Labor and Economic Opportunity
FOR IMMEDIATE RELEASE
September 29, 2020
Contact: Kathleen Achtenberg, firstname.lastname@example.org
More than 11,300 businesses across Michigan already awarded grants through Michigan Small Business Restart Program
LANSING, Mich. – More than 11,300 small businesses and nonprofits across Michigan have been awarded $69 million in grants by local economic development organizations as of September 10, 2020 through the Michigan Small Business Restart Grant Program, the Michigan Economic Development Corporation announced today. The program was launched to provide relief for small businesses that have been negatively impacted by the COVID-19 pandemic.
“Over the past six months, small business owners who have spent their entire lives building their businesses have made incredible sacrifices to protect their communities and our brave frontline workers from COVID-19. I know it hasn’t been easy, which is why we’re working around the clock to provide support for our small business owners. The Michigan Small Business Restart Program is providing much-needed relief to those small businesses and nonprofits hardest hit by the impact of COVID-19 as they work to recover from the pandemic,” said Governor Gretchen Whitmer. “This program puts federal funding to work for Michigan’s small businesses and builds on additional COVID-19 business relief efforts offered by the MEDC to create a strong foundation for Michigan’s long-term economic recovery.”
Approved in July, the Michigan Small Business Restart Program allocated $100 million of federal CARES Act funding to provide support to Michigan’s small businesses and nonprofits that are reopening and have experienced a loss of income as a result of the COVID-19 crisis. The funding was distributed across 15 local or nonprofit economic development organizations (EDOs) covering all 83 counties in the state for grants up to $20,000 to support certain small businesses and nonprofits that have realized a significant financial hardship as a result of the COVID-19 pandemic.
As of September 10, $69 million in grants have been awarded, with all remaining grants to be awarded by September 30, 2020 and reported by mid-October. At least 72,950 jobs have been retained for Michigan workers through these initial grant awards. Of the businesses to receive an award to date, 3,030 reported as minority-owned, 4,365 reported as woman-owned, and 550 reported as veteran-owned, with some businesses selecting multiple categories. At least 30 percent of the funds awarded under the program were required to be provided to women-owned, minority-owned or veteran-owned eligible businesses, and all EDOs are on track to meet, or exceed, this requirement in the awards being made.
“The Michigan Small Business Restart Program is providing a significant opportunity to address immediate needs of small businesses and nonprofits as they work to recover from the impacts of COVID-19,” said Michigan Economic Development Corporation CEO Mark A. Burton. “We are proud to work with our economic development partners to deliver these vital financial resources and create a path toward economic recovery for small businesses throughout Michigan.”
The grants under the Michigan Small Business Restart Program may be used as working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses.
Facial spa Skin Bar VII of Detroit was awarded a grant through the Detroit Economic Growth Corporation, and the funds have helped the newly-opened business weather the COVID-19 pandemic and put them in a position to hire more employees in the future, according to owner Sevyn Jones.
“Skin Bar VII opened late last year on Detroit’s Avenue of Fashion,” Jones said. “We were just hitting our stride when the COVID-19 crisis hit. We have been blessed to received funding from both relief grant programs. As a result, we are open today both online and at our store on Livernois practicing newly implemented cleaning, health and safety regulations. As our customer traffic increases, we are looking to hire additional employees as we adjust to the new normal.”
To qualify for grant support, businesses had to meet the following criteria, based on statutory requirements for the program:
Selected EDOs were responsible for reviewing applications of small businesses in their region and ultimately determining grant awards through the program. Each EDO established a review committee that could include representatives from local workforce agencies, local SBDC representatives, business and nonprofit leaders, among others. The full list of EDOs administering Michigan Small Business Restart grants, the counties they served, and the number of businesses supported is below.
To see the full list of businesses that were awarded Restart grants as of September 10, 2020, visit here.
Paint a Pot, a paint-your-own pottery shop in Holland, was awarded a $20,000 grant, and owner Kerri DeVries said the funds could not have come at a better time.
“Our local pottery shop was hit hard by spring shutdowns brought on by COVID-19,” DeVries said. “The Michigan Restart Grant is exactly what our company needed to jump-start our recovery. This funding will allow us to serve more customers by extending our hours, adding staff, and utilizing more space in our building – just in time for our busy holiday season.”
The Michigan Small Business Restart Program is modeled after the Michigan Small Business Relief Program, approved on March 19 by the Michigan Strategic Fund to support small businesses impacted by the COVID-19 crisis.
The Michigan Small Business Relief Program consisted of a total of $20 million aimed at supporting businesses in need of immediate relief. The program included $10 million that was distributed to 15 local EDOs to provide grants up to $10,000 to certain small businesses impacted by COVID-19. Additionally, the program authorized $10 million for small business loans of not less than $50,000 and not more than $100,000 to eligible borrowers impacted by COVID-19 that were not able to seek alternative, suitable financing.
Prior to today’s announcement, the MEDC had launched 19 COVID-19 relief and recovery programs expected to support up to 10,000 businesses in the state and helping to retain more than 21,000 jobs across all 83 counties. To learn more about 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 across Michigan struggling with economic losses as a result of the COVID-19 virus can be found online at michiganbusiness.org/covid19.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on Facebook, Instagram, LinkedIn and Twitter.
# # #
Quotes from local partners
Detroit Economic Growth Corporation
“The Michigan Restart grant program is helping Detroit businesses remain open, adapt and grow during these uncertain economic times,” said DEGC Vice President Pierre Batton. “Several of our Detroit small businesses are using COVID relief funding to digitize, scale, hire back employees and adhere to health and safety protocols. This grant program provides a lifeline for Detroit small businesses, which are the backbone of our economy.”
Flint & Genesee Regional Chamber
“Judging from the number of heartfelt messages the Flint & Genesee Chamber has received from the grantees who were awarded funding, the impact of the Michigan Small Business Restart Program on our region is clear as a bell,” said Tyler Rossmaessler, the Chamber’s director of economic development. “For many of these owners, the program truly delivered a lifeline of support.”
"Throughout the unprecedented times we have made it a priority to engage our business community and develop inventive ways to stabilize our economy and community,” said Macomb County Executive Mark Hackel. “They have stepped up in so many ways to be part of the solution, and these critical resources from the MEDC will aid in our continued response.”
Lansing Economic Area Partnership (LEAP)
“LEAP is thrilled to assist more than 400 local small businesses and nonprofits from across our three-county area, to survive this historic crisis and prepare to thrive moving forward. We found the right balance as a community, to best strengthen the entirety of our economy now and into the future. I want to thank the federal and state legislatures, Governor Whitmer, the MEDC and especially 70 local reviewers who made this all happen. It was a remarkable effort from all perspectives and LEAP was proud to lead the way in the Lansing region,” Bob Trezise, president and CEO of the Lansing Economic Area Partnership (LEAP).
Middle Michigan Development Corporation
“The Restart grant program is proving to be a lifeline for so many of our small businesses and nonprofits within the mid-Michigan area,” said Middle Michigan Development Corporation President and CEO James McBryde. “Many thanks to the Michigan Legislature and to the MEDC for making this program available.”
Southwest Michigan First
Southwest Michigan First CEO and Senior Partner Ron Kitchens cannot remember a time that funding was more critically needed in his career. “The pandemic has intensified the importance of jobs to local economies, peoples’ livelihoods and their sense of well-being. Only by protecting our small businesses can we ensure the ability of all to grow and prosper,” said Kitchens. “The State of Michigan and Michigan Economic Development Corporation have done an excellent job of developing a suite of financial assistance options, like the Michigan Small Business Restart Program, to keep the doors of small businesses open. We thank everyone who participated in this process. The impact we are having could not have been made without our partners at the MEDC and MSF, other Southwest Michigan EDOs, and in particular, Governor Whitmer.
“We congratulate the recipients receiving allocations from this program. At Southwest Michigan First, we believe that the greatest force for change is a job, and we thank today’s recipients for keeping as many people employed as possible during this unprecedented time. We truly wish we could have supported all requests, but demand outnumbered our available pool of money 6:1,” continued Kitchens. “But there’s more that can be done—that everyone can do. We all must shop and eat local during this time and support these small businesses that make our region a remarkable place in which to live and work.”
“We are grateful to the MEDC and all of our state and federal legislative leaders for making this funding a priority,” said Jennifer Owens, President of Lakeshore Advantage. “There are thousands of small businesses and nonprofits here on the lakeshore that are the heartbeat of our communities. While the demand is very high and there are limited funds, this grant provided hundreds of businesses with critical working capital needed to remain viable, to adapt and to thrive despite the challenges of this new COVID-19 reality.”
The Right Place
“The Right Place and our regional partners have made more than $9 million in grants to critically impacted small businesses in West Michigan,” said Birgit Klohs, President and CEO, The Right Place, Inc. “These funds are offering a financial lifeline to our small companies and we are pleased that over half of these grants were awarded to women, minority, and veteran-owed small businesses.”
“We received more than 700 applications for Saginaw County, which demonstrates the tremendous need of our small businesses and non-profits,” said Saginaw Future Vice President Tom Miller, Jr. “Special thanks to the Saginaw Community Foundation, bankers, credit union representatives and community leaders who scored each of the applications. We were able to stretch the grant funds to cover about half the applications and are hopeful that more funds will be secured as well.”