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 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 from your local economic development organization (EDO).
Key information to know about the application process includes:
- There is one application, regardless of whether a business is applying for a grant or a loan. A business may receive a grant or a loan, but not both.
- Businesses who do not receive grants may still be considered for loans.
- The grants will be administrated by 15 regional economic development organizations throughout the state, which combined cover all 83 counties in Michigan.
- All applications or recommendations for Michigan Small Business Relief Program loans will be referred from the partner EDOs to the MEDC for evaluation and disbursement.
- Businesses should go to https://www.michiganbusiness.org/covid19/ to learn more.
Frequently Asked Questions
Q: Where do I apply?
A: You must apply through the EDO that covers your county. Find your local EDO here.
Q: How much funding is available for the grants?
A: $10 million in total has been allocated for the grant program. Each eligible business may receive up to $10,000 in grant funding through the program.
Q: How much funding is available for loans?
A: $10 million in total has been allocated for the loan program. Loans to eligible borrowers must be no less than $50,000 and are capped at $200,000, per borrower.
Q: Can I apply for both a grant & and loan?
A: No, businesses that qualify for a grant would not also be eligible for a loan. If a business requires both, it is advised that they apply directly for the loan.
Q: Do I have to apply separately for a grant & loan?
A: No – there is one application. Businesses that are not selected by their local EDO for a grant may be referred on to the MEDC for consideration of a loan.
Q: Is there a deadline to apply?
A: It may vary slightly by EDO – please contact your local EDO for a specific timeline.
Q: How long will I have to wait to know if I am awarded funding?
A: It may vary slightly by EDO – please contact your local EDO for a specific timeline.
Q: How quickly will I receive funding if I’m awarded a grant/loan?
A: It may vary slightly by EDO – please contact your local EDO for a specific timeline.
Q: If my application is denied, may I resubmit?
A: If the local EDO denies the grant request, you may be referred to the MEDC for consideration of a loan.
Q: What expenses are eligible for these grants or loans?
A: Funds can 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.
Q: What are the eligibility criteria for grants?
A: Eligible Business means a business that:
- The company is in an industry outlined in Executive Order 2020-21, 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:
- provides support to impacted employees,
- is located in a downtown district or high impact corridor or has 50 employees or less
- or is a company that provides services to companies outlined in the EO and requires additional employees to support companies or employees impacted by EO;
- The company has 50 employees or less;
- 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.
Q: What are the eligibility criteria for loans?
A: Eligible Business means a business that:
- The company is in an industry outlined in Executive Order 2020-21 (“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 as a result of Executive Order 2020-9.
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 Michigan SBDC and more. The MEDC has also developed a FAQ for Michigan businesses and communities at michiganbusiness.org/covid19-faq.