This program will utilize federal CARES Act funding to provide a total of $10 million in grants to meet the urgent need of Michigan small businesses disproportionately impacted by the COVID-19 virus.
Grants will be awarded in an amount of up to $15,000 per eligible business on a first-come, first-served basis. The application window will open on December 15, 2020.
Grant funds may be used to meet urgent capital needs, including payroll expenses, rent or mortgage payments and utility expenses in the following industries:
- Restaurants, bars and other food and beverage service providers
- Travel and tourism destinations including lodging providers
- Live event venues and movie theaters
- Gym and fitness centers
- Bowling centers, ice staking rinks and indoor water parks
- Conference and meeting facilities
To be eligible, a small business must —
- Be a for-profit entity (sole proprietorship, partnership, corporation or LLC)
- Provide goods or services to multiple clients or customers
- Have had gross revenues in 2019 greater than $25,000
- Identify a need for payroll, rent or mortgage payments and/or utility payments necessary to continue/restart business operations
- Have at least two employees (including an owner) and fewer than 50 full-time and part-time employees
- Have a physical establishment in the Michigan county of the application (i.e., it cannot be a home-based business)
In addition, a business must be current, or in a payment plan, on all local, state and federal taxes due through January 1, 2020. Further, the business and business owner must not have filed for bankruptcy within the last ten years.
Applicants will be required to self-certify that they are following all state and local orders related to COVID-19, including, but not limited to, those issued by DHHS and county health departments.
More information may be found at the MEDC website.
About the author
Jason W. Bank is the chair of the firm’s Bankruptcy and Restructuring department. He focuses his practice in the areas of commercial bankruptcy, out-of-court workouts, corporate restructuring and creditors’ rights. Jason has successfully guided numerous businesses through out-of-court restructurings and Chapter 11 reorganizations. He has negotiated resolutions of complex financial issues and debtor-creditor disputes and achieved consensual restructurings while avoiding bankruptcy or litigation.
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