Michigan Small Business Relief Program
The Michigan Small Business Relief Program grants are administered by 15 local and nonprofit economic development organizations (EDOs). The Enterprise Group is the EDO for Jackson County, working in conjunction with Ann Arbor Spark, and its other partners in what is considered the Greater Ann Arbor Region.
APPLICATIONS ARE NOW CLOSED
The Michigan Strategic Fund recently authorized the funding of the Michigan Small Business Relief Program, to provide up to $10 million in small business grants and $10 million in small business loans to Michigan small businesses.
A Jackson County team, consisting of staff members from several Jackson County organizations, reviewed nearly 357 grant and loan applications from area small businesses. For loans, Jackson County small businesses submitted loan requests totaling $8.1 million. Jackson County was allotted $150,000 in loan referral monies and was limited to referring 4% of the loan applications to the Michigan Economic Development Corporation for further review.
For grants, local Jackson County small businesses submitted grant requests totaling $1.9 million. Jackson County was allotted $142,000 in grant monies and was limited to funding 15% of the grant applications. Forty-two (42) businesses in Jackson County will share the $142,000 grant pool. The selection committee took several factors into consideration: diversity of the business; geographical location and the significance of the business to that specific area; the impact the grant dollars would have on helping the business; how the grant dollars will be used; completeness of the applications and if there were other financial tools that the business could access/received. The list of grant awardees is listed below:
Aladdin Electric, Inc.
Alpha Coney LLC
Anytime Fitness
Apricot Lane
Armstrong Industrial Management LLC
Axe Play
Belgian Screw Machine Products, Inc.
Brooklyn Products
Brothers Outdoor World LLC
Concord Manufacturing
Coppernoll Hardware
D & L Equipment Inc.
Deer Run Golf Course
Ductz of Mid-Michigan
Fab-Alloy Company
Felician Children’s Center
Gilbert Chocolates
Grimes Plumbing Co. Inc.
Indispensable Healthcare LLC
Jackson Glass Works, Inc.
Makeup Geek, LLC
Mi Padrino
Michigan Pipe Co.
Mid-Michigan Laser LLC
Napoleon Livestock Commission Co. LLC
Painted Plethora Home, LLC
Patrone’s Day Spa & Salon, Inc.
Pentar Stamping Inc.
Phoenix Child Care & Academy
Reynolds Management Inc.
Roxy Café LLC
Sayre Builders, Inc.
Spring Arbor Café LLC
St. Vincent DePaul Thrift Stores
Summit Orthodontics
Synchronous Manufacturing Inc.
The Blessed Nest
The Michigan Theatre of Jackson, Inc.
Walt’s Health Foods & Specialty Shop, Inc.
Weatherproof, Inc.
Wolverine Trailers Inc.
Zimmer Marble Co. Inc.
Our team at the Enterprise Group is continuing to collaborate and advocate with local, state and national partners on programs to provide relief for small businesses. This includes evaluating the details of the federal stimulus package to determine how it will influence our efforts to provide economic relief in our region.
As we continue taking critical steps to flatten the COVID-19 curve, we recognize that our region's small businesses are among those most severely impacted by these protective measures. Businesses are encouraged to consider additional resources below as options for financial support during this time:
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Small Business Development Center Economic Injury Disaster Loans: These loans will provide vital capital for businesses facing temporary economic hardships as a result of the COVID-19 outbreak. Small businesses apply for this EIDL directly with the SBA at https://sbdcmichigan.org/disaster-loan-help/.
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Paycheck Protection Program: Last week, Congress passed the CARES Act that, among other things, allocated $350 billion through the Paycheck Protection Program to help small businesses keep workers employed during the COVID-19 outbreak. These loans can be up to 2.5 times the borrower's average monthly payroll costs (not to exceed $10 million) and can be used for expenses like payroll costs, rent on a leasing agreement and payments on utilities. To learn whether your business qualifies for this loan and to find more information about how it could help your business, go here: http://paycheckprotectionprogrammichigan.com/.
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Michigan Economic Development Center's Capital Access Program: As small and medium-size businesses across the state are negatively impacted by the COVID-19 outbreak, existing programs through MEDC's Capital Access Program provide opportunities for financing that may not otherwise be available. Any business that has been affected by COVID-19 is eligible to receive support through the Collateral Support and Loan Participation programs. Additional information about the eligibility requirements for these programs, as well as the applications for each program, can be found at michiganbusiness.org/covid19. There are many lenders across Michigan that already participate in the MEDC Capital Access program. Talk with your lender about whether this is an option that might be right for you.
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Dream Maker Fund: Patti Poppe, CEO of Consumers Energy, and her husband, Eric, have generously donated $1 million of their own, personal money to help Jackson County small businesses. Small businesses can apply for a grant up to $5,000 by applying here www.dreammakerfund.org.
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COVID-19 Response Fund: United Way of Jackson County and the Jackson Community Foundation have launched a fund to help the community deal with the effects of the COVID-19 outbreak and the steps taken to slow the disease’s spread. The COVID-19 Response Fund will tackle the greatest needs afflicting the most vulnerable people in Jackson County, particularly those in poverty or ALICE (Asset Limited, Income Constrained, Employed). You can find out more here http://uwjackson.org/covid-19-relief-fund/.
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Employee Retention Tax Credit https://www.irs.gov/coronavirus/employee-retention-credit
Small Business Relief Grants and Loans
The Michigan Economic Development Corporation is providing immediate relief to small businesses in Jackson County through the Small Business Relief Program, a funding initiative that will award grants and loans to eligible businesses.
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The Enterprise Group will partner with the Michigan Economic Development Corporation (MEDC) and the Greater Ann Arbor Region to help small businesses apply for these funds.
The Greater Ann Arbor region (GAAR) was allocated $900,000 from the $10 million MEDC grant fund and Jackson County businesses will be eligible for $142,000 of the GAAR distribution.
The MEDC loan fund totals $10 million and will lend eligible borrowers a minimum of $50,000 and a maximum of $200,000.
Key information to know about the application process includes:
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There is one application, regardless of whether a business is applying for a grant or a loan.
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A business may receive a grant or a loan, but not both.
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Businesses who do not receive grants may still be considered for loans.
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All applications or recommendations for Michigan Small Business Relief Program loans will be referred from The Enterprise Group to the MEDC for evaluation and disbursement.
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Are you Eligible?
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Businesses with less than 50 employees are eligible for grants.
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Businesses with less than 100 employees are eligible for loans.
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Eligible Uses For Funding:
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Grants and loans 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.
Michigan Small Business Relief Grants
Grant Amounts Available
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$10,000 is the maximum grant that will be awarded per applicant. Grants will be awarded based on demonstrated need until the $142,000 grant funding allocated to Jackson County by GAAR is exhausted.
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Eligibility
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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, that meets one or more of the following:
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provides support to impacted employees
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is located in a downtown district or high impact corridor
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has 50 employees or less
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provides services to companies outlined in the EO and requires additional employees to support the companies or employees impacted by EO
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needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business
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able to demonstrate an income loss as a result of the EO, or the COVID-19 outbreak
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Is this grant program related to the Dream Maker Emergency Relief Fund? Can i apply to both?
The Michigan Small Business Relief Program is separate from the Dream Maker Fund. However, the intention is to provide grant dollars to as many impacted businesses as possible. Receiving funding through the Michigan Small Business Relief Program may affect funding availability in the Dream Maker Fund, and vise versa.
Michigan Small Business Relief Loans
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Grant Amounts Available
Loans to eligible borrowers must be $50,000 or more and are capped at $200,000.
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Eligibility
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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, that meets one or more of the following:
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has fewer than 100 employees
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needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business
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demonstrates that it is unable to access credit through alternative sources
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demonstrates an income loss of as a result of Executive Order 2020-9
Interest Rate: 0.25% per annum
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Term: Interest only for 60 months following loan closing followed by a fully amortizing 60-month term
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Repayment Terms: Repayment terms will be determined based on business need and are anticipated to be monthly interest-only payments for the first 60 months following closing.
Payments made in excess of interest due will be applied to principal.
Once principal is repaid, it may not be redrawn. Payments of principal and interest will begin at 61 months following closing and will be paid monthly with all principal due to be repaid no later than 120 months following closing.
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How do I apply?
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Applications will be available starting Monday, 3/30/20, and will close on Friday, 4/3/20.
Questions?
Contact Alex Masten at 517-206-4874.
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A member of our team will contact you within 72 hours of applying, grant applicants will be notified of the final decisions the week of April 6.
About the Program
01
How the Michigan Small Business Relief Grant Process Works
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How the Michigan Small Business Relief Loan Process Works
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View The Small Business Relief Program Factsheet
How the Michigan Small Business Relief Grant Process Works
The Michigan Small Business Relief Program grants will be administered by 15 local and nonprofit economic development organizations (EDOs) around Michigan, covering all 83 counties in the state. These 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 non-profit leaders, among others. Grant funds will be disbursed by the EDO.
How the Michigan Small Business Relief Loan Process Works:
The Michigan Small Business Relief Program loans 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. Loans will be disbursed by the MEDC.
