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

The Michigan Strategic Fund on Thursday 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.

The Michigan Small Business Survival Grant Program is intended to meet the urgent need of Michigan businesses that 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 at 9 a.m. on Tuesday, January 19, through noon 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 worldwide 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.

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, and all applicants who are in the queue by noon on Friday, January 22, will have an opportunity to complete the application and be considered for funding.

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.

The Michigan Stages Survival Grant Program was also approved by the MSF on Thursday. 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 a.m. on Thursday, January 21, to noon on Thursday, January 28. The Michigan Independent Venue and Promoter Association (MIVPA) will be responsible for accepting, reviewing and approving applications by February 28. 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.