City of Cumberland COVID-19 Small Business Loan Program

The Mayor and City Council of Cumberland have established a $106,000 loan program to support small businesses negatively impacted by the COVID-19 pandemic.  

To be eligible, a business must demonstrate that: 

  1. The business was established prior to March 5, 2020 (the date that a State of Emergency was declared in Maryland);
  2. The business is in good standing with the State of Maryland;
  3. The business had no more than 50 full-time employees as of March 5, 2020;
  4. The business is located within the boundaries of the City of Cumberland; 
  5. The business has experienced a material financial loss as a result of the COVID-19 pandemic;
  6. The business does not have unpaid legal judgments owed to the City of Cumberland; and 
  7. The business is current on the payment of its personal property taxes and real property taxes, if applicable. 

Loan proceeds may be used to pay the following business expenses: mortgage or rent payments for real estate, loan or lease payments for personal property, utilities, wages, and employee benefits, and other expenses arising in the ordinary course of the applicant’s business.  All applicants will be required to timely submit a completed application and provide, upon request, satisfactory documentary proof of eligibility, financial need, and the applicant’s intended use of the loan proceeds.  By accepting loan proceeds, an applicant agrees to submit to an audit and/or inspection of the applicant’s business records by employees or agents of the City of Cumberland and agrees to maintain records detailing the applicant’s eligibility, financial need and use of loan proceeds.  

The application can be reviewed by selecting the “Review Application” button at the bottom of this announcement. Applications will be accepted commencing on Friday, May 8, 2020, at noon EST.  To submit an application, (1) select the “Review Application” button at the bottom of this page; (2) download the application; (3) complete all sections of the application and save on your computer; (4) enter your name and e-mail address in the spaces provided at the bottom of this page; (5) select the “Choose File” button to attach your completed application; and (6) select the “Send” button at the bottom of this page.  The fields described in (4) – (6) will be visible on this page commencing at noon EST on May 8, 2020.   If the applicant lacks the ability to access the application online, the applicant can obtain an application by contacting the Cumberland Economic Development Corporation, 60 Pershing Street, Cumberland, MD 21502, (301) 722-4173, [email protected]Funds are limited; therefore, applications will be reviewed in the order that they are received.  It is the Mayor and City Council’s intent to judge each applicant on the merits of the application and supporting documentation, and award program funds based upon an applicant’s genuine need.  

Loans will be limited to a maximum of $2,500 per applicant having less than 15 employees, $5,000 per applicant having between 15 and 30 employees, and $7,500 per applicant having between 31 and 50 employees.  A successful applicant will be required to execute a promissory note in advance of receiving loan proceeds that contains standard terms and conditions including (a) the applicant will repay the loan in full; (b) no payment will be required for a 180 day grace period; (c) upon the expiration of the 180 day grace period, the applicant will commence making equal monthly installment payments over a 36 month period; (d) the amount of the monthly payment will be equal to the principal amount of the loan divided by 36 months; (e) no interest shall accrue on the loan balance; and (f) no collateral or security shall be required.  The Mayor and City Council may, but shall not be required to, consider loan forgiveness or forbearance at a later date, as circumstances allow or are appropriate.  The Mayor and City Council reserve the right, in their sole and absolute discretion, to modify or amend the terms and conditions of the loan program from time to time; provided, however, these changes shall not apply to any loans made prior thereto.     

Questions regarding this COVID-19 loan program should be directed to the Cumberland Economic Development Corporation, 60 Pershing Street, Cumberland, MD 21502, (301) 722-4173, [email protected]

Submit your completed application here.

    Your Application