Michigan is open for business. And the state is looking to help small business owners get ahead.
The Great Lakes State enacted a series of bold initiatives to empower early-stage entrepreneurs.
A $75 million Small Business Smart Zones and Business Accelerators initiative was passed by the Michigan legislature in February.
Small businesses play a pivotal role in the growth of Michigan’s economy. That’s why we’re bringing new and more comprehensive resources to small businesses so that every business owner has the opportunity to Make It in Michigan. @purelansing @SBAMhttps://t.co/vjuRkQJwny
— Michigan Business | MEDC (@MEDC) February 9, 2024
The Michigan Economic Development Corporation (MEDC) will oversee the Small Business Support Hub Grant Program, with 27 regional economic groups dubbed state support hubs.
These are established and well-respected entities in their communities. Each group will get a grant of about $2.7 million.
Those funds are allocated from the American Rescue Plan Act (ARPA), a 2021 economic stimulus bill meant to spur small business growth. As they say, a rising tide lifts all boats.
But there is a specific set of criteria that every business owner has to meet for approval.
To qualify for the SBSH Grant Program, eligible businesses must a) have a physical address in Michigan b) count less than 500 employees c) fill out and submit a Small Business Support Hub (SBSH) Grant Program Application and d) show undue impact from the Covid-19 pandemic.
Among the resources available to business owners are: one-on-one coaching, mentoring, partner referrals, workshops, access to capital, courses on accounting, information technology, and much more.
Most of the chosen hubs can be found in the state’s Lower Peninsula. Many areas will benefit, though smart money is on the Motor City.
Crain’s Business Detroit reports that 25 support hubs will be spread throughout the city. This should give Detroit’s small business owners new opportunities to grow and thrive in a rapidly evolving economic climate.
While the U.P. counts three hubs: in Houghton, Kincheloe and Marquette.
The Small Business Association of Michigan Foundation will begin to distribute grants this fall and continue through February 2026.
Cash grant applicants not selected for the first round will have their applications kept to be considered for a future round of funding.
The application period is open until September 8. Click here to apply
SBAM Foundation Executive Director David Rhoa stated, "What’s unique about this program is our holistic approach to developing the entrepreneur and supporting them through their journey. Historically, most supports have been narrow in focus, and we’re excited to create wraparound business support opportunities."
Rhoa added, “First and second-stage businesses, which are primary drivers of job growth, wealth creation, and community building in Michigan. The SBAM Foundation envisions that the initiatives and infrastructure we are developing under the SBSH Grant Program will endure beyond the term of the grant funds. There is a clear demand for these support services."
He concluded, "We believe that these programs will pay significant dividends to the small businesses participating and directly benefit Michigan’s small business community for years to come. These courses are really a framework for small business success.”
On a related note, the state legislature has approved a $60 million proposal to aid Michigan-based startups in the new budget for fiscal year 2025.
Over two dozen organizations have lined up to partner with the state in that venture. The Innovation Fund is only the start of a long-term plan..
Three state representatives have sponsored a pending bill that would allocate $105 million for such a fund.
This $105 million fund would be allotted for five established Michigan-based nonprofit early-stage evergreen funds, which would then invest the funds in state-based startup companies with competitive edge technologies.
The coalition includes: the Michigan State University Research Foundation, University of Michigan Accelerate Blue Fund as well as a division of Western Michigan University.
Clearly, state officials are planting the seeds for small business owners to succeed. And it seems both major political parties are on board with the greater economic vision.
Michigan State Rep. Greg VanWoerkom (R-Norton Shores) said earlier this year: “When you invest in those dollars, people will see [we’re] serious about helping entrepreneurs and [might] attract others to come here. I think really the focus is trying to keep young people and entrepreneurs and risk takers here in the state.”
The future is bright for small business operators in this state. With all of these resources soon within reach, there is good reason to double down on Michigan.