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

$100 million in federal funding was approved today for the Michigan Small Business Restart Program, which will provide grants to businesses with 50 or fewer employees working to recover from the COVID-19 crisis. Grants of up to $20,000 will be distributed through 15 local economic development organizations to small businesses, with an application period running from 7/15/20 through 8/5/20.

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

Funding is available on a first-come, first-served basis and the Michigan Economic Development Corporation (MEDC) projects more than 5,000 companies will benefit from the program. At least 30 percent of the funds awarded must be provided to women-owned, minority-owned or veteran-owned eligible businesses. More information about this grant program is available at michiganbusiness.org/restart.

An additional $15 million in federal funding was also approved today to help Michigan’s agricultural sector and food processors to mitigate the risks of COVID-19 virus in the state’s food production industry. Processors and farms can apply through GreenStone Farm Credit Services starting 7/15/20 for grants of up to $1,000 per employee for virus mitigation costs, including testing, personal protective equipment (PPE), facility needs, increased sanitation costs and employee training. Grant criteria, eligible expenditures and  more can be found at michiganbusiness.org/agsafety.

Contact MMA’s Mike Johnston, at 517-487-8554 or johnston@mimfg.org, regarding these grant programs and other 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.