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LATEST UPDATE ON MICHIGAN ECONOMIC SUPPORT PROGRAMS

LATEST UPDATE ON MICHIGAN ECONOMIC SUPPORT PROGRAMS

UHY Small Business Advisory services is currently monitoring funds that are available to small businesses in Michigan. Below is a list of grant and loan funds that we have come across that you may qualify for. While considering applying for any of these loans, please contact your UHY representative if you have any questions or need any assistance in compiling information required for the applications.

Michigan Small Business Relief Program

The Michigan Small Business Relief Program has been allocated up to $10 million in low-interest loans to help small businesses impacted by COVID-19. These loans allow MEDC to provide loans between $50,000 and $200,000, with flexible repayment terms. There will be a focus on approving businesses who are at risk of closure or unable to pay working capital expenses without the immediate support. Each area location is teaming up with banks to issue these loans. To apply for the loan, you will need to go to the links for your specific region provided below.

Common qualifications for Small Business Relief Loans and details:

  • Funding availability on or about April 1, 2020
  • Fewer than 100 employees
  • Have a need for working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses related to the ordinary course of business
  • Can demonstrate that it is unable to access credit through alternative sources
  • Interest rate of .25% per annum
  • Repayment determines are on a case-by-case basis and are anticipated to be monthly interest only payments for the first 60 months following closing

The program also has been allocated up to $10 million to issue grants to eligible small businesses. The grants are administered by various Economic Development Organizations (EDOs) throughout the state of Michigan. It is important to note that some of these have quick deadlines, as early as March 29th.

These grants are intended to help small businesses experiencing significant financial hardship as a result of COVID-19. Each specific location may have varying qualifying factors as each location has been allotted a specific amount of available funds to award.

Common qualifications for Small Business Relief Grants:

  • Experienced an income loss as a result of Executive Order 2020-20
  • Have a need for working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses related to the ordinary course of business
  • Have 50 employees or less as of March 16, 2020
  • Specific industry listed in Executive Order 2020-20 or
  • Demonstrate direct impact in business due to COVID-19
  • Located in a downtown district or high impact corridor or
  • Provide goods or services directly to business types in Executive Order 2020-20

Below is a summary of deadlines, locations and links (blue/underlined) to the specific EDO websites.

Ann Arbor Area Community Foundation – Short Term Cash Flow Loan Program
The Ann Arbor Area Community Foundation (AAACF) is expected to provide a Short Term Cash Flow Loan program with an anticipated open date of March 27, 2020. The loan would be available to 501(c)3 nonprofit organizations based in or primarily serving Washtenaw County, MI. These loans will be on a first-come, first-served basis. They would consist of cash flow loans of up to $50,000 with a payback period of up to 180 days. According to the AAACF website, other loan qualifications would be as follows:

  • Existence of legally binding grant contract(s) currently in effect that is not at risk for defunding or nonpayment, booked pledge(s) by reliable donors, historical performance of reliable revenues
  • Ability to repay as evidenced by the organization’s recent financial health and its projected cash flow during the repayment period
  • The application packet would need the following information:
    o Annual organization budget (prior to COVID-19 crisis)
    o Projected organization budget (next 6-12 months)

If there is interest in this offering and for more information please visit the AAACF website

Washtenaw Small Business Resiliency Fund
Ann Arbor SPARK, Washtenaw County’s Office of Community & Economic Development, WCC’s Entrepreneurship Center and SBDC have joined forces to offer an emergency fund that provides working capital grants up to $2,500 to qualifying businesses. Per the website, qualifications include:

  • Financial hardship due to COVID-19
  • Household income less than $81,000 annually
  • Have no more than 10 employees
  • Physical presence in Washtenaw County

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