The Michigan Department of Economic Development (MEDC) is reminding potential applicants about the availability of grants and loans under the Michigan Small Business Relief Program. The administrator for the program in Charlevoix County is Networks Northwest. Full details are available on their website at https://www.networksnorthwest.org/about-us/grants-rfps-job-postings.html. A summary of the programs (from the Networks Northwest website) follows.
Applications are due at noon on April 3rd.
Michigan Small Business Relief Program
On March 19, 2020, the Michigan Strategic Fund approved the Michigan Small Business Relief Program to support businesses most impacted by the COVID-19 outbreak. Through this program, the Northwest Small Business Relief Fund Collaborative has received funding in order to provide up to $10,000 to small businesses in our community that have realized a significant hardship as a result of the COVID-19 outbreak, although with very limited funds, grants will likely range from $5,000 to $10,000. In addition, up to $10 million in small business loans are available through the Michigan Economic Development Organization (MEDC). Approximately $500,000 is available for grants for businesses in Northwest Lower Michigan with fewer than 50 employees. The maximum grant request is $10,000. Approximately $500,000 is available for loans for businesses in the region with fewer than 100 employees. The minimum loan request is $50,000 and the maximum request is $200,000. The loans will have a .25% annual interest rate and final approval for loans will come from the MEDC.
Small Business Relief Program: Grants
Eligible businesses include: A company in an industry outlined in Executive Order 2020-20, 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 had 50 employees or less as of March 16, 2020 ;
- 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 company needs to demonstrate that it was profitable prior to March 16, 2020.
The grants received must 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.
Small Business Relief Program: Loans
Eligible businesses include:
- The company is an industry outlined in Executive Order 2020-20, 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 as of March 16, 2020;
- 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 2020-20.
- The company needs to demonstrate that it was profitable prior to March 16, 2020.
The loans received 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. 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.We encourage your organization to help spread the word about this opportunity to businesses that would qualify. The application window will open on Friday, March 27 and close on Friday, April 3, 2020 at 12:00 pm EST.
