In the face of workforce disruption, revenue reductions, supply chain problems and economic upheaval related to the COVID-19 crisis, locating financial assistance is more crucial than ever. MMA’s new COVID-19 Financial Relief Tool Kit has detailed information on the emerging federal and state programs that you could qualify for.

$100 Million Available to Support Michigan Small Businesses in COVID-19 Recovery

The Michigan Small Business Restart Program has $100 million in federal funding available to provide grants to businesses with 50 or fewer employees beginning Wednesday, 7/15/20. Additional details have been shared by the Michigan Economic Development Corporation (MEDC) through this “Frequently Asked Questions” document.

A small business may qualify for the Michigan Small Business Restart Program if they have not received a grant from the Michigan Small Business Relief Program and if they:

  • Demonstrate that the company was affected by the COVID-19 emergency
  • Show a loss of income as a result of COVID-19
  • Need working capital to support eligible expenses

A single, statewide application for the program is available at michiganbusiness.org/restart from July 15 and running through August 5. Grants of up to $20,000 will be distributed through 15 local economic development organizations to small businesses. All grant applications will be considered after August 5 — the program will not be run on a first-come, first-served basis.

MEDC projects that more than 5,000 companies will benefit from the program. To ensure equitable opportunity across the state, at least 30% of funds will be directed to women-owned, minority-owned or veteran-owned businesses.

Contact MMA’s Mike Johnston, at 517-487-8554 or johnston@mimfg.org for more information on relief funding opportunities and MMA’s efforts to support Michigan manufacturers as they work to recover from the ongoing impacts of the COVID-19 pandemic.

On 6/3/20, the U.S. Senate passed the U.S. House’s the Paycheck Protection Flexibility Act unanimously. The legislation was initiated to address business concerns with the Paycheck Protection Program (PPP). The modifications include:

  • Extending the time period for which businesses must spend the proceeds from the loan to 12/31/20 — extending the program by an additional 16 weeks;
  • Grants payroll expense flexibility by changing how PPP loan dollars must be allocated. Originally, the program required that at least 75% go toward payroll, the modification lowers the payroll threshold to 60%, meaning businesses may spend up to 40$ of its loan on other eligible expenses now;
  • Removes penalties for reduced headcount because businesses are still facing workforce challenges; and
  • Removes limitations on other tax deferment programs. Under the initial plan, a company that utilized the PPP loan would not be able to receive the benefits of payroll tax deferment. The changes under the new bill now remove that restriction.