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Funding Available for Michigan Small Businesses

Economic assistance for small businesses around Michigan that have been negatively impacted by the COVID-19 virus gained approval from the Michigan Strategic Fund, the Michigan Economic Development Corporation (“MEDC”) announced March 19, 2020.

The Michigan Small Business Relief Program authorizes the MEDC to provide up to $20 million for small businesses. The funding consists of $10 million in small business grants and $10 million in small business loans.

The $10 million in small business loans willsupport businesses facing drastic reductions in cash flow and assist in supporting their workforce.

The $10 million in grant funding will go to local or nonprofit economic development organizations throughout the state. These organizations will provide grants up to $10,000 each to support certain small businesses that have experienced a significant financial hardship as a result of the COVID-19 virus. To qualify for grant support, businesses must meet the following criteria:

  • The company is in an industry outlined in Executive Order 2020-9, or any subsequent Executive Order of similar intent (“EO”), or demonstrates it is otherwise affected by the COVID-19 outbreak.
    • EO 2020-9 outlines the following industries:
      • Restaurants, food courts, cafes, coffeehouses and other places of public accommodation offering food or beverage for on-premises consumption;
      • Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms, special licensees, clubs and other places of public accommodation offering alcoholic beverages for on-premises consumption;
      • Hookah bars, cigar bars and vaping lounges offering their products for on-premises consumption;
      • Theaters, cinemas, and indoor and outdoor performance venues;
      • Libraries and museums;
      • Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios and spas;
      • Casinos licensed by the Michigan Gaming Control Board, racetracks licensed by the Michigan Gaming Control Board and Millionaire Parties licensed by the Michigan Gaming Control Board; and
      • Places of public amusement not otherwise listed above
    • The company has 50 employees or fewer;
    • The company needs working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses that occur in the ordinary course of business; and
    • The company can demonstrate an income loss as a result of the EO, or the COVID-19 outbreak.

Additionally, the program authorizes the MEDC to provide up to $10 million for small business loans to one or more Community Development Financial Institutions (“CDFI”) or a licensed SBA not-for-profit institutions (“Eligible SBA Non-Profit”), or directly from the Michigan Strategic Fund to eligible borrowers to be used to provide low-interest loans with flexible repayment terms to support certain small businesses statewide that have realized a significant financial hardship as a result of the COVID-19 outbreak. Loans to eligible borrowers must be $50,000 or more and are capped at $200,000.
In order to qualify for loan support, businesses must meet the following criteria:

  • The company is in an industry outlined in Executive Order 2020-9 (“EO”), or demonstrates it is otherwise affected by the COVID-19 outbreak, or is a company that provides goods and services to companies to the aforementioned;
  • The company has fewer than 100 employees;
  • The company needs working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses that occur in the ordinary course of business;
  • The company can demonstrate that it is unable to access credit through alternative sources;
  • The company can demonstrate an income loss of as a result of EO 2020-9 (see industries affected above).

Funds available under the Michigan Small Business Relief Program are anticipated to be available no later than April 1, 2020. These loan and grant proceeds may be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses that occur in the ordinary course of business. Through this program, in combination with other programs and services, the state is providing economic support to Michigan’s small businesses to help overcome anticipated loss of revenue as a result of the COVID-19 virus.

Visit michiganbusiness.org/covid19 for more resources for Michigan small businesses impacted by COVID-19.


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