$100 Million in Grants for COVID-19 Recovery Efforts
The Michigan Strategic Fund has approved a $100 million program that will provide grants to small businesses around Michigan working to recover from the ongoing impacts of the COVID-19 virus.
"The COVID-19 virus has especially impacted Michigan's food and agriculture sector. This investment will provide critical resources to ensure the safety of Michigan's food production industry and its workforce," said Governor Gretchen Whitmer. "We can further our economic recovery in Michigan by putting federal dollars through the CARES Act to work for the people and business across our state through efforts like these grants to farms and food processors."
The State of Michigan has appropriated $100 million of federal CARES Act funding through SB 690, signed into law by Governor Whitmer last week, to implement the Michigan Small Business Restart Program to support Michigan’s small businesses that are reopening and have experienced a loss of income as a result of the COVID-19 crisis.
The Michigan Strategic Fund has authorized distribution of the funding across 15 local or nonprofit economic development organizations (EDOs) covering all 83 counties in the state to providing a base amount of $3.5 million per EDO for grants up to $20,000 each to support certain small businesses that have realized a significant financial hardship as a result of the COVID-19 virus. Participating EDOs are as follows:
- InvestUP – $4,545,455
- Networks Northwest – $4,545,455
- Otsego County Economic Alliance – $3,500,000
- Target Alpena – $3,500,000
- The Right Place – $9,545,455
- Lakeshore Advantage – $3,500,000
- Middle Michigan Development Corporation – $3,500,000
- Saginaw Future – $3,545,455
- Flint & Genesee Chamber – $8,045,455
- Lansing Area Economic Partnership – $5,545,455
- Southwest Michigan First – $7,545,455
- Ann Arbor Spark – $8,545,455
- Oakland County – $11,045,455
- Macomb County – $7,545,455
- Detroit Economic Growth Corporation – $15,545,450
The online application period will be available beginning July 15, 2020 and it will close August 5, 2020. Applications will be available at www.michiganbusiness.org/restart. Do not send your applications to your local Economic Development Department. Funds can be used as working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses.
To qualify for grant support, businesses must meet the following criteria, based on statutory requirements for the program:
- Is a business or nonprofit that can demonstrate it is affected by the COVID-19 emergency
- Needs working capital to support eligible expenses
- Demonstrates an income loss as result of the COVID-19 emergency
- Has not received a grant through the Michigan Strategic Fund’s Michigan Small Business Relief Program. Businesses who have received support through other COVID-19 relief programs, including the Michigan Small Business Relief Program loans, are eligible to apply for Restart grants.
Additionally, at least 30 percent of the funds awarded under the program must be provided to women-owned, minority-owned or veteran-owned eligible businesses. The MEDC anticipates that more than 5,000 businesses across the state will benefit from this program.
The Michigan Strategic Fund has also approved the $15 million Michigan Agricultural Safety Grant Program to support the needs of Michigan’s agricultural processors and farms. The program supports the implementation of COVID-19 monitoring and mitigation strategies to protect agricultural employees and the state’s overall food production industry. To learn more and see the grant application which goes live on July 15, visit here: https://www.michiganbusiness.org/press-releases/2020/07/$15-million-in-agricultural-safety-grants-to-provide-critical-relief-to-michigans-farms-and-food-processors.