Businesses to receive assistance in revenue loss anticipation
Economic support to be given to small businesses affected by virus
Michigan’s small businesses could soon see some economic relief in the wake of the COVID-19 pandemic.
Earlier this month, Congress passed legislation that makes $1 billion available to the U.S. Small Business Association (SBA) to provide low-interest loans to small businesses, small agricultural cooperatives, and nonprofits that have suffered substantial economic losses as a result of the COVID-19 pandemic. The SBA loans offer up to $2 million in assistance.
On Tuesday, the state’s small business entrepreneurial support organizations joined with the Michigan Economic Development Corporation (MEDC) to help ensure economic support is available to small businesses to overcome anticipated loss of revenue.
According to the SBA, there are over 873,000 small businesses in Michigan that employ nearly 2 million people, most of which are in the health care and social assistance sector (276,124 employees). The state’s small businesses employ around 49 percent of the Michigan’s total workforce. In 2019, Michigan small businesses added over 55,000 jobs.
MEDC CEO Mark Burton said small businesses drive the economies of our communities. He added that the MEDC is working with its partners across the state to ensure small businesses, communities, and entrepreneurs have access to “every possible resource.”
“We understand that they are facing unprecedented challenges,” he said. “We are committed to providing vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.”
On March 16, Gov. Gretchen Whitmer informed the SBA that she is seeking an Economic Injury Disaster Loan Declaration for the state and has initiated the process to receive the declaration from SBA. That application process is expected to be completed this week.
For more information, visit MEDC’s website: MichiganBusiness.org or call (888)-522-0103. The Michigan Small Business Development Center can also provide resources for small businesses impacted by COVID-19. Visit their website https://sbdcmichigan. org/small-business-covid19/ for additional information.