Working in partnership with nine local economic development organizations, the Michigan Economic Development Corporation has awarded $ 4.35 million to 74 small businesses in 40 Michigan counties in the first round of low-interest loans made through the Small Assistance Program. Michigan Companies, MEDC announced today. Today’s support is based on $ 10 million in grants awarded to more than 2,700 businesses through the program last month.
“This is good news for small business owners around the world as we continue to safely re-engage sectors of our economy,” said Governor Gretchen Whitmer. “The COVID-19 pandemic hit our small business owners hard, and we are working around the clock to make sure they have the support they need to move forward. That means making sure they can pay their employees and provide them with the PPE they need to keep themselves, their families and the heroes on the front lines safe. I will continue to work with partners at the state and federal level to ensure that our small business owners can recover. “
The Michigan Small Business Assistance program was authorized by the Michigan Strategic Fund to provide assistance to small businesses adversely affected by the COVID-19 crisis. Loans through the program are intended to support small businesses facing drastic reductions in cash flow and ongoing support of their workforce and can be used as working capital to support payroll expenses, rent, payments mortgage, utility or other similar expenses that occur in the normal course of business. The complete list of businesses that have received loans so far through the Michigan Small Business Assistance Program is available at michiganbusiness.org/msbrp.
“Over the past six years or more, my partners and I have invested a lot of time and capital in starting and growing our small business in rural Michigan’s Upper Peninsula, where resources are always limited. MEDC has been a great partner for us along the way, helping ProNav Marine access many essential business services that would not otherwise be available to us and making it possible to sell and market our products on a global scale. As a young and rapidly growing company, cash flow is always tough, especially in times like these. The economic slowdown in our industry due to COVID-19 had a major impact on our sales during our peak sales season, ”said Travis White, co-founder and CEO of ProNav Marine at Hancock. “The Michigan Small Business Assistance Program provided a lifeline in a time of great need. Without this help, we faced imminent downsizing and potentially even the possibility of going out of business. This would have been a great loss to our small community, as our company is driving innovation and technology and creating manufacturing jobs that are vital to Michigan’s economy. Our entire team is grateful for this program and the access to capital it has provided during this challenging time. “
EDO’s local partners have referred eligible loan applicants to the MEDC, where they are reviewed by a loan review committee that includes the Director of Business Development, the Senior Vice President of Growth and Development and the Senior Vice President of Projects of Commercial development. All loans made through the Michigan Small Business Assistance Program are also approved through the delegated authority of the Michigan Strategic Fund. Additional loans covering the remaining regions of the state are expected to be announced in the coming weeks.
“Thank you very much, we cannot tell you how much this will help our employees. our business, our customers and our community. Without these lifelines, there is no question this business would have failed, ”said Danny and Kim Brown, owners of Skatemore, Inc. (dba) Rollhaven Skating Centers in Flint. “We have been serving the Flint, Grand Blanc and Burton community for over 65 years. Now we can serve you for many years. “
A summary of the loans assigned by the local economic development organization is included in the image at the top and bottom of this story. For UP, InvestUP received $ 500,000 to help eight companies retain 127 jobs.
“Michigan Small Business Assistance Program loans are intended to provide critical capital to support the health and sustainability of the state’s small businesses, communities and workforce,” said Mark A. Burton, CEO of MEDC. “By collaborating with our local economic development partners, we are able to deliver vital financial resources to small businesses throughout Michigan as they work to recover from lost revenue as a result of the COVID-19 virus.”
In addition to the $ 10 million in loan funds, the Michigan Strategic Fund also approved $ 10 million in
Michigan Small Business Aid Program grants administered by 15 local, non-profit economic development organizations (EDOs) throughout Michigan. The EDOs were selected through a competitive process based on the ability to administer the program and ensure coverage for small businesses in all 83 Michigan counties. To view the full list of companies that received MSBRP grants, visit https://www.michiganbusiness.org/msbrp/.
To learn more about the MEDC’s COVID-19 response programs and the impact they are having on economic recovery efforts, visit michiganbusiness.org/covid19response. Other resources for economic reopening efforts, as well as businesses in Michigan struggling with economic losses as a result of the COVID-19 virus, can be found online at michiganbusiness.org/covid19. The MEDC has also developed an FAQ for Michigan businesses and communities at michiganbusiness.org/covid19-faq.
Information about this outbreak is changing rapidly. The latest information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus.