On July 7, 2020, the Michigan Strategic Fund approved the Restart Program, following the signing of SB690 by Governor Whitmer, which appropriates $100 million of federal CARES Act funding to assist Michigan small businesses directly impacted by COVID-19. The Restart Program is a new program that follows a March 2020 predecessor relief program that had quickly run out of funds. Under the Restart Program, eligible small businesses negatively impacted by COVID-19 and needing working capital for payroll expenses, rent, mortgage payments, utility expenses or other similar expense, can apply for grants of up to $20,000 from local economic development organizations (“EDOs”).

A for-profit or nonprofit company that has 50 employees or less total employees worldwide (not FTEs) located in Michigan is eligible to apply provided it can establish it: (1) is in an industry that has demonstrated it is affected by the COVID-19 crisis; (2) has incurred income loss as a result of the crisis, as determined by the Michigan Strategic Fund; (3) needs working capital for “Eligible Expenses”; and (4) has not received or been approved to receive a grant under the March 19, 2020 Michigan Small Business Relief Program. Grants must be used for expenditures incurred between March 1, 2020 and December 30, 2020 that are considered “Eligible Expenses”, which are: (1) those necessary expenditures incurred due to the public health emergency with respect to COVID-19 (e.g., resulting from employment or business interruptions); and (2) used for working capital to support payroll expenses, rent, mortgage payments, utility expenses, costs related to reopening the eligible business, or other use authorized under the CARES Act.

At least 30 percent of the awards will go to women-owned, minority-owned or veteran-owned businesses.

Successful grants will be announced no later than September 30, 2020. The Michigan Economic Development Organization expects that more than 5,000 Michigan businesses will benefit under the program.

Small businesses that meet the eligibility requirements should apply for the grants as soon as possible, since experience dictates that these funds run out very quickly. Applications will be taken online at: http://www.michiganbusiness.org/restart

For more information, please see: https://www.michiganbusiness.org/about-medc/covid19/agsafety/

Authored by: Michael Vecchioni

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Michigan Small Business Grants

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