- Fund open to small businesses with fewer than 50 employees
- Eligible businesses can receive up to $10,000
- Fund part of MEDC initiative to provide Michigan small businesses $20 million in grants and loan assistance
- Online applications for Detroit businesses to open next week; grants to be distributed by mid-April
DETROIT – The Detroit Economic Growth Corporation today announced a collaboration with the Michigan Economic Development Corporation (MEDC), Wayne County and the City of Detroit to help Detroit small businesses survive the economic impact of the COVID-19 crisis. Through the Michigan Small Business Relief Program, the City of Detroit and Wayne County have been allocated $1.6 million to be distributed to small businesses throughout the area. Specifically, DEGC will program funds to support Detroit businesses facing drastic reductions in cash flow as a result of COVID-19.
“Small businesses are the backbone of our community,” said DEGC President & CEO Kevin Johnson. “Losing these businesses would devastate Detroit neighborhoods. With both our private and public partners, we’re working to get cash to businesses now – when they need it – as part of DEGC’s overarching plan to sustain businesses during the health crisis.”
In order to qualify for grant support, businesses must meet the following criteria:
- The business is among the type outlined in Executive Order 2020-9 and demonstrates a negative impact resulting from COVID-19
- The company has 50 or fewer employees
- The company needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur regularly
- The company is able to demonstrate an income loss as a result of the “Stay at Home” order or the COVID-19 outbreak
The grant program has been crafted to give the state’s small businesses a fighting chance to get back on track after being impacted by COVID-19, according to Pierre Batton, Vice President of DEGC Small Business Services.
“Businesses need help with a variety of expenses,” he said. “They will be able to layer this grant with other resources available to maximize the relief they can receive.”
For those businesses not eligible for grant funds, MEDC has also established a loan fund. Statewide, MEDC’s relief program will provide up to $20 million in loans and grants to support small businesses — $10 million of which will be earmarked for small business grants. For additional information regarding the State of Michigan’s resources relative to COVID-19, please visit www.michiganbusiness.org/covid19. The DEGC expects additional contributions to its grant fund in the coming days. Its Small
Business Services staff will be coordinating submissions and processing applications for Detroit businesses. Through the Detroit Economic Growth Association Board, the DEGC is also acting as fiduciary for the Wayne County grant fund. Applications for Detroit businesses will open early next week. A specific DEGC COVID-19 relief portal will be set up to process applications. At that time all Detroit small businesses are encouraged to apply. Information about other resources are available on the DEGC COVID-19 Relief webpage.
Individual Business/Grant Application Questions or Assistance:
Pierre Batton, Vice President, Small Business Services
Detroit Economic Growth Corporation
About the Detroit Economic Growth Corporation (DEGC)
Detroit Economic Growth Corporation (DEGC) is a non-profit organization that serves as the
lead implementing agency for business retention, attraction and economic development initiatives in Detroit. DEGC is led by a board comprised of business, civic, labor and community leaders. Its staff provides services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. DEGC also manages important initiatives to support small businesses, such as Motor City Match and Motor City Re-Store, and offers programs for existing businesses to enter into the global market, like Built in Detroit.