Relief On The Horizon: Michigan Strategic Fund Board Announces Pure Michigan Small Business Relief Initiative
With COVID-19 still raging in the community [and world], small, eligible businesses in Michigan could see a glimmer of hope after a special Michigan Strategic Fund [MSF] Board meeting on November 30 approved a Pure Michigan Small Business Relief Initiative. Lansing-based MSF was created by P.A. 270 of 1984 and had a broad authority to … Continued The post Relief On The Horizon: Michigan Strategic Fund Board Announces Pure Michigan Small Business Relief Initiative appeared first on The Michigan Chronicle.
With COVID-19 still raging in the community [and world], small, eligible businesses in Michigan could see a glimmer of hope after a special Michigan Strategic Fund [MSF] Board meeting on November 30 approved a Pure Michigan Small Business Relief Initiative.
Lansing-based MSF was created by P.A. 270 of 1984 and had a broad authority to promote economic development and create jobs, according to their website www.michiganbusiness.org.
The Initiative will use federal CARES Act funding to provide $10 million in grants to meet the critical needs of Michigan small businesses disproportionately impacted by the COVID-19 virus, according to a media release. Applications for businesses to apply will open on December 15; up to $15,000 is also eligible per applicant on a first-come, first-serve basis.
During a media call, several MSF officials discussed the impact this Initiative will have on local businesses during the pandemic, which has placed many businesses in financial straits before the three-week statewide pause, slated to end December 8.
Lansing-based Michigan Economic Development Corporation Chief Executive Officer Mark Burton said that as the pandemic is rising to “extremely worrying” levels during the winter season, it is essential to work with the tools available across the state to support small businesses and “persevere.”
“Last week we launched a support local campaign statewide to encourage Michiganders to shop, eat, travel locally this winter to provide our small businesses support they need to combat the adverse effects of COVID-19,” Burton said, adding that the Initiative is mainly targeted at restaurants, bars, movie theaters, meeting facilities, indoor recreation facilities, and other similar venues. “We continue to prioritize getting critically needed relief into the hands of those small businesses that need it most.”
Burton added that having already delivered 19 programs to support more than 18,500 businesses and help retain nearly 150,000 jobs across the state, this program continues on that track record.
“We’re working to get this relief out as quickly as possible,” Burton said.
Ten regions are grouped by counties with Region 10 including Oakland, Macomb, Wayne with an allotment of $3.55 million.
According to a press release, grant funds will assist eligible small businesses directly impacted by COVID-19 to meet urgent working capital needs, including payroll expenses, rent or mortgage payments, and utility expenses.
Burton said these federal CARES Act dollars were distributed by the U.S. Department of Housing and Urban Development to the Michigan Community Development Block Grant program.
From an equity component, Small Business Program Manager Suzanne Perreault said during the call that their team is working with their communications and marketing team to “spread the word” about this.
“To make sure businesses are aware of this opportunity, something we are very conscious of,” Perreault said of ensuring Black and women-owned businesses have a fair shot at the funding.
“I think as we have learned throughout this process minority-owned, women-owned [businesses] have been disproportionately impacted,” he said, adding that the state legislature required a minimum of 30 percent of funds going to these businesses to restart grants in the summer. “We continue recognizing the importance of the issue of the disproportionate impact.”
To qualify for grant support, businesses must meet eligibility criteria including but not limited to:
- Being a business in one of the targeted industries
- Must comply with all state and local orders related to COVID-19, including, but not limited, to the Michigan Department of Health and Human Services.
- Be a for-profit entity (i.e., a sole proprietorship, partnership, corporation, or LLC)
- Have a physical establishment in the Michigan County of Application and is not a home-based business
- Provide goods or services to multiple clients or customers
- Be current, or in a payment plan, on all local, state, and federal taxes due through 1/1/2020
- Have an active and valid state license(s)/registration(s), if applicable
- Is not an adverse party to litigation involving the state or municipality
- Business or Business owner has not filed for bankruptcy in the last ten years.
- Can identify a need for payroll, rent or mortgage payments, and utility expenses necessary to continue/restart business operations relative to the total grant amount
- Had annual gross revenues in 2019 greater than $25,000
- Has at least two employees, including the owner(s)
- Has fewer than 50 employees (including full-time, part-time, and owner(s) on a world-wide basis)
The timeframe in which the eligible expenses can be counted is now from November 18 to April 30.
For the full list of requirements and more information, review the program guide.