Reduction is coming to Michigan companies after a board final week accredited $58.5 million in grants for financial losses as a result of coronavirus pandemic.
LANSING, Mich. — Reduction is coming to Michigan companies after a board final week accredited $58.5 million in grants for financial losses as a result of coronavirus pandemic that has strained the state’s economic system.
Gov. Gretchen Whitmer final month signed into law a spending plan to assist restore the financial influence from the coronavirus. It included an allocation to the Michigan Strategic Fund below the Michigan Financial Growth Corp. to distribute grants to eligible companies.
The board accredited two packages to distribute funds throughout a gathering on Thursday: the Michigan Small Enterprise Survival Grant Program to assist companies that needed to shut or partially shut in the course of the pandemic; and the Michigan Levels Survival Grant Program to assist companies pay staff who had been laid off.
Funds from each packages can be utilized for payroll bills, constructing bills and different enterprise associated bills.
The Michigan Small Business Survival Grant Program will award $55 million in grants of as much as $20,000 for small companies that had been pressured to shut and grants of as much as $15,000 for the companies partially closed.
To be eligible for a grant, companies should have had one to 100 workers on Nov. 17 and present the influence pandemic restrictions had on them.
With COVID-19 persevering with to influence companies, particularly eating places which are restricted to outside eating attributable to well being orders, small enterprise homeowners like Ginny Sherrow, co-owner of Fenton Vineyard & Brewery, are in search of assist. Although her enterprise has outside seating and provides takeout, winter climate is hitting Fenton in Genesee County and it’s getting tougher to cowl working prices.
“We have now utilized for each single grant that has come out of any authorities entity or group since March,” Sherrow mentioned. “Though we’ve utilized to every little thing, we haven’t but been awarded something. We have to use that cash to pay our property taxes, that are due right here to our native township.”
The Michigan Stages Survival Grant Program will award grants of as much as $40,000 to assist leisure venues, for a complete of $3.5 million.
To be eligible, venues should usually produce or present stay performances. They need to additionally make use of lower than 30 full-time workers and may’t apply for the Michigan Small Enterprise Survival Grant Program.
Program functions will open Tuesday and shut Friday. Grants might be distributed by Feb. 28, however may come as quickly as Jan. 29.
The grants should not first-come first-serve, in contrast to a $10 million strategic fund program in December when greater than 22,000 small companies raced for about 650 grants. Sherrow mentioned business leaders referred to as it, “The Starvation Video games for small companies.”
Via the strategic fund the Michigan Financial Growth Corp. has awarded $180 million in grants to help greater than 18,500 small companies over the previous 10 months, company President Mark Burton mentioned throughout a media name earlier than the strategic fund board assembly.
“As this pandemic continues, we stay dedicated to main a powerful financial restoration in Michigan, to make sure our state’s 10 million residents and its companies obtain the help and reduction they want, not solely to outlive, however to develop lengthy after this pandemic is over,” Burton mentioned.
Grants are only a “drop within the bucket”, Sherrow mentioned, they usually can solely assist so many individuals.
What’s wanted is significant long-term modifications for all enterprise homeowners, not simply those that can rating a grant she mentioned.
Firstly of the 12 months, Whitmer vetoed a bill that might have eradicated penalties for companies who waited to pay their 2020 summer season property taxes. Whitmer mentioned the Legislature strayed from agreements they’d made earlier about financial reduction spending so she vetoed just a few traces within the total spending bundle.
“That will have helped each single small enterprise proprietor and small enterprise within the state mechanically as an alternative of getting us battle for grant funds,” Sherrow mentioned. “If we get the mortgage, it’s simply barely sufficient to pay our property taxes, so it’s going to go from the state authorities to the native authorities.”
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