Loans & Funding

Loans, Grants & Financial Information

Discover loans and funding options available to small businesses including updates to commonly asked questions on the EIDL and PPP loan. Also in this section:

  • Related Webinars
  • Available Grants
  • SBA Loans

CARES Act: Paycheck Protection Program

The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program’s extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. Click here to learn more.

PPP Loan Forgiveness Application

Paycheck Protection Program Flexibility Act of 2020 Summary courtesy of Warner Norcross + Judd

The SBA and Treasury have released additional guidance regarding the Paycheck Protection Program Second Round of Funding:

For more information and updates on the PPP, visit SBA.gov/PaycheckProtection and Treasury.gov/CARES.

Small businesses and eligible nonprofit organizations, Veterans organizations, and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

More PPP Details

The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program’s extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by directing $349 billion towards job retention and business operating expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Under this program:

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.

Program Overview

The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses.

If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.

Eligibility

Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietors, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

When can I apply? 

Starting April 27, 2020, small businesses and sole proprietors can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Starting April 27, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.

Where can I apply?

You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. SBA Lender List

What Documents are Needed for PPP Application:

You’ll have to collect and submit the following information with your application so that they can calculate the size of loan you are eligible to receive:

  • Third party payroll administrator records for the applicable period.
  • List of all employees with their total compensation. For the purposes of this application, any employee with total compensation over $100,000 should be listed as $100,000.
  • Copies of quarterly 941 payroll tax reports filed with the IRS and a copy of W-3 (note 941 statements may not be available for Q1 of 2020).
  • Records of payments made for vacation, parental, family, and medical or sick leave.
  • Records of payments made for employer paid group health care benefits, if applicable.
  • Records of payments made for employer paid retirement plan benefits, if applicable.
  • Records of payments made for state or local taxes assessed on the compensation of employees, if applicable.

Once you have your information together, get to your bank or credit union to get your application in ASAP! This program is limited to $349 billion nationwide; sounds like a lot, but given the need, it won’t last long.

Michigan Small Business Restart Program to provide $100 million in grants for COVID-19 recovery efforts

The State of Michigan has appropriated $100 million of federal CARES Act funding through SB 690, signed into law by Governor Whitmer last week, to implement the Michigan Small Business Restart Program to support Michigan’s small businesses that are reopening and have experienced a loss of income as a result of the COVID-19 crisis.

The Michigan Strategic Fund today authorized distribution of the funding across 15 local or nonprofit economic development organizations (EDOs) covering all 83 counties in the state to providing a base amount of $3.5 million per EDO for grants up to $20,000 each to support certain small businesses that have realized a significant financial hardship as a result of the COVID-19 virus.

Learn more

Wayne County Back to Work Small Business Grant

$50 Million to be awarded | Grants up to $10,000

What you need to apply:

  • Profit & Loss or Tax Statements for 2017, 2018, and 2019
  • Proof of location such as a lease or deed
  • Completed W-9 Form

Qualifying Criteria:

  • Less than 50 full-time equivalent employees
  • Less than $1 million in total annual revenue
  • In good standing with State of Michigan
  • Located in brick-and-mortar commercial establishment
  • Business unable to accommodate work from home
  • Business open for 1+ years at the time of application
  • Business experiences revenue losses due to COVID-19
Learn more

SBA Economic Injury Disaster Loans

Economic Injury Disaster Loans are Re-Opened

Find out how to apply for SBA Disaster loans and other related topics here.

On June 15, the SBA began accepting new EIDL and EIDL Advance applications from qualified small businesses and U.S. agricultural businesses.

SBA also resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15.  They are processing those applications on a first-come, first-served basis.

Eligible small businesses and agricultural businesses may apply for the Loan Advance here.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000 ($1,000 per employee. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.

How do I apply for the SBA Economic Injury Disaster Loan?

SBA Economic Injury Disaster Assistance Loans in Response to the Coronavirus

  • The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These SBA makes loans are available to small businesses and private, non-profit organizations territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
  • SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.751% for small businesses.
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
  • For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.​
Apply Here

Loan Advance – Economic Injury Disaster Loan Advance

The CARES Act allows for up to a $10,000 EIDL Loan Advance.  The option is at the end of your on-line EIDL Application.  Click the box at the end of your EIDL application if you wish to be considered for the $10,000 advance.  Note that the advance is figured based on your number of FTE’s x $1,000; max advance is $10,000.  (If you have applied for an EIDL loan prior to Noon on Monday, March 30 you will need to re-apply for your EIDL.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.  Additional information in the EIDL Advance/Grant can be found in the CARES Act information below.

Economic Injury Disaster Loans are available to residents in declared disaster areas, Michigan is a declared disaster area.

Federal and State Financial Relief for Small Businesses

On Wednesday, March 25, 2020 and on March 27, 2020, the U.S. Senate and the House of Representatives passed the Coronavirus Aid, Relief and Economic Security (CARES) Act and the President just signed it into law. The CARES Act creates several new Federal Small Business Administration (SBA) loan programs or amendments to existing programs that could assist businesses that have been impacted by the COVID-19 pandemic with their day-to-day operating expenses.

CARES Act Loans

The CARES Act also creates an SBA loan program offering forgivable loans of up to $10 million to any “business concern,” including independent contractors and sole proprietors, with 500 or fewer employees, (or a greater number of employees if a greater number has been established by SBA size standards for the industry in which the business operates). The actual amount of the loan is the lesser of $10 million or the average monthly payroll for the business multiplied by 25%. The loan is 100% SBA backed. The loan can be used for payroll, group health, mortgages, rent, debt service and utilities. These loans will not require security or a guarantee, will not require that an applicant be unable to obtain financial assistance elsewhere and the SBA is waiving all fees related to applying for such loans. Interest rates are fixed at 1%. The loan period begins February 15, 2020 and ends June 30, 2020.

It is anticipated that these loans will be issued by SBA approved lenders (i.e., banks). Lenders will be able to defer payments on the principal and interest of the loan for a minimum of six months and up to one year. In addition, the loans are forgivable in an amount up to the amount paid by the business for payroll, rent, utilities and mortgage interest during the eight weeks after origination of the loan. The amount forgiven will be reduced by a formula related to layoffs or salary or wage reductions during the eight-week period after origination of the loan. A borrower is able to avoid this reduction by rehiring employees and eliminating the reduction in salary. It is proposed that lenders will be reimbursed by SBA for making these loans: 5% for loans up to $350,000; 3% for loans over $350,000 and less than $2 million; and 1% for loans $2 million and over. The SBA has stated it plans to release guidance related to the loans approximately 48-72 hours after the President signs the bill into law, though it has indicated that it will just be using its standard Section 7(a) forms, albeit slightly modified for this situation. Application information and other materials may be made available by the SBA prior to that through its COVID-19 website. We are hoping the SBA’s guidance will include whether religious organizations are eligible for the loans.

The CARES Act is also offering grants to small business development centers and women’s business centers. These grants are intended to provide education and training to small businesses.

Potential borrowers under the CARES Act should confirm such borrowing with existing lenders to be certain that the CARES Act loan does not violate a covenant of existing loan agreements.

Michigan Small Business Relief Program Grants

$10 Million in Matching Advertising Grants Available to Michigan Businesses from MLive

Our community needs our support now! As we begin to reopen across our state, MLive Media Group is pledging up to $10 Million in Matching Advertising Grants to support the marketing, advertising, and branding needs of area businesses.  The program runs June, July and August, 2020. Getting started takes as little as 2 minutes. Fill out a short questionnaire at www.mlivecares.com. Once submitted, you’ll hear back within approximately 48 hours.

Consumers Energy Foundation Provides $1.8 Million to Support Small Businesses in Communities Across Michigan

The Consumers Energy Foundation is donating $1.8 million to nine organizations to provide a lifeline to small businesses across Michigan – focusing in particular on helping female- and minority-owned businesses. For more information about the Consumers Energy Foundation, visit www.ConsumersEnergy.com/foundation.

Facebook Small Business Grants Program for Detroit Metro Area

“Up to 30,000 eligible small businesses in more than 30 countries where we operate will be able to receive the Facebook Small Business Grant.” To be eligible to apply, your business must be in the Detroit Metro Area. For details about the Small Business Grants Program click here.

MIOSHA MIWISH Grant Program

The MIOSHA Workplace Improvement to Safety and Health (MIWISH) Grant Program awards qualifying employers a dollar-for-dollar match – up to $5,000 – to purchase safety and health-related equipment and equipment-related training. The goal of the program is to create a safer and healthier work environment and reduce the risk of injury and illness to workers in Michigan. For more information on this grant and others, visit the website.

Express Loans

The CARES Act increases the maximum amount for a SBA Express Loan from $350,000 to $1 million through December 31, 2020.

Source: Warner Norcross & Judd

SBA Express Bridge Loans

Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

Learn more.

Who is eligible for an Emergency Economic Injury Grant Advance?

Those eligible for an EIDL and who have been in operation since January 31, 2020, when the public health crisis was announced.

How long are Emergency Economic Injury Grant Advances available?

January 31, 2020 – December 31, 2020. The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.

Summary of the Grants

The Emergency Economic Injury Grants are just a piece of the Economic Injury Disaster Loans to get money up front for business owners with cash-flow issues. Done at the same time you apply for your EIDL.

“Includes $10 billion in funding to provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.”

The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL. It may be used to provide paid sick leave to employees, maintain payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Eligible grant recipients must have been in operation on January 31, 2020. The grant is available to small businesses, private nonprofits, sole proprietors and independent contractors, tribal businesses, as well as cooperatives and employee-owned businesses.

A business that receives an EIDL between January 31, 2020 and June 30, 2020, as a result of a COVID-19 disaster declaration, is eligible to apply for a PPP loan, or the business may refinance their EIDL into a PPP loan. In either case, the emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven in the payroll protection plan.