MD Department of Commerce Update- June 10, 2020
Federal Reserve Expands Terms of Main Street Lending Program: The Main Street Lending Program (which has yet to launch) will provide a total of $600 billion in financing for small and medium-sized businesses, with changes that should make it more accessible to businesses. Loans will be made through participating lenders.
The Fed will lower the minimum loan amount from $500,000 to $250,000, raise the maximum loan amount from $200 million to $300 million and extend the repayment period from four years to five years. Borrowers are not obligated to make principal payments for the first two years. The Fed will increase the portion of certain loans it buys from banks from 85% to 95%.
Second Round of State Grants to Manufacturing Companies:
GovernorHogan announced that Maryland has awarded an additional $1.6 million in the second round of grants to 25 Maryland companies for pivoting to or expanding the production of Personal Protective Equipment (PPE). Awardees include Integral Components in Carroll County, and Patriot Technologies and Integrated Pharma Services in Frederick County.
Maryland Department of Commerce Grant and Loan Update:
Commerce has disbursed or approved nearly all of the $150 million allocated for state coronavirus relief grants and loans, including the manufacturing grants. 5,012 businesses have been approved for grants, and 4,300 awardees have been sent agreements. The State Comptroller's Office has disbursed roughly half of the $65 million in grant funding.
Loan agreements are placed on a fast track once completed. Of the $75 million available for loans, $65 million will be awarded to applicants who filed in the first two days the program was open.