In February 2022, Governor Whitmer announced the launch of the Growing Michigan Business Grant program. The program has $409 million in funds for businesses continuing to suffer hardships from the COVID-19 pandemic.
Under this program, eligible businesses in operation before Oct. 1, 2019, may receive a percentage of their loss in total state sales through a grant, up to $5 million. Eligible businesses that began operating between Oct. 1, 2019, and June 1, 2020, may receive a grant equal to 25% of certain specified costs. The grants may be prorated depending on the number of businesses that apply to ensure all eligible companies receive funding.
Eligible businesses
Eligible businesses must have been in operation before Oct. 1, 2019, or started operations no later than May 31, 2020, and be currently open for business. In addition, they must meet the following requirements:
- Have a physical presence and conduct business operations in Michigan
- Fall within one of the nine eligible business categories, including:
- Entertainment venues
- Recreational facilities
- Cosmetology or barbershops
- Exercise facilities
- Food establishments
- Nursery dealers and growers
- Athletic trainers
- Body art facilities
- Hotels and other public lodging establishments, such as bed and breakfasts
- Is not tax exempt under the Internal Revenue Code
- Is not a government entity
- Suffered a 5% or greater decline in total Michigan sales between the calendar year 2019 and calendar year 2020
- Include Payroll Protection Program forgiveness, Restaurant Revitalization Grants, and other COVID-related awards in these calculations
Required documentation
Businesses wishing to apply must provide supporting financial documents showing financial hardship and attest to their completeness and accuracy. If applicable, the following documentation is required as part of the application:
- Registration with Michigan Department of Licensing and Regulatory Affairs
- 2020 Michigan unemployment insurance taxes paid
- 2020 Michigan property tax bills and proof of payment
- Lease agreement with 2020 cost shown
- Amount and type of COVID-related forgiveness, grants, or awards already received
- Amount of on-premises retail liquor license fees, license-required inspection fees paid under the Michigan Food Inspection law, and the amount of all other business license or inspection fees
- 2019 and 2020 audited financial statements, if available
- 2019 and 2020 federal income tax returns
- 2019 and 2020 Michigan sales tax and income tax returns
How to apply for the Growing Michigan Business Grant
You can apply on the State of Michigan’s website from March 1, 2022, to March 31, 2022. The state will reach out via email if any additional information is required to process your application.
Grant awardees will be notified in the spring, and grant awards will be distributed by July 1, 2022, via direct deposit to the bank account supplied in your application.
Looking for assistance?
If you’re interested in applying, watch a recording of the informational webinar hosted by Michigan’s Treasury Department. Or register for the upcoming webinar on March 7, 2022.
Our advisors can help you secure the grant funding needed for your business to thrive beyond the pandemic. Whether it’s assisting in gathering the financial documentation required to apply or understanding the related accounting implications, we’re here to help.
