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December 29 2020

Additional Relief Coming for Michigan Businesses With Approval of State Relief Package

By: Michael J. Huff

Governor Whitmer signed a bipartisan bill today to provide relief to small businesses and individuals suffering from the impacts of COVID-19.

In addition to enhancing unemployment relief, the bill (the “State Relief Bill”) appropriates funds for two programs designed to help businesses in Michigan.

1.  Michigan Small Business Survival Grant Program

The State Relief Bill appropriates $55 million to the Michigan Strategic Fund to operate a small business grant program.  The program will be administered by local nonprofit economic development organizations. 

The program is available for businesses which have 100 or fewer employees.  Grants are limited to $20,000 for a business that has been closed or $15,000 for a business that has been partially closed as a result of the gatherings and facemask order.  The funds can be used only for payroll expenses, rent, mortgage payment, utility expenses, and costs related to reopening.

2.  Michigan Stages Survival Grant Program

The State Relief Bill appropriates $3.5 million to the Michigan Strategic Fund to provide grants to live music and entertainment venues which have experienced significant financial hardship as a result of COVID-19.  Grants will be limited to $40,000.00 and must be used only for payroll expenses, rent, mortgage payments, utility expenses, or costs related to reopening.

In addition to the State Relief Bill, federal support for Michigan’s businesses is expected following President Trump’s approval of the COVID relief bill passed by the United States Congress on Sunday evening.  Mika Meyers previously profiled relief available under the federal relief bill here.

All employers, businesses, and other persons are encouraged to contact their Mika Meyers’ attorney or Michael Huff at discuss how to most appropriately use the new relief programs and to assure they remain in compliance with the regulations governing each program.