Michigan Small Business Survival Grant Program to provide $55 million in grants for COVID-19 relief efforts

• Michigan Strategic Fund authorizes relief programs to support small businesses impacted by COVID-19 and recent public health orders • Application will open January 19 at 9am EST at www.michiganbusiness.org/survival • Small Business Survival grants will be administered by 15 Economic Development Organizations covering all 83 counties • All applications received will be considered by EDOs in the review process • $3.5 million Michigan Stages Survival Grant program also approved to offer relief to live music and event venues statewide.

LANSING, Mich. – The Michigan Strategic Fund today approved two grant programs – the Michigan Small Business Survival Grants and the Michigan Stages Survival Grants – totaling $58.5 million in relief to help meet the urgent needs of small businesses and live event venues impacted by the COVID-19 virus, the Michigan Economic Development Corporation announced.

The State of Michigan appropriated the funds through SB 748, signed into law by Governor Gretchen Whitmer on Dec. 29, to implement the programs to support Michigan’s small businesses that have been especially impacted as a result of the COVID-19 pandemic.

“From the beginning, my administration has been deeply committed to providing some crucial support to Michigan’s small businesses that have been hit hard by the COVID-19 pandemic,” said Governor Gretchen Whitmer. “With these grant programs, we can provide immediate assistance to those businesses. As we work to distribute the safe and effective vaccine and end the pandemic once and for all, I will continue to partner with leaders across the state to provide relief for our small businesses and their employees.”

The Michigan Small Business Survival Grant Program will provide $55 million in grants to meet the urgent need of Michigan small businesses that have experienced a significant financial hardship due to the recent COVID-19 emergency “gatherings and face mask orders.” Grants of up to $20,000 will be awarded to businesses that are fully closed, with grants of up to $15,000 awarded to businesses that have been partially closed, or otherwise are open and can demonstrate an impact.

MSF also approved the $3.5 million Michigan Stages Survival Grant Program, which will provide up to $40,000 in one-time grants to eligible Michigan live music and entertainment venues that have experienced a significant financial hardship due to the COVID-19 pandemic.

Michigan Small Business Survival Grants to provide critical relief

The Michigan Small Business Survival Grant Program is intended to meet the urgent need of Michigan businesses who have experienced a significant financial hardship due to the COVID-19 emergency “gatherings and face mask order” issued by the Michigan Department of Health and Human Services in December 2020.

The Michigan Small Business Survival Grants will be administered by 15 local or nonprofit economic development organizations (EDOs) covering all 83 counties across the state. A single, statewide application for the program will be live at michiganbusiness.org/survival on 9:00 a.m. EST on Tuesday, January 19 through 12:00 p.m. (noon) EST on Friday, January 22. Grants will be reviewed and awarded by the EDOs based on eligibility requirements and local priorities and objectives, not on a first-come, first-served basis.

Businesses must meet the following eligibility requirements:

• Had 1 to 100 employees (including full-time, part-time and owner/employees) on a world-wide basis on November 17, 2020.
• Is in an industry that demonstrates it is affected by the DHHS epidemic orders.
• Needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses.
• Can demonstrate an income loss as a result of the Order as determined by the EDO in which an eligible business is located.
• Is not a live music and entertainment venue that is eligible for the Michigan Stage Survival grant program.

Individual EDOs may have additional eligibility requirements, which businesses will be able to access from the michiganbusiness.org/survival landing page. EDOs will also have discretion on grant awards up to the maximum of $20,000 for businesses that are fully closed and $15,000 to businesses that have been partially closed, or otherwise are open and can demonstrate an impact.

Participating Economic Development Organizations:

The michiganbusiness.org/survival landing page will also provide businesses with resources to prepare their application, including the application questions and a tutorial video detailing all steps. Businesses must have an account set up in ConnectSpace to submit an application, also linked on the landing page, which can be established prior to applying. For the convenience of applicants, an electronic queue system will also be in effect once again with businesses entering the queue prior to entry into the application. Businesses will be able to sign up to receive an alert when they have reached the front of the queue.

Per statutory requirements, a monthly report will be provided to the legislature that includes a listing of grants awarded in the previous month and the name of the recipient of each grant provided under the program. A full list of grant awardees will be available on michiganbusiness.org/survival.

Michigan Stages Survival Grant Program will offer assistance to Michigan’s eligible live music and entertainment venues

The Michigan Stages Survival Grant Program was also approved by the MSF today. The program will provide a total of $3.5 million in one-time grants of up to $40,000 to eligible entertainment venues throughout Michigan. These funds are to be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses, or costs related to reopening a business.

The application will be available at www.michiganbusiness.org/stages starting at 9:00 a.m. EST on Thursday, January 21- 12:00 p.m. (noon) EST on Thursday, January 28, 2021. The Michigan Independent Venue and Promoter Association (MIVPA) will be responsible for accepting, reviewing and approving applications by February 28, 2021. The MEDC distribute the grant funds based on the recommendation of the MIVPA.

Venues must meet eligibility requirements that include

• Be located in the state of Michigan.
• Produce and/or present live, disciplined-based performance experiences.
• Demonstrate at least 33 percent of 2019 gross revenues are from the sale of tickets for live music or entertainment events OR receive at least 70 percent of its earned revenue through cover charges or tickets sales, production fees or production reimbursements, nonprofit educational initiatives, or the sale of event beverages, food or merchandise.
• Demonstrate second quarter revenues from April 1- June 30, 2020 were not greater than 10% of second quarter revenue from April 1-June 30, 2019.
• Employ less than 30 full time employees.

A full list of application and eligibility requirements is available at michiganbusiness.org/stages. Per statutory requirements, a monthly report will be provided to the legislature that includes a listing of grants awarded in the previous month and the name of the recipient of each grant provided under the program. A full list of grant awardees will be available on michiganbusiness.org/stages.

“We have seen the urgent need for these resources for small businesses across the state, and MEDC is proud to work with our local partners and industry leaders to ensure this funding gets into the hands of businesses efficiently, effectively and with the greatest impact possible,” said MEDC CEO Mark A. Burton. “We continue to stay focused on both immediate relief efforts, and also ensuring we have runway for economic recovery in the coming year through existing efforts around business retention and growth, supporting the entrepreneurial ecosystem and creating vibrant communities throughout Michigan.”

In total, the MEDC has now launched 23 COVID-19 relief and recovery programs that have supported more than 18,500 businesses in the state and helped to retain nearly 147,000 jobs across all 83 counties. To learn more about MEDC’s COVID-19 response programs and the impact they are having on economic recovery efforts, visit michiganbusiness.org/covid19response. Other resources for economic reopening efforts as well as businesses across Michigan struggling with economic losses as a result of the COVID-19 virus can be found online at michiganbusiness.org/covid19.

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Quotes from local partners

Flint & Genesee Chamber of Commerce
“The need for financial support of small businesses remains strong. Funding through the Michigan Small Business Survival Grant provides further relief to small businesses that have struggled mightily during this pandemic-fueled economic crisis to stay afloat,” said Tyler Rossmaessler, director of economic development at the Flint & Genesee Chamber of Commerce.

Lansing Economic Area Partnership
“It is crucial to fill the gap of these next months with financial assistance to help get our small businesses to the spring and summer when the economic and virus situation is likely to be much improved — especially those in the hospitality and entertainment industries,” said Bob Trezise, president and CEO of LEAP. “We continue to be grateful to receive state funds and thank the state legislature, Gov. Whitmer and the MEDC for once again entrusting LEAP with this complex and critical task on behalf of the Lansing region.”

Otsego County Economic Alliance
“The Otsego County Economic Alliance is proud to assist the MEDC in providing critical grant funding to Northeast Michigan small businesses through the launch of the new Michigan Small Business Survival grant program,” said Lisa McComb, executive director of the Otsego County Economic Alliance. “This program comes at a pivotal point when many of our small businesses are struggling to remain open and continue to contribute to our local economies. Grant funding awarded by OCEA to 324 small businesses in six Northeast Michigan counties through the MEDC’s previous MSB Relief and Restart programs was critical in providing gap funds to support our local small businesses.”

Networks Northwest
“2020 was a very challenging time for many businesses and non-profits across Michigan,” said Networks Northwest CEO Matt McCauley. “The Michigan Small Business Survival Fund is intended to support businesses keep their doors open and their workers employed during these difficult times.”

The Right Place
“West Michigan’s small businesses continue to be critically impacted by the COVID-19 pandemic,” said Birgit Klohs, President and CEO, The Right Place, Inc. “As we approach nearly a year of navigating this pandemic the demand for assistance remains high, and the Survival Grants will offer a needed financial lifeline to small business throughout our region.”

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.