Loan and Grant Program Details Released for Jackson County Small Businesses

(March 28, 2020 11:19 AM) The Enterprise Group of Jackson announced this morning applications will start being accepted on Monday from Jackson County small businesses seeking state assistance as a result of COVID-19. $20 million in emergency funding for small businesses was approved this week by the State of Michigan. The money will go towards a loan fund and a grant program for businesses with less than 50 employees. The Enterprise Group (EG) is administering the program.

There are Small Business Relief Grants and Small Business Relief Loans; the EG provided a summary of both programs:

Small Business Relief Grants and Loans

The Michigan Economic Development Corporation is providing immediate relief to small businesses in Jackson County through the Small Business Relief Program, a funding initiative that will award grants and loans to eligible businesses.

The Enterprise Group will partner with the Michigan Economic Development Corporation (MEDC) and the Greater Ann Arbor Region to help small businesses apply for these funds. The Greater Ann Arbor region (GAAR) was allocated $900,000 from the $10 million MEDC grant fund and Jackson County businesses will be eligible for $142,000 of the GAAR distribution. The MEDC loan fund totals $10 million and will lend eligible borrowers a minimum of $50,000 and a maximum of $200,000.

Key information to know about the application process includes:

There is one application, regardless of whether a business is applying for a grant or a loan. A business may receive a grant or a loan, but not both.
Businesses who do not receive grants may still be considered for loans.
All applications or recommendations for Michigan Small Business Relief Program loans will be referred from The Enterprise Group to the MEDC for evaluation and disbursement.

Are you Eligible?

Businesses with less than 50 employees are eligible for grants.
Businesses with less than 100 employees are eligible for loans.

Eligible Uses For Funding: Grants and loans may be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business.

Michigan Small Business Relief Grants

Grant Amounts Available

$10,000 is the maximum grant that will be awarded per applicant. Grants will be awarded based on demonstrated need until the $142,000 grant funding allocated to Jackson County by GAAR is exhausted.

Eligibility

The company is in an industry outlined in Executive Order 2020-9, or any subsequent Executive Order of similar intent (“EO”), or demonstrates it is otherwise affected by the COVID-19 outbreak, that meets one or more of the following:

provides support to impacted employees
is located in a downtown district or high impact corridor
has 50 employees or less
provides services to companies outlined in the EO and requires additional employees to support the companies or employees impacted by EO
needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business
able to demonstrate an income loss as a result of the EO, or the COVID-19 outbreak

Michigan Small Business Relief Loans

Grant Amounts Available

Loans to eligible borrowers must be $50,000 or more and are capped at $200,000.

Eligibility

has fewer than 100 employees
needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business
demonstrates that it is unable to access credit through alternative sources
demonstrates an income loss of as a result of Executive Order 2020-9

Interest Rate: 0.25% per annum

Term: Interest only for 60 months following loan closing followed by a fully amortizing 60-month term

Repayment Terms: Repayment terms will be determined based on business need and are anticipated to be monthly interest-only payments for the first 60 months following closing. Payments made in excess of interest due will be applied to principal. Once principal is repaid, it may not be redrawn. Payments of principal and interest will begin at 61 months following closing and will be paid monthly with all principal due to be repaid no later than 120 months following closing.

How do I apply?

Please visit www.enterprisegroup.org/msbrp. Applications will be available starting Monday, 3/30/20, and will close on Friday, 4/3/20.