Michigan Small Business Survival Grant Program Provides $55 Million in Grants for COVID-19 Relief

The State of Michigan has allocated $55 million to implement the Michigan Small Business Survival Grant Program to support the needs of businesses that have been impacted by COVID-19. Eligible businesses can receive grants of up to $20,000 if they were completely closed, or up to $15,000 if they were partially closed, as a result of the November 2020 and December 2020 Gatherings and Face Mask Order, need working capital to cover business-related expenses and can demonstrate an income loss.

The grant application will open at 9:00 a.m. on Tuesday, January 19, 2021, and close on Friday, January 22, at noon. 

The application will be available here: https://www.michiganbusiness.org/survival

Eligibility Requirements

To be eligible for funding under this program, small businesses must be a for-profit or nonprofit company and meet all criteria below.

• 1 to 100 employees (including full-time, part-time and owner/employees) worldwide as of November 17, 2020.
• Is in an industry that demonstrates it is affected by the Order.
• Needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses.
• Demonstrates an income loss due to the Order as determined by the Economic Development Organization (EDO) in which an eligible business is located.
• Is not a live music and entertainment venue that is eligible for funds under section 401 of Senate Bill No. 748: Michigan Stages Survival Grant Program.

Industries Affected by the Order

Eligible businesses disproportionately impacted by COVID-19 and the Gatherings and Mask Order will largely fall into one of the categories below. However, businesses in other industries may be considered if they can demonstrate they meet the eligibility, at the EDO’s discretion, particularly if the Gatherings and Mask Order impacted them. 

• Food service establishments (such as restaurants and bars, coffee, bakeries, catering, breweries, distilleries, wineries, tea shops, banquet facilities, and other food and beverage service providers)
• Retail (such as boutiques, bookstores, hardware, anything being sold that is not food)
• Exercise facilities (such as gyms, studios, pool facilities, ice skating rinks, organized sports)
• Entertainment venues or live event venues that are not eligible for the Michigan Stages Survival Grant as defined in SB 748
• Recreational facilities and places of public amusement (such as bowling alleys, arcades, bingo halls)
• Nonprofits (such as libraries, museums, churches, religious centers, advocacy organizations)
• Personal care services (such as hair, nail, tanning, massage, spa)
• Schools
• Childcare and camps
• Transportation (such as limo services)
• Other (applicant must specify in the application)

Program Overview

Grant funding has been distributed to 15 local or nonprofit economic development organizations (EDO). Each local EDO will review submitted applications from businesses located in their area and provide grants to eligible small businesses that need working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses. EDOs will be responsible for accepting, reviewing and approving applications, and ultimately, awarding and disbursing grant funds to the selected businesses.

Visit https://www.michiganbusiness.org/survival for the list of local EDOs, funding allocations and contact information.

How to Prepare to Apply

Please review the following documents to help prepare for the application.

• Frequently Asked Questions
• MEDC Press Release (1/14/21)
• A business may create an account in Connect Space in advance of the application opening or already have an account. Visit https://pmbc.connect.space and click “Sign Up Now” to create an account. A Connect Space account is required to apply, and only applications submitted online will be accepted. Physical or emailed copies of the application will not be accepted.

Grant Timeline

• The application period will open on Tuesday, January 19, at 9:00 a.m. and close at noon on Friday, January 22.
• All applications will be reviewed and scored beginning on Monday, January 25.
• January 29 – February 28: Funds disbursed
• If the EDOs do not disburse any funds by February 28, funds will be returned to the Michigan Strategic Fund for reallocation to one or more EDOs for disbursement to eligible businesses by April 30, 2021.

Please visit https://www.michiganbusiness.org/survival for complete program details and a video to help you prepare. Contact your Yeo & Yeo professional if you need assistance.