Modifications to the Prince George’s COVID-19 Business Relief Fund

In response to the COVID-19 pandemic, County Executive Angela Alsobrooks and the County Council agreed to the use of $10 Million EDI Funds to support Prince George’s County businesses that were adversely affected by the COVID-19 crisis. The EDI Fund provided the initial source of capital for the Prince George’s County COVID-19 Business Relief Fund (BRF). While there was an intent to raise additional funds from private sector lending institutions that has not occurred because many of those institutions committed to participate in the SBA Payroll Protection Plan (PPP).

The Prince George’s County Economic Development Corporation (EDC) and the Financial Services Corporation (FSC First) successfully launched the BRF on April 13, 2020. As of May 15, 2020, the BRF has issued commitments to 122 companies for more than $4,045,000 in Loans and $837,500 in Grants. Already, $2,110,000 has been wired to the respective borrowers. However, because of the severity of the pandemic on the regional and national economies, Prince George’s County businesses have applied for almost three times the BRF’s available $10 million.

As a result of the $158 Million federal CARES Act Grant to Prince George’s County, the County Executive intends to allocate $20 Million from the CARES Act Grant to fund the previously announced COVID19 Business Relief Fund (BRF). The County intends for the CARES Grant to reimburse the initial $10 Million EDI Fund allocation to the BRF. There are two critical changes: (1) The additional allocation gives us an opportunity to include sole proprietors, 1099 contractors and co-ops as eligible to apply; and (2) According to OMB, to be eligible for reimbursement the business relief assistance must be grants and cannot be in direct loans. That factor necessitates the following changes to both the initial awards from the BRF and to all future awards.

Previously Approved Applications:

a. In order to be reimbursable by the federal CARES Act Grant, all current BRF funded Loans must be converted to Forgivable Loans or Grants. The maximum assistance was originally $100,000 in loan funds and $10,000 in grant funds. Therefore, for previously approved applications, the maximum grant amount would now be $110,000 (although the typical BRF loan has been under $50,000, several Borrowers have received the maximum.). The Office of Law will process the necessary documentation for these changes.

b. Applicants who applied (and were approved) only for a $5,000 or $10,000 grant will be contacted and given the opportunity to revise their request considering the new provisions of the program going forward.

Newly Processed and Newly Submitted Applications:

a. Under the provisions of the $20 Million Allocation from the CARES Act Grant and the renamed Business Recovery Initiative (BRI) Guidelines, effective May 15, 2020 all commitments will be funded as Grants. In addition, the deadline for applications to the BRF is extended to 11:59 PM EST on May 29, 2020.

b. Grant award amounts will range from a $5,000 Minimum to a $100,000 Maximum.

c. Eligible applicants may include sole proprietors, 1099 contractors and co-ops.

d. All current and future BRI applicants will be required to submit:

• COVID19 Business Recovery Initiative Online Application Form

• 2018 Tax Returns

• 2019 Tax Returns or Internally-prepared financial statements

• 2020 Interim Income Statement (January – March 2020)

• Proof of an application to either the Maryland Department of Commerce’s COVID business relief programs or to the SBA’s COVID or EIDL programs.

e. The amount of Grant awards will be based upon financial statement analysis and needs assessment, regardless of the grant or loan amount that an applicant may have initially requested. Therefore, if a business has already applied, they will not have to re-apply.

f. Consistent with the prior review process, the amount of Grant awards to companies will be adjusted depending on the number of jobs affected and the justification of actual company losses caused by the COVID-19 crisis and the effects of various mandatory business closures or limitations on operations.

g. The Grant Agreement may contain the customary “public benefit requirements”.

EDC and FSC First will adjust their document review and evaluation process consistent with the changes noted above.

The modifications to the County’s COVID Business responses described in this letter will provide for a more streamlined eligibility and evaluation process and should result in funds being available to Prince George’s County companies through the BRI even more expeditiously. A communication strategy for these modifications is being finalized and will be implemented to provide all necessary information to both existing and prospective applicants.

Sincerely,

Shelly M. Gross-Wade
President and CEO
FSC First

David S. Iannucci
President and CEO
Economic Development Corporation

COUNTY EXECUTIVE ALSOBROOKS ANNOUNCES MORE FUNDING FOR COVID-IMPACTED SMALL BUSINESSES

COVID-19 Business Relief Fund Application Deadline Extended to May 22nd

Yesterday, Prince George’s County Executive Angela Alsobrooks announced that the County, subject to County Council approval, is contributing an additional $10 million in funding into its COVID-19 Business Relief Fund to help support and sustain its local businesses. This announcement comes in coordination with the County Executive’s decision to extend the County’s Stay at Home order through June 1st.  In response to the tremendous need and interest in the Business Relief Fund program, County Executive Alsobrooks has also directed an extension of the Fund deadline to May 22nd. 

 “I am pleased to be working with our County Council to make these additional funds available to the Prince George’s County business community,” said County Executive Alsobrooks.  “Small businesses make up more than 90% of the companies in Prince George’s County.  They are our neighbors and our friends, and right now they are hurting. Together, with the resources coming from the federal government and the State of Maryland, our goal is to help our small businesses survive through this pandemic and be able to come out on the other side of it stronger than ever.”

 Originally announced in April, the multi-million-dollar Prince George’s County COVID-19 Business Relief Fund, administered in partnership with the Prince George’s County Economic Development Corporation and FSC First, was created to provide financial assistance to businesses affected by the COVID-19 crisis and consists of low-cost loans of up to $100,000 and grants up to $10,000.  Recipients can utilize the Relief Fund to support cash operating expenses including payroll, suppliers, rent, fixed debt payments and other business-critical cash operating costs.

 “The additional funding for the County’s COVID-19 Business Relief Fund will continue to help small, local, and minority-owned enterprises in the County that still face closure and layoffs, and will sustain those operations during the coronavirus emergency,” said County Council Chair Todd Turner. “The use of funding from the Federal Coronavirus Aid, Relief, and Economic Security (CARES Act) will further provide financial assistance available to County-based businesses and employees as intended by Congress.  We thank our Federal partners, and County Executive Angela D. Alsobrooks and her team, for their invaluable partnership in response to COVID-19.”

 In addition to the $10 million, the Relief Fund was presented with a contribution of $65,000 from Baltimore Gas and Electric as part of its outreach to the Prince George’s County business community. Since its inception, the COVID-19 Business Relief Fund has received more than 1,400 applications with additional applications in the pipeline and has processed more than 400 applications. More than 100 companies have received commitments totaling more than $4,117,500. The County disbursed its first loans and grants to 15 companies in the amount of $780,000 within 27 days of its announcement.

The additional funding will be focused on expanding the program to address the needs of sole proprietors, 1099 independent contractors and co-ops, as these entities were previously ineligible for the loans and grants.

For more information about the Prince George’s County COVID-19 Business Relief Fund, visit

https://www.pgcedc.com/covid-business-fund-2020.  

JOINT STATEMENT ON REGIONAL COOPERATION AMONG MARYLAND CAPITAL REGION LOCAL ECONOMIC DEVELOPMENT ORGANIZATIONS

We, the Undersigned, represent the County Economic Development Organizations in the Maryland Capital Region, surrounding Washington DC.  Collectively, our Counties include 3.3 million citizens of Maryland, and 1.4 million jobs or over 52% of the Maryland economy.  While we are all fully and passionately committed to pursuing economic growth and prosperity for our specific Counties, we recognize that we are each part of a larger region, both as part of the State of Maryland and within the Greater Washington DC area.  Each County has unique strengths and resources that direct our individual economic development strategies, but the economic success of each County is inextricably linked to the Greater Washington DC region and to the State of Maryland. 

            This commonality of interests has brought us together to explore economic development collaboration on a regional level. This Joint Statement is intended to outline our commitment to growing a stronger Maryland Capital Region.

            Collectively, there are many existing areas where we already collaborate on a regional basis in economic development.  The below-signed organizations currently recognize that we are stronger together marketing as a region for out-of-market business attraction. Our collective assets present a strong business case and marketing these resources together helps raise our profile and provides an array of options to prospective clients. Additionally, as it relates to existing, in-market companies, we agree to a protocol of contacting each other when a business or company located in one jurisdiction indicates an interest in a location in another County.  Further, there is a consensus that with regard to businesses located in other Maryland jurisdictions, we agree to only reactive business development driven by such businesses’ clear interest in relocating to our counties.  We agree that we are each entitled and obligated to strongly promote the assets and strengths of our own jurisdictions, but that there is no place for disparaging competitors.  We further state that it is standard practice to include resources and assets located in neighboring jurisdictions in our individual marketing and prospect pursuits efforts. 

To further opportunities for regional collaboration, we agree to: 

1.      Explore regional joint marketing, branding, and promotional programming where the collective strengths of each County will enhance and benefit all the Undersigned;

2.      Establish shared economic development rules of ethical marketing and branding;

3.      Formalize protocols for communication in addressing business prospects and relocation events;

4.      Evaluate multi-county or state-level policy changes to address competitiveness issues for the Capital Region, or that may encourage growth in specific industry sectors, on a regional basis;

5.      Consider collective efforts in support or pursuit of targeted industry sectors where we have the opportunity to capitalize on unique assets or resources within the Maryland Capital Region;

6.      Engage other regional economic development partners when a broader economic development strategy will directly benefit the entire DMV; and

7.      Coordinate joint efforts to support a regional economic recovery from emergencies and crises, such as Covid-19, that collectively affect our communities. 

The above list is not exhaustive but represents a starting point for regional collaboration.

We, the Undersigned, on April 1, 2020, in good faith, agree to this Joint Statement for Regional Collaboration in Economic Development.

• Jill Seamon Anne Arundel County

• Darrell Brown Charles County

• Helen Propheter Frederick County

• Larry Twele Howard County

• Benjamin H. Wu Montgomery County

• David S. Iannucci Prince George’s County

• Pam Ruff MEDA