New COVID-19 relief grants coming for Michigan small businesses
Michigan small businesses in designated industries will soon have access to another $10 million in pandemic relief funding, with the new Pure Michigan Small Business Relief Initiative announced by the Michigan Economic Development Corporation.
Grant funds of up to $15,000 will assist eligible Michigan small businesses directly impacted by COVID-19 to meet urgent working capital needs including payroll expenses, rent or mortgage payments and utility expenses. Applicants must operate 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
- Conference and meeting facilities
- Ice skating rinks, indoor water parks and bowling centers
- Gyms and fitness centers
These federal CARES Act dollars were distributed by the U.S. Department of Housing and Urban Development to the Michigan Community Development Block Grant program. To qualify for grant support, businesses must meet eligibility criteria including but not limited to:
- Being a business in one of the targeted industries listed above
- Must be in compliance with all State and local orders related to COVID-19, including, but not limited, to the Michigan Department of Health and Human Services
- Be a for-profit entity (i.e., a sole proprietorship, partnership, corporation, or LLC)
- Have a physical establishment in the Michigan County of Application and is NOT a home-based business
- Provide goods or services to multiple clients or customers
- Be current, or in a payment plan, on all local, state, and federal taxes due through 1/1/2020
- Have an active and valid state license(s)/registration(s), if applicable
- Is not an adverse party to litigation involving the State or municipality
- Business or Business owner has not filed for bankruptcy in the last 10 years
- Can identify a need for payroll, rent or mortgage payments, and/or utility expenses necessary to continue/restart business operations relative to the total grant amount
- Had annual gross revenues in 2019 greater than $25,000
- Has at least two employees, including the owner(s)
- Has fewer than 50 employees (including full-time, part-time, and owner(s) on a world-wide basis)
It is expected that the funds will be divided into 10 regions around the state, with $3.55 million, or 35.5 percent, being made available to businesses in Macomb, Oakland and Wayne counties. For assistance in applying for this new grant program, please contact a ShindelRock tax professional.