FINANCIAL SUPPORT

An overview of programs available and where to find additional information and support.  

GRANTS & LOANS

​Federal - New Economic Recovery Act
For a summary of all small business relief assistance provided in the new Economic Recovery Act see this article.

Here is a quick summary of the Paycheck Protection Program (PPP) provisions from Paul Arsenault and Concepts Consulting via InvestUP

• $284 billion for another round of forgivable PPP loans.
• PPP borrowers who already received a loan may obtain a second draw if they have 300 or fewer employees, have used or will use the full amount of their first PPP loan, and can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
• First time PPP borrowers may obtain a PPP loan under the original terms in the CARES Act.
• 60% of PPP loans must be used to cover payroll.
• One-page borrower certification for PPP loans less than $150,000. The SBA must create the simplified application form within 24 days of the bill’s enactment and may not require additional materials unless necessary to substantiate revenue loss requirements or satisfy relevant statutory or regulatory requirements.
• Expands PPP forgiveness to include some worker protection and facility modification expenditures to comply with COVID-19 federal health and safety guidelines.
• Income exclusion and expense deductions for payments made on Section 7(a) SBA loans, including PPP.
• Borrowers with eligible SBA loans will receive an additional 1112 payments for three months of principal and interest starting in February 2021. The payments are capped at $9,000 per month.
• The $10,000 EIDL advance will no longer be deducted from a borrower’s forgiveness amount. The SBA will issue rules to ensure that borrowers are made whole if they received forgiveness and the EIDL advance was deducted from that amount.
• Expenses paid with forgiven PPP loan proceeds are tax-deductible. This overrides previous IRS guidance disallowing deductions for these eligible expenses.

State of Michigan
The final program details have not been released by the MEDC yet, but the following is excerpted from the recently passed legislation that establishes the program. This program will be administered by InvestUp in collaboration with Michigan Works!, the three planning and development regions and all local economic development organizations in the UP.

Small Business Survival Grant Program
Michigan strategic fund will create and operate a small business survival grant program to provide small business survival grants to eligible businesses (roughly $2.5 million available UP-wide). 

Grants made available to eligible businesses under the program must meet all of the following conditions: (a) Must be made available only to eligible businesses that have 100 or fewer employees. (b) Must not exceed $20,000.00 for a business that has been closed or $15,000.00 for a business that has been partially closed as a result of the gatherings and face mask order. (c) Must be used only for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and costs related to reopening a business.

The Michigan strategic fund must develop and post on the Michigan strategic fund website application, program operation, award, and reporting criteria for the program.
(a) “Eligible business” means a business that meets all of the following criteria: (i) Is in an industry that demonstrates it is affected by the gatherings and face mask order. (ii) Needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses. (iii) Demonstrates an income loss as a result of the gatherings and face mask order as determined by the local and nonprofit economic development organization in which an eligible business is located. (iv) Is not a live music and entertainment venue that is eligible for funds under section 401. 11 (b) “Gatherings and face mask order” or “order” means the gatherings and face mask order issued by the Michigan department of health and human services on December 7, 2020 taking effect on December 9, 2020 at 12:01 a.m. through December 20, 2020 at 11:59 p.m. and the order taking effect on November 18, 2020 entitled gatherings and face mask order that it rescinded and replaced. 

TAX RELIEF

EMPLOYEE RETENTION CREDIT
​If you have been able to retain some of your employees you may qualify for a federal tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. 

If you need help assessing if you are eligible for this credit please contact Daniel Yoder at the SBDC (contact info below). 

Retention Credit Info

Match on Main Grant Awarded
Main Street Calumet working in conjunction with the Keweenaw Economic Development Alliance (KEDA) won a grant of $50,000 from the Michigan Economic Development Corporation (MEDC) to support businesses affected by the COVID-19 pandemic. This grant will support nine businesses in our traditional downtown recover from economic injury. 

Got Questions?

There are people available from our local business development agencies to help you get applications completed. They will be working remotely but they are here to help!

Keweenaw Economic Development Alliance (KEDA)
Jeff Ratcliffe, Executive Director
906-482-6817
jeff@kedabiz.com

Small Business Development Center (SBDC)
Daniel Yoder, Senior Business Consultant
​906-231-0417 (text or call) | dayoder@mtu.edu
Sign-Up for assistance and you will receive a phone call to schedule within 1 business day. 

Michigan Works!
Savannah Dougherty, Employer Specialist
​sdougherty@isupward.org
Office: 906-482-6916 x 1606
Cell: 906-280-0216

WORKFORCE RELATIONS

Employers will not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations. 

LAYOFFS

if you've had the difficult task of laying off employees recently or are contemplating it now, review your options on layoffs, temporary leave and work share programs. Follow the link below to a view a presentation on what the state is providing for employers and employees.  

unemployment options

FMLA BENEFITS

Learn more about the expanded coverage provided for covered employees under the Family Medical Leave Act, and the tax credit provided to employers. ​

FMLA PROGRAM

WORK-
​SHARE

The state of Michigan supports employers who can keep workers on by paying part of their wages. Learn more by following the link below. 

work share fact sheet

UNMET
​NEEDS

 If you or someone you know needs food, help paying bills, crisis intervention and many other services you can visit 2-1-1, a clearinghouse for services available in our area. 

2-1-1

Looking for Something Else?

• For a full slate of covid-19 related resources visit the State of Michigan
  
• Daily briefings from the Small Business Association of Michigan (SBAM) can be found HERE.