Whitmer announces New Small Business Support Hubs to provide comprehensive resources, grants to state?s small businesses

On Tuesday, Michigan Governor Gretchen Whitmer joined the Michigan Economic Development Corporation (MEDC) to announce the new Small Business Support Hubs program aimed at investing in the state’s small business ecosystem. In Michigan, small business growth has surged with 137,000 new small business applications submitted in 2022.

“Ensuring our small businesses are positioned to grow and create good jobs across Michigan is critical as we continue to grow Michigan’s economy and build a brighter future for our residents,” Whitmer said. “Thriving small businesses are vital to our state’s economy, and these federal funds will provide economically disadvantaged entrepreneurs and small businesses with timely financing to build up their business, create jobs for their friends and neighbors and support their community’s vibrancy along the way.”

Small Business Support Hubs will bring new and more comprehensive resources to small businesses across the state by providing funding to entrepreneurial hubs for operations, programming, and direct support to small businesses. The program will provide up to $6 million in funding to entrepreneurial hubs to invest in regional operations, deployment of a variety of business support services, as well as direct grant support to small businesses who were disproportionately impacted by COVID-19.

The goals of the program are to:

• Support small businesses disproportionately impacted by COVID-19.

• Cultivate a more inclusive, accessible and integrated tech and small business entrepreneurial ecosystem.

• Increase the number of businesses served through new programming, technical assistance, and support services.

• Increase awareness of Michigan’s small business ecosystem.

• Expand the geographic reach of network partners into underserved communities and rural areas.

• Raise the national profile of Michigan’s small business ecosystem.

Eligible applicants are entities that identify as an entrepreneurial hub with physical spaces that provide entrepreneurs with training and resources including one-on-one coaching, consultations, workshops, seminars, incubation activities, and networking and mentorship opportunities and events.

The program received approval today by the Michigan Strategic Fund. In February, the Michigan legislature passed into law the $75 million Small Business Smart Zones and Business Accelerators initiative. This is a one-time appropriation using American Rescue Plan Act (“ARPA”) funds to create and operate programs to support small businesses
disproportionately impacted by COVID-19.

This concept was initially conceived as part of a series of COVID-19 relief efforts for small businesses under Whitmer’s MI New Economy Plan in 2021 and shaped by stakeholder engagement in March and April of this year, led by the MEDC. The team conducted more than 13 virtual feedback sessions that included 120 organizations and individuals representing SmartZones and other entrepreneurial hubs, business service organizations, community development financial institutions, small business owners and independent consultants.

The Michigan Strategic Fund will select grantees through an open and competitive application process. Applications will be accepted from July 10 to September 8. Detailed information will be provided to all interested parties via a webinar on July 11 from 9:30 to 10:30 a.m. and the recording will be made available following the event. More information can be found on michiganbusiness.org.