVID-19 Layoff Aversion Fund, which helps businesses prevent layoffs and/or minimize the duration of unemployment. To learn more about this fund, see here.
       
  • Small Business Paycheck Protection Program
     
    • The Paycheck Protection Program provides small businesses with low-interest, zero-fee loans of up to $10 million. Funds can be used for payroll and benefits, and to pay interest on mortgages, rent and utilities.
       
    • Small businesses that maintain certain percentages of employees and payroll can receive debt forgiveness for a portion of the loan.
       
    • See here and here for an overview of the Paycheck Protection Program. See here for a lender factsheet. See here a borrower factsheet.
  • Low-Interest Disaster Loans for Maryland Small Businesses
     
    • The U.S. Small Business Administration (SBA) is offering low-interest federal Economic Injury Disaster Loans (EIDL) of up to $2 million to small businesses that suffer substantial economic injury as a result of the coronavirus. Learn more here. And see here for a FAQ from the House Committee on Small Business.
       
    • The SBA is also providing advance grants of $10,000 to eligible small businesses that apply for EIDLs. These grants do not need to be paid back.
       
    • Small businesses in Maryland are eligible to apply for assistance through the SBA's website.
       
    • Maryland has authorized $130 million in emergency assistance for small businesses impacted by the coronavirus. See here to learn more.
       
  • Small Business Debt Relief
    • The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows the U.S. Small Business Administration (SBA) to cover principal and interest payments on certain existing and new SBA loans, among others. See here for more information.
       
  • The Small Business Owner's Guide to the CARES Act
    • The Senate Committee on Small Business and Entrepreneurship has prepared a resource guide for small business owners to learn about the new loans, grants, and economic programs made available by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
       
  • Coronavirus-Related Information for Maryland Businesses
     
    • The State of Maryland has established a resources page for businesses impacted by the coronavirus.
       

Other Resources for Small Businesses
 

  • Permanent Extension of Small Business Expensing: The Tax Cuts and Jobs Act raised the cap for the Section 179 tax deduction for small businesses to $1 million. This will allow our nation’s small businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. Businesses exceeding a total of $2.5 million of purchases in qualifying equipment have the Section 179 deduction phase-out dollar-for-dollar until it is completely eliminated at $3.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.
     
  • Expanded Bonus Depreciation: The Tax Cuts and Jobs Act raised the bonus depreciation percentage from 50% to 100% for qualified purchases made between September 27, 2017 and January 1, 2023. The new tax law also made changes to depreciation limits on certain types of farm and personal use property as well as automobiles. For more information, please see: https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act.
     
  • Increasing Capital Available for Small Business: The Small Business Jobs Act of 2010 created the Small Business Lending Fund (SBLF), a dedicated fund of $30 billion in low-cost capital made accessible to qualified community banks (assets less than $10 billion) to encourage lending to small business. As of December 2017, the United States Treasury Department reported that participating lending institutions had increased lending by over $18.9 billion since the program’s inception.
     
  • Building on the Success of the 504 Loan Program: The 504 loan program provides capital for fixed asset projects, such as purchasing land and improvements; construction of new facilities; modernizing, renovating or converting existing facilities; or purchasing machinery and equipment. To ensure small businesses have access to 504 loans, the Small Business Administration (SBA) has reduced or eliminated the fees associated with this lending program and has increased the maximum loan size to $5.5 million. Since its launch, the 504 loan program has created over 2 million jobs – a proven win-win for businesses and lenders.
     
  • Expanding the 7(a) Loan Guarantee Program: The 7(a) loan program provides capital to establish a new business or to assist in the operation, acquisition or expansion of an existing business. The Small Business Jobs Act of 2010 permanently increased the maximum 7(a) loan size from $2 million to $5 million – helping provide the capital needed to help small businesses expand for the future.
     
  • Boosting Small Business Lending Micro-Loan Program: This SBA program provides very small loans to start-ups and newly established or growing small businesses. Under the SBA Micro-Loan Program, SBA makes funds available to nonprofit, community-based lenders that, in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000.
     

For Additional Information
 

  • U.S. Small Business Administration: The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people across Maryland and throughout the United States (http://www.sba.gov). Contact: 1-800-827-5722 or answerdesk@sba.gov.
     
  • Maryland Small Business & Technology Development Center (SBTDC): The Maryland Small Business & Technology Development Center (MDSBTDC) Network provides sound advice, counseling and support to entrepreneurs and small to mid-size businesses across the state. The Network links private enterprise, government, higher education and local economic development organizations to provide management, training and technical assistance to Maryland’s small businesses (http://www.mdsbdc.umd.edu). Contact: (301) 403-0501.
     
  • Maryland Procurement Technical Assistance Program (PTAP). The Baltimore-Washington corridor is also home to a large community of small businesses that compete for the vast array of government contracts awarded by the federal government each year. The federal government has set a goal of awarding 23 percent of all contracts to small businesses. The Maryland Procurement Technical Assistance Program assists Maryland small businesses in how to do business with federal, state, and local government agencies (http://www.mdptap.umd.edu/).
     
  • Statewide Procurement Assistance: (301) 403-2740 or admin@mdptap.umd.edu.
     
  • BusinessUSA is a new online resource that makes it easier for America’s businesses to access the services and information they need to grow, hire, and export. For more information, visit www.usa.gov/business.
     
  • For more information about specific tax provisions as they apply to your business, please visit www.irs.gov or contact the IRS small business helpline at 1-800-829-4933.