The Michigan Strategic Fund voted to enact two programs aimed at providing economic relief to small businesses and live event venues across the state. Introduced by the Michigan Economic Development Corporation, the initiatives serve as a response to the Gatherings and Face Masks Order implemented by the Department of Health and Human Services in early December and the economic impact of COVID-19 to these businesses.
While the recent national health crisis continues to negatively impact small business owners across the state, causing many to close permanently, several programs have been offered with the help of the MSF and MEDC to give owners some financial assistance.
Under the Michigan Small Business Survival Grant Fund, as provided by the Michigan Legislature, $55 million will be awarded to 15 local economic development organizations across the state. The local EDO’s will then provide grants to community small businesses who have suffered financial impacts due to COVID-19.
“With these, the process allows for an application window of roughly three-and-a-half business days. At which point, the application statewide will be separated and delivered, electronically of course, to the 15 EDO’s that have the statewide coverage,” says Mark Burton, president and CEO of MEDC. “At that level, they will take in the applications that come from their region and they will review and process and eventually select those who will be awarded funds.”
With power going to the EDO’s to distribute grants to eligible small businesses, they will also determine grant amounts to meet demand. Each award amount cannot exceed $20,000 for small businesses that have been closed due to the pandemic or $15,000 for businesses that have been partially closed due to the Gatherings and Face Masks order.
“The local economic development organizations do have the option to provide grants below those maximums so they can be spread out across additional small businesses,” Josh Hundt, executive vice president and chief business development officer for MEDC, says.
As a result of social distancing orders and mask ordinances, the state’s entertainment industry has been greatly impacted. The State of Michigan has provided $3.5 million towards the launch of the Michigan Stages Survival Grant Program. With this program, live music and entertainment venues are eligible to receive one-time grants to help curb the financial effects of the pandemic. Venues must use the funds towards business costs
“We look at the basic components that have to be a business between one and 100 employees, be an industry that has demonstrated being affected by the current order and importantly, a business that needs working capital to support payroll expenses, rent or mortgage payments, utility payments or other similar expenses and can also demonstrate an income loss as a result of the order,” Hundt says.
The Michigan Independent Venue and Promoter Association will lead the charge in accepting, reviewing and approving grant applications. Upon approval, the MSF will distribute funds to each venue. The entertainment grant payments will not exceed $40,000 for each awarded venue.
“This is a separate and distinct program from any of the previous programing that we have utilized, and the statute does allow for companies under the program to utilize this funding even if they have received prior funding under tools such as the Michigan Small Business Relief Program or the Michigan Small Business Restart Program,” Hundt says.
With the help of the MEDC, these newest program initiatives represent the 22nd and 23rd COVID relief programs initiated by the organization, helping to generate about $240 billion dollars to small business across the state.
Applications for the Michigan Small Business Survival Grant will be available from January 19 until January 22 while applications for the Michigan Stages Survival grant are open from January 21 through January 28. Previous financial awards from the Michigan Small Business Relief Program or the Michigan Small Business Restart Program will not impact eligibility.
To apply, visit the Michigan Business webpage www.michiganbusiness.org/stages and www.michiganbusiness.org/survival.
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