On July 8, 2025, the Michigan Department of Labor and Economic Opportunity (LEO), in partnership with the Michigan Center for Employee Ownership (MICEO), launched a new $500,000 pilot program designed to expand access to employee ownership for Michigan’s businesses and workers. This new program comes at a pivotal time for small businesses in Michigan and across the country, as more and more owners are looking to retire but don’t have a plan for succession.

Employee ownership can be a great answer to that succession question. Through employee ownership, a small business can secure their legacy through workers gaining an ownership stake in the company, often through stock or equity. This also helps create an avenue for wealth building and job security for those employees who participate.
Exit planning is important not just for owners looking to retire, but for their small business and their community. It is something that has not been at the forefront of business owners’ minds. Nationwide, 75% of business owners plan to exit within the next 10 years, but only 34% have a documented and communicated succession plan. This leads to fewer than one third of business owners successfully selling their company.

This pilot program through the MICEO provides funding for feasibility studies, valuation services, legal services, and other support to assess the potential for employee ownership. Additionally, if you decide to apply but do not qualify for some reason, this department can help guide you through the process.

If you are interested in applying for the program, please visit the MICEO website for more information.