Beginning July 20, a new low-interest loan program is available to small businesses throughout Maryland that have been negatively impacted by the COVID-19 pandemic.
Governor Hogan recently announced that an additional $50 million was allocated for small businesses in need. Specifically, $5 million is being designated 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 Loan Fund 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, who will be processing applications on a first-come, first-served basis. To learn more about the new program, find eligibility criteria, or apply for a loan, visit the MMG website.