Business Accelerator Fund (BAF) Loan Expansion in Response to COVID-19

The Business Accelerator Fund (BAF) is available to participating business accelerators in Michigan’s statewide SmartZone network.  These funds are used toward the delivery of specialized services that are not otherwise available from these business accelerators, to assist advanced technology companies regardless of the company’s geography.  

By expanding the Business Accelerator Fund, the state is working to ensure entrepreneurs and startups with the capabilities to offer support during the COVID-19 outbreak have the means to do so, while also providing the ecosystem greater economic support in response to the crisis. Altogether, the changes to the BAF program will:

  • Increase the amount of discretionary funds available to business accelerators to more immediately provide services to startups, entrepreneurs and small businesses in need;

  • Expand the permissible use of BAF to include utilities, rent or other services not typically supported through the BAF program;

  • Allow certain non-tech businesses to access services through BAF to support the manufacture or distribution of critical medical supplies and personal protective equipment such as masks, gowns and sanitizer; and

  • Expand company size eligibility requirements and allowable use of funds for tech companies developing innovations that could support COVID-19 response efforts, such as diagnostics, therapeutics, or processes to support the health care system’s response to the virus.

Learn more about the Business Accelerator Fund (BAF) expansion here.

Tech Startup Stabilization Fund Offers Support for Early-Stage Tech Companies 

ID Ventures, with lead support from the MEDC, has launched a fund to help stabilize Michigan startups impacted by the economic downturn caused by the COVID-19 pandemic, extend their runway, and put them on a path to scale when the downturn subsides. The fund will provide loans and investments typically ranging from $20,000 - $100,000 based on the startup’s sector, stage, estimated runway, and demonstration of need. It is expected that the average award will be $50,000. Larger amounts may be awarded in scenarios where justified.

The fund will prioritize investments and loans for early-stage companies that demonstrate the following criteria:

  • Technology-based companies headquartered in Michigan with the majority of employees located in the state

  • Early-stage technology and innovation-based businesses with fewer than 50 employees

  • Strong team that has proven execution capability

  • Prior investment from angel or venture capital sources, with matching angel and or/venture capital funds encouraged

  • Pre-COVID-19, was on path for next round of funding, with favorable relationships in place

  • Strong customer value proposition

  • Conveys that company can survive and thrive post-crisis

Learn more and apply for the Tech Startup Stabilization Fund (TSS).

Information for Manufacturers Looking to Produce PPE/Medical Supplies amid COVID-19 health crisis

If you're a manufacturer interested in producing Personal Protective Equipment (PPE) or other medical supplies and equipment during the COVID-19 health crisis, we recommend reviewing this comprehensive guide to product specifications for urgently needed items.

 

If you review the COVID-19 Product Specification guide and determine you are able to manufacture needed PPE/Medical Equipment during this time, contact The Right Place, Inc. business development team at PPEequip@rightplace.org for assistance with getting started.

U.S. Small Business Administration: Economic Injury Disaster Loans (EIDL)

The U.S. Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans (EIDL) for businesses and private non-profits in declared zones.

What is EIDL?

The EIDL is a low-interest, fixed-rate loan that can provide up to $2 million in assistance for a small business. SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury. Applicants do not go through a bank to apply, and instead, apply directly to SBA’s Disaster Assistance Program.

Actual loan amounts are based on the amount of economic injury. These loans provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing because of COVID-19. The EIDL helps meet the necessary financial obligations that your business or private non-profit organization could have met had the disaster not occurred. EIDLs do not replace lost sales or revenue.

Eligible Businesses: The EIDL provides up to $2 million of financial assistance to small businesses or private, non-profit organizations that suffer substantial economic injury as a direct result of the declared disaster. This includes:

  • Businesses directly affected by the disaster

  • Businesses that offer services directly related to the businesses in the declaration

  • Other businesses indirectly related to the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product.)

To find more information and apply, visit sbdcmichigan.org/disaster-loan-help

U.S. Small Business Administration: Michigan Paycheck Protection Program

The Michigan Paycheck Protection Program (MiPPP) provides small businesses in Michigan COVID-19 relief, giving funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

Eligible Businesses: Michigan small businesses with 500 or fewer employees—including nonprofits, veteran organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— affected by COVID-19 are eligible. Michigan businesses with more than 500 employees are eligible in certain industries.

Application Window: Eligible businesses are able to apply for MiPPP as of April 3, 2020. Businesses are encouraged to apply as quickly as they can because there is a funding cap.

How to Apply: Paycheck Protection Program loans are only available through your local SBA certified bank or credit union. Start by calling your existing bank or credit union, or take a look at our list of financial institutions in Michigan already approved by the SBA. A copy of the application form can be found here, so you can get a head start on the process.

To find more information and apply, visit paycheckprotectionprogrammichigan.com

Paycheck Protection Program (PPP) Loan Forgiveness

The Small Business Administration, in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. Guidelines for PPP loan forgiveness are to be released soon. 

View the PPP Loan Forgiveness Application here. 

Save Small Business Fund Launched to Help Small Employers Who are Struggling During the COVID-19 Outbreak

The Save Small Business Fund is a grant-making initiative offering short-term relief for small employers in the United States and its territories. Funded by corporate and philanthropic partners, the fund is a collective effort to provide $5,000 grants to as many small employers as it can. 

 

To qualify you must:

 

Find more information, check your zip code eligibility and apply at savesmallbusiness.com.

CARES Act Provisions Most Relevant for International Council of Shopping Centers (ICSC) Members

The document below outlines provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that are most relevant to ​International Council of Shopping Centers (ICSC) members. 

View the final summary of provisions in the CARES Package Most Relevant to ICSC members

CARES Act Provisions for Small Businesses

The main features for small businesses are emergency grants and a forgivable loan program for companies with 500 or fewer employees. There are also changes to rules for expenses and deductions meant to make it easier for companies to keep employees on the payroll and stay open in the near-term. 

 

Emergency grants: The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.

Forgivable loans: There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

 

Relief for existing loans: There is $17 billion to cover six months of payments for small businesses already using SBA loans.

CARES Act Provisions for Big Businesses

The bill sets aside roughly $500 billion in loans and other money for big corporations. These companies will have to pay the government back and will be subject to public disclosures and other requirements.

Airlines: About $58 billion is allocated to help airlines stay open. One portion of that money is set aside to help cover employee wages, salaries and benefits divided up as up to $25 billion for passenger air carriers, up to $4 billion for cargo air carriers, and up to $3 billion for airline contractors.

Stock buyback ban: Any company receiving a loan under the program is barred from making stock buybacks for the term of the loan plus one year.

Reporting requirements: All loans, their terms and any investments or other assistance provided by the government must be publicly disclosed.

Oversight: The bill creates a special inspector general to oversee pandemic recovery. That person, along with a special committee, would provide oversight of all loans and other uses of taxpayer dollars.

All businesses: The bill establishes a fully refundable tax credit for businesses of all size that are closed or distressed to help them keep workers on the payroll. The goal is to get those employees hired back or put on paid furlough to make sure they have jobs to return to. The credit covers to 50 percent of payroll on the first $10,000 of compensation, including health benefits, for each employee.

For employers with more than 100 full-time employees, the credit is for wages paid to employees when they are not providing services because of the coronavirus. Eligible employers with 100 or fewer full-time employees could use the deduction even if they aren't closed.

U.S. Small Business Association 7(a) Lenders in Michigan 

Funds related to the Federal CARES Act will be accessed by small businesses (less than 500 employees) through the US Small Business Association’s (SBA) 7(a) program. The 7(a) program offers loan and is an all-inclusive loan program deployed by lending partners for eligible small businesses within the U.S. States and its territories. The uses of proceeds include: working capital; expansion/renovation; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business.

 

Click the link below to download an Excel list of financial institutions in Michigan that are already approved for the SBA 7(a) program.

View a list of financial institutions in Michigan already approved for the SBA 7(a) program

Consumers Energy Delivering Support for Small Businesses During the Coronavirus Crisis

If the Coronavirus (COVID-19) pandemic has made it challenging to meet basic businesses expenses such as rent, payroll or utility bills. Small business customers can call 800-805-0490 to get assistance with their energy bills and to learn about additional short-term resources.
 

View a quick reference sheet from Consumers Energy on how they can help and other useful resources.

Michigan Senate Seeking Feedback from Business Owners for Economic Reopening Planning Process

The Safe Behavior for Safe Workplaces work group, a bipartisan effort in the Michigan Senate, has been formed to contemplate how Michigan can begin to safely reopen our economy once health experts agree it is appropriate to do so. The work group is seeking input from businesses and job providers around the state. Visit the link below to fill out the survey. 

Take the survey from the Michigan Senate Safe Behavior for Safe Workplaces work group. 

MIWISH Grants Available for Small Employers

The MIOSHA Workplace Improvement to Safety and Health (MIWISH) Grant Program awards qualifying employers a dollar-for-dollar match – up to $5,000 – to purchase safety and health-related equipment and equipment-related training.  The goal of the program is to create a safer and healthier work environment and reduce the risk of injury and illness to workers in Michigan. 

More information and the application can be found at michigan.gov/mioshagrants. 

Michigan Women Forward Launches $1.5M Michigan Entrepreneur Resilience Fund

Michigan Women Forward, in partnership with the Michigan Economic Development Corporation (MEDC), New Economy Initiative (NEI), Michigan-based foundations, corporate partners, individual donors, and in collaboration with the SBA, has secured funding to provide recovery grants and loans to diverse entrepreneurs and small businesses from underrepresented groups in Michigan.

The Michigan Entrepreneur Resilience Fund is intended to assist geographically and demographically disadvantaged individuals through two primary avenues of funding: grants and microloans.

 

ELIGIBLE CANDIDATES WILL BE PRIORITIZED BASED ON DEMONSTRATED NEED, INCLUDING, BUT NOT LIMITED TO:

  • Being located in a disadvantaged area within a U.S. Small Business Administration designated HubZone or Opportunity Zone;

  • Demonstrating status as a low- to moderate-income borrower;

  • And qualifying as a diverse business that can demonstrate ownership by underrepresented groups including, but not limited to, veterans, minorities and low-income men and women.

     

Applications will be available May 12 and accepted on a rolling basis until funds are exhausted. Applications will be prioritized according to funding need and prospect for a successful recovery.

Learn more about eligible businesses and application requirements at miwf.org/mwf-entrepreneur-resilience-fund

 

 
 
 
 
 
 

PPE Available to Small Businesses at No Cost 

As employers reopen across Kent County, personal protective equipment (PPE) will be a critical component in helping to protect employees, visitors, clients and customers from the spread of COVID-19. Our program will provide PPE to qualifying small businesses and other employers, at no cost, to assist in reopening their operations. Available PPE includes eye and face protection, gloves, hand sanitizer and thermometers. The Board of Commissioners has allocated $2 million of the County’s CARES Act funding to launch this program.

To qualify, employers must be located in Kent County and must employ 100 people or fewer.

Qualifying employers may begin placing PPE requests on Tuesday, June 2. All qualifying requests received by 11:59 p.m. on Thursday, June 4 will be entered into a random selection process. The first-round lottery selection will take place on Friday, June 5, and we will begin filling requests on that date.

Employers can place requests online starting today, or they may call our fulfillment company partner at (616) 245-3636 between the hours of 8 a.m. and 3 p.m., Monday through Friday, beginning tomorrow, June 2. If the line is busy, the caller may leave a message with their contact information, and a representative will return the call to take the request. Calls are taken either in English or Spanish.

Begin the request form here. 

 
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