COVID-19 Michigan and Federal Loan Assistance Update

Date: March 20, 2020

Disaster assistance is available on a limited basis

MICHIGAN GRANT AND LOAN PROGRAM APPROVED

Yesterday, the Michigan Strategic Fund Board approved $20 million in grants and loans for small business. The Small Business Relief Program is intended to provide aid to owners forced to close their stores amid the state mandated COVID-19 shutdown. Money is allocated equally, with $10 million in grant funding and $10 million in loan funding. NFIB recognizes that this amount of money is insufficient and will be working with the Small Business Association of Michigan (SBAM) to obtain additional funding for small business relief.

The criteria to be eligible for a grant include:

  • Less than 50 employees in size.
  • Loss of income must be directly attributed to either Executive Order 2020-9 or COVID-19, in an industry outlined within the executive order or any future order with similar intent.
  • The funds are needed to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses.

 

The criteria to be eligible for a loan include:

  • Less than 100 employees in size.
  • Loss of income must be directly attributed to either Executive Order 2020-9 or COVID-19, in an industry outlined within the executive orders or any future order with similar intent.
  • The funds are needed to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses.
  • Must demonstrate that they are unable to access credit through alternative means.

More information and application instructions can be found HERE.

 

FEDERAL DISASTER LOANS APPROVED FOR MICHIGAN

The Small Business Administration has approved Gov. Whitmer’s request that Michigan small business owners be eligible for federal disaster loans. The Economic Injury Disaster Loan (EIDL) Declaration frees up low-interest loans for small businesses across the state who have been impacted by the coronavirus. You can learn about the SBA loan program HERE.

The Disaster Loans offer up to $2 million in assistance, providing vital economic support for small businesses suffering from a loss of revenue. The loans may be used to pay fixed debts, payroll, accounts payable and other bills they can’t pay because of COVID-19. The interest rate is 3.75% for small businesses. The loans have long-term repayments in order to keep the payments affordable. Longer loans can be up for 30 years depending on the borrower’s ability to pay. 

NOTE: Be aware that the forthcoming COVID 3 or CARES Act legislation will include special Business Interruption Loans. These loans may have better loan terms and conditions (including loan forgiveness for amounts used to meet payroll) than SBA Economic Injury Disaster Loans (EIDL). A Business Interruption Loan and SBA Economic Injury Disaster Loan will not be allowed for the same purpose. Business owners may want to wait for more details on the Business Interruption Loans before taking out an SBA Economic Injury Disaster Loan.

Stay tuned for more information as events develop.

Keep up with the latest news and information on the NFIB special website HERE

 

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