Maryland Comptroller Proposes $500 Million Rainy Day Fund to Help Small Businesses Get Through the Pandemic
As the pandemic stretches into the back-to-school season, and as going back to school just means another few months of attending virtual class meetings and completing assignments online, Maryland retail businesses are struggling. Customers would love to shop, but is it worth the risk of being exposed to COVID-19, and more importantly, where will they get the money? The crisis has lasted longer than anything that could be solved by a $1200 stimulus check to low-income and middle-income consumers; indeed, it has outlasted the CARES Act in its entirety. Even after the state distributed federal and state loans and grants to thousands of applicants, many small businesses in Maryland have been forced to close, and many more are seriously considering it. Maryland Comptroller Peter Franchot has proposed a new plan intended to help small businesses throughout the state weather the next phase of the coronavirus pandemic. To discuss your plans for how to keep your business afloat this fall, contact a Maryland small business lawyer.
When Taking on More Debt Is Not the Solution
Taking financial risks in the hopes of reaping rewards for them is part of what makes entrepreneurship exciting for some people, but the COVID-19 pandemic has forced most Americans, including business owners, to take an honest look at our nationwide debt problem. If you hesitate to apply for a business loan that you will only be able to repay if the economy takes a sharp turn for the better in the near future, then you are just being realistic. Franchot has proposed several initiatives to help Maryland small businesses stay open, most of which do not require more borrowing on the part of small businesses already struggling with a heavy debt burden. These are some of Franchot’s suggestions for how Maryland can help small businesses and consumers this fall:
- Tapping into a Rainy Day fund of state money and designating half a billion dollars for grants to Maryland small businesses. Companies with 50 employees or fewer would be eligible to receive $10,000 each. The money would be given as a grant, meaning that the recipients would not need to repay it.
- Increased incentives for landlords to negotiate with commercial tenants about continuing to rent commercial spaces
- Additional tax-free shopping days, in addition to the back to school week, starting August 9, in which consumers do not need to pay income tax on retail items that cost $100 or less
- Additional tax credits for small businesses
Maryland has already offered assistance to small and medium-sized businesses in the state, in the form of grants and loans. Despite these programs, many local companies have gone out of business. Keeping as many businesses as possible open throughout the pandemic would help the economy recover more quickly.
Let Us Help You Today
A Washington DC small business lawyer can help your company turn over a new leaf this fall, even as the COVID-19 pandemic continues to pose obstacles to your business operations. Contact Tobin, O’Connor & Ewing for a consultation on your case.