The Michigan Financial Improvement Corp. plans to open functions subsequent week for the $58.5 million in grant funding to help small companies and leisure venues that had been closed or curtailed by the newest state-ordered restrictions in response to the COVID-19 pandemic.
MEDC CEO Mark Burton expects excessive demand for the “desperately wanted aid” grants, the state’s newest effort to supply help to small companies.
“There continues to be an awesome want for aid from the financial impression of COVID-19 from small companies all throughout the state. Whereas Michigan continues to see progress from public well being restrictions in comparison with different states, we additionally acknowledge that lots of our small companies have made vital sacrifices over the course of this effort to avoid wasting lives and to repeatedly flatten the curve,” Burton stated throughout a convention name immediately. “In consequence, our small companies proceed to want emergency assist and maybe now greater than ever throughout these winter months.”
Each grant applications — $55 million for small companies and $3.5 million for leisure venues — are additionally based mostly on want and should not first-come, first-served, Burton stated. The MEDC expects funding from authorised grants to start flowing by the top of January.
The Michigan Strategic Fund Board this afternoon voted to formally authorize each grant applications, made obtainable by means of a COVID-19 aid package deal that state legislators enacted in late December and Gov. Gretchen Whitmer signed into legislation.
Underneath the $55 million Michigan Small Enterprise Survival Grant Program that’s modeled after related efforts final yr, the MEDC will work with 15 native financial growth businesses throughout the state to overview functions and award funding.
Small enterprise aid
Purposes for the grants opens at 9 a.m. on Jan 19. The applying course of has a brief window that closes at midday on Jan. 22.
The brief software window for the Small Enterprise Survival Grant Program stems from an expectation that demand will simply outstrip obtainable funding due to a “far, far higher want that exists than any quantity of sources that we’re facilitating,” Burton stated. Prior grant applications to supply aid for small companies shortly depleted obtainable funding, he stated.
A $10 million grant fund in December “very actually was exhausted in minutes,” Burton stated. Given the anticipated “monumental demand,” the MEDC opted to set a brief software interval, he stated.
“We consider that the demand will proceed to be extraordinarily excessive and can proceed to outpace any of the sources we’re making obtainable,” Burton stated. “It’s simply expertise that we’ve seen within the demand for these and maintaining a window open longer. We don’t need to proceed that form of false hope virtually relating to individuals placing in functions effectively past the funds being exhausted.”
Small companies that “have realized a big monetary hardship due to the COVID-19 emergency” and have been quickly closed due to state orders can stand up to $20,000 in grant funding, in keeping with an MEDC memo to Strategic Fund board members. Small companies that remained opened however had their operations restricted are eligible for a grant as much as $15,000.
The grants are for small companies with one to 100 full- and part-time workers and function in an trade affected by state orders that may show a ensuing revenue loss. Grant recipients can use the funding for working capital to cowl payroll, lease, mortgage funds, utility bills or different related bills.
By means of the $3.5 million Phases Survival Grant Program, the MEDC will present $40,000 in grant funding to reside music and leisure venues that had been “negatively impacted by the COVID-19 virus and associated measures to guard public security,” in keeping with a employees memo for immediately’s Strategic Fund board assembly.
Purposes for the Phases grants opens at 9 a.m. on Jan. 21 and closes at midday on Jan. 28.
The Phases Survival Grant Program is designed for music and leisure venues within the state with fewer than 30 workers full time and that had been working as of Feb. 29, 2020. Eligible venues embody people who generated a minimum of 33 % of 2019 gross revenues from reside music or ticket gross sales, or a minimum of 70 % by means of cowl costs, ticket gross sales, manufacturing charges, nonprofit instructional initiatives, or sale of drinks, meals, and merchandise at occasions, and had income within the second quarter of 2020 that was not more than 10 % of the second quarter of 2019.
Venue operators should not have a majority possession by an issuer of securities listed on a nationwide safety trade, or personal venues in multiple nation or in additional than two states.
The Michigan Unbiased Venue and Promoter Affiliation will settle for, overview and approve grant functions on behalf of the MEDC. If awarded underneath the Phases Survival Grant Program, reside music and leisure venues are ineligible for the Enterprise Survival Grant program.