|The Michigan Economic Development Corporation is reporting that Michigan’s small businesses impacted by the COVID-19 virus can now apply for grants and loans through the Michigan Small Business Relief Program. The process is now live.
That program will provide up to $20 million in grants and loans to provide economic assistance to Michigan’s small businesses that have been negatively impacted by the COVID-19 virus, and in turn help support workers and their families facing economic uncertainty during the outbreak. Information on how to apply, as well as eligibility criteria, is available at this link:
Governor Gretchen Whitmer says, “Small businesses across our state are facing unprecedented challenges as we take every step possible to mitigate the spread of coronavirus,” and adds, “With this funding, we can provide real assistance to support our businesses, communities, entrepreneurs and workers around the state impacted by the tough, but necessary actions we are taking to mitigate the spread of this virus.”
The grants and loans under the Michigan Small Business Relief Program will support businesses facing drastic reductions in cash flow and the continued support of their workforce and 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.
Key information to know about the application process includes:
The Michigan Small Business Relief Program grants, authorized by the Michigan Strategic Fund on March 19th, will be administered by 15 local and nonprofit economic development organizations (EDOs) around Michigan, covering all 83 counties in the state. Those EDOs are responsible for reviewing applications of small businesses in their region and entering into agreements with eligible small businesses. Each EDO will establish a review committee that may include representatives from local workforce agencies, local SBDC representatives, business and nonprofit leaders, among others. The full list of EDOs administering Michigan Small Business Relief grants and the counties they will serve is below.
Local and nonprofit EDOs across Michigan applied for the grant funds and were selected based on capacity to administer the program and ensure coverage to small businesses in all 83 counties in Michigan.
The $10 million in loans through the Michigan Small Business Relief Program will be referred to the MEDC from the local EDO partners where it will be reviewed by a loan review committee including the Chief Business Development Officer and Senior Vice President of Business Development Projects. All loans made through the Michigan Small Business Relief Program will be approved through Michigan Strategic Fund delegated authority.
MEDC CEO Mark A. Burton says, “We know small businesses across the state are struggling right now, and we are leveraging every resource available to provide relief in the face of these challenging economic circumstances,” and concludes, “The Michigan Small Business Relief Program will provide immediate assistance to support the health and sustainability of the state’s small businesses, communities and residents.”
The MEDC anticipates that at least 1,100 businesses across the state will benefit from this program.
Approved economic development organizations:
In addition to the Michigan Small Business Relief Program, michiganbusiness.org/covid19 also features other resources for businesses across Michigan to assist them in recovering from economic losses as a result of the COVID-19 virus. This includes U.S. Small Business Administration emergency loans, the Pure Michigan Business Connect virtual procurement and donation platform, support services offered through the SBDC and more. The MEDC has also developed a FAQ for Michigan businesses and communities at michiganbusiness.org/covid19-faq.