Michigan Small Business Relief Program to Help Businesses Impacted by Coronavirus

The Michigan Strategic Fund has approved economic assistance for small businesses around Michigan that have been negatively impacted by the COVID-19 virus.

The Michigan Economic Development Corporation made the announcement Thursday.

The Small Business Relief Program authorizes the MEDC provide up to $20 million in support for small businesses.

The money is divided between $10 million in small business grants and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce.

The money will be given to local and nonprofit economic development organizations throughout the state to provide grants up to $10,000 each to support certain small businesses that have realized a significant financial hardship as a result of coronavirus.

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, as well as meeting additional criteria;
  • 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 is able to demonstrate an income loss as a result of the EO, or the COVID-19 outbreak.

The program also allows the MEDC to provide up to $10 million for small business loans.

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 Executive Order 2020-9.

For more information, click here.

Categories: Coronavirus