Programs for Small Businesses Affected by the Coronavirus

Federal, Michigan, &
Local Metro-Detroit Focus

Compiled By

Harp Law

This is a compiled schedule of Federal, Michigan, & Local Detroit programs that are available to small businesses affected by the Coronavirus. With so many new programs and resources becoming available every day, it can be overwhelming for small-business owners to keep up with what’s going on. Hopefully this list can alleviate some of that stress, and give you a head start on your research.

We will be updating this schedule as new information and programs become available. Please note that we are not endorsing any program on this list. We have not personally vetted or reviewed these programs, and we certainly do not know if they are appropriate for your business. You should do your own research. While we will do our best to keep the information on this page updated, please check program sources for the most up to date information.

If you have any suggested additions, please email hadi@lawharp.com. Thank you.

Last Updated

4/1/2020

Looking for a straightforward comparison of the Federal EIDL and PPP Programs? - Click Here

Local Metro-Detroit Specific Programs

Sponsor/Program

Description

Details

Eligibility/Process/Requirements

Access Links

Detroit/Wayne County Small Business Grants (including via Michigan Small Business Relief Program)

Small Business Relief Grants to Detroit and Wayne County businesses are being administered by the Detroit Economic Growth Corporation. 

Wayne County has been allocated $1.6M  in funds to provide eligible businesses up to $10,000 in grants.

The City of Detroit has a separate fund of $3.1M to provide to eligible businesses for grants of up to $10,000.

Applications are LIVE now.

Note: there are separate applications for those businesses physically located in Detroit, and those located in Wayne County (excluding Detroit).

In order to qualify for grant support, businesses must meet the following criteria:

-The business is among the type outlined in Executive Order 2020-20 (or other Executive Orders of similar intent) 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

Wayne County Businesses  (Detroit Excluded)) - Apply Here

Wayne County Information re Grant Program

Detroit Businesses Application - Apply Here

DEGC/Detroit Information re Grant Program

Outside of Wayne County? Search for your App Here Michigan Small Business Relief Program

Wayne County / TCF Bank / Chemical Bank Small Business Relief Fund Loans

TCF Bank, Chemical Bank, and Wayne County are working together to provide fast relief through microloans, to help small businesses with the effects of COVID-19.

Program details

-Loans will be for a term of 12 months with interest rates of two percent or less

  • First six months consist of interest only payments
  • Amortizing payments during second six months, with balloon payment at the end of the 12 months

-Available loan amounts will range from $5,000 to $50,000, depending on number of employees

-Loan to be secured by business collateral, with guaranties by individuals with at least 20% ownership

Eligibility

-Business has been established for at least one year Credit approval guidelines are met

-Business is:

  • identified as a small business, which is a business that employs fewer than 100 employees or has revenue of approximately $1MM or less
  • located in a low income census tract
  • in good standing with County, State and not in delinquency with creditors, prior to COVID-19 emergency

-Business suffered substantial hardship (at least 25% loss of revenue) due to COVID-19 emergency and will use proceeds to assist with that hardship

Steps to apply

-Complete the Small Business Relief Loan Fund application

-Provide the following documents:

  • Previous year’s business tax returns
  • Previous year’s personal tax returns on all owners with greater than 20% ownership
  • Description of the impact to business due to COVID-19

-Submit the application and requested documents to TCF Bank representative

TCF Bank Website Program Details Page

Chemical Bank Website Program Details Page

Note: although not explicitly stated, it appears by inference this is only available to businesses located in Wayne County

TechTown Detroit Small Business Stabilization Fund

Update: applications for this grant have closed as of Friday 3/27. Check the site directly to see if it opens up in the future.

TechTown Detroit is administering an emergency fund that provides working capital grants in amounts up to $5,000 to qualifying small businesses.

The program will be available to all Detroit citywide businesses meeting eligibility requirements, and gives preference to businesses with low-income owners located in neighborhoods at high risk for displacement.

Grants may be used to cover the day-to-day operating expenses of the Business, such as payroll or losses due to destabilizing events.

The priority is to assist companies that sell products and services to their customers face-to-face. This includes Detroit-based food trucks.

The business must have experienced a loss of income due to COVID-19.

Criteria

- The business owner’s household income must be low- or moderate-income(≤80% of the Area Median Income).

- Business owners must provide proof of personal income based on their 2018 or 2019 tax returns.

- The business must have ten employees or less

- The business must have a physical establishment in the city of Detroit. Hamtramck and Highland Park-based businesses do not qualify.

- Funding will be provided to Business entities only.

Your Business bank account number, Michigan Business entity identification number, and employer identification number (EIN) will be required.  

Applications are being accepted now, will be reviewed on a rolling basis, and decisions will be made as quickly as eligibility can be confirmed.

TechTown Grant Program Information

Donate to the TechTown Fund

Update: applications for this grant have closed as of Friday 3/27. Check the site directly to see if it opens up in the future.  

Statewide Michigan Programs

Sponsor/Program

Description

Details

Eligibility/Process/Requirements

Access Links

Michigan Small Business Relief Program

This program is being administered by 15 different agencies across the state. Access the list of agencies, as each have their own application process depending on the location of your business.

The Michigan Small Business Relief Program will provide up to $20 million in support for small businesses negatively impacted by COVID-19.

Funding is divided between $10 million in small business grants, and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce. Funds for the program are expected to be available no later than April 1, 2020.

Grant Program: Grants to eligible businesses of up to $10,000.

Loan Program: Loans to eligible borrowers between $50,000 and $200,000.

Grant Program Criteria

- The company is in an industry outlined in an eligible Michigan Executive Order, or demonstrates it is otherwise affected by the COVID-19 outbreak,

- The company has 50 employees or less

- The company needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business; and

- The company is able to demonstrate an income loss as a result of the EO, or the COVID-19 outbreak.

Loan Program

- The company is in an industry outlined in Executive Order 2020-9 (“EO”), or demonstrates it is otherwise affected by the COVID-19 outbreak, or is a company that provides goods and services to companies to the aforementioned

- The company has fewer than 100 employees;

- The company needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business

- The company can demonstrate that it is unable to access credit through alternative sources;

- The company can demonstrate an income loss as a result of Executive Order 2020-9.

General Small Business Relief Information

Grant Program Fact Sheet

Loan Program Fact Sheet

Michigan Small Business & Loan Guide

Note, as of 3/28/2020, the state has published a list of the 15 agencies responsible for administering the program in localities across the state. Each locality will have its own application process. Access the list. 

Michigan Work Share Program

Governor Gretchen Whitmer signed Executive Order 2020-10, which expanded Michigan’s Work Share Program (in addition to temporarily expanding eligibility for unemployment benefits, described below).

Expands the State’s Work Share program. Which is designed to permit employers to maintain operational productivity during regular business decline instead of laying off workers. Under the Work Share program, unemployment benefits are based on a percentage of the reduced hours of work and pay.  

Employers must meet and maintain certain requirements in order to participate:

  • Unemployment taxes must be current
  • Must have paid wages for at least 12 of the previous quarters
  • Must not hire new employees into the affected work unit, not transfer employees into the unit during a plan
  • May not reduce hours of work below a number approved under the plan; and
  • Must certify that participation in a plan is in lieu of a temporary lay-off which reduces employee’ normal work hours by at least 15 percent but not more than 20 percent.

Michigan Work Share Program

Michigan Work Share FactSheet

Federal Programs

Sponsor/Program

Description

Details

Eligibility/Process/Requirements

Access Links

Click Here to Access Our CARES Act Comparison: SBA Loan Programs Under EIDL and PPP

SBA - Economic Disaster Relief Loans

Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

Loan Amount Limit

The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

Loan Terms

The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.

Interest Rates

The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.750 percent.

$10K ADVANCE CARE ACT UPDATE: 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 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.

Credit Requirements

• Credit History – Applicants must have a credit history acceptable to SBA.

• Repayment – Applicants must show the ability to repay the loan.

• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.

Insurance Requirements

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance.

Application Process Typically Requires the following

- Business Loan Application (online or by mail)

-IRS Form 4506-T completed and signed by Applicant business,  each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50%

ownership in an affiliate business.

- Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.

- Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.

- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).

- Other additional information that may be required, including a current year to date profit and loss statement, monthly sales figures, and owner's most recent tax returns.

SBA Apply Online [NEW STREAMLINED PROCESS AS OF 3/30/2020]

SBA Fact Sheet for State of Michigan Applicants

State of Michigan Disaster Declaration

State of Michigan Helpful Information

Care Stimulus Act - Paycheck Protection Program

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other 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 the 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.

Note: the loans issued under this program are issued by banks, lenders, and perhaps online FinTech companies, not the SBA. The SBA is only guaranteeing the programs terms to those issuing you the loans.

Program Details

-PPP loans are 100% federally guaranteed loans for small businesses intended for companies to maintain their payroll levels and allow partial loan forgiveness, as described below.  The loans are available until June 30, 2020 for eligible companies to cover the cost of: Payroll, Health care benefits and related insurance premiums, Employee compensation (with some limitations for employees with salaries over $100,000 and exclusions for employees based outside the U.S.), Mortgage interest obligations (but not principal), Rent and utilities, and Interest on debt incurred prior to the loan.

-The maximum amount of a PPP loan available to each borrower is equal to the lesser of: (a) $10 million, or (b) 2.5 x its average total monthly payroll costs, as defined in the Act.  

-Unlike most typical SBA loans, the PPP Loans are unsecured loans requiring no collateral, no personal guarantee, and no showing that credit is unavailable elsewhere.  

-The PPP loan, to the extent not forgiven, has a maximum 10-year term and the interest rate may not exceed 4%.  PPP loans will be made available through SBA-approved lenders, who must offer a 6-12 month deferment on payment of principal, interest, and fees.

-A borrower of a PPP loan is eligible for loan forgiveness for amounts spent during the 8-week period after the origination date, subject to proper documentation, on (i) rent, (ii) defined payroll costs, (iii) mortgage interest, and (iv) utilities, not to exceed the principal of the loan.  The amount of the PPP loan forgiveness may be reduced if the borrower reduces the number of employees or salaries and wages (for employees with annual salaries less than $100,000) during the 8-week period following the origination of the loan.  However, this reduction penalty doesn’t apply to the extent the borrower restores their workforce count and salaries/wages by June 30, 2020.

SBA Paycheck Protection Program Information

Note, as of 3/30/2020, much more in-depth information about PPP can be found outside of the SBA’s website. This information is based on direct reads of the CARE Stimulus Bill passed by Congress. However, to date, actual regulations and guidance from the SBA has not been issued.

Other Nationwide Programs

Sponsor/Program

Description

Details

Eligibility/Process/Requirements

Access Links

Facebook Grant Relief Program

Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries.

Facebook will share more details as they become available. The details of the program have not yet been released. Be sure to sign up for updates on their website so you have them once they become available.

Facebook will share more details as they become available. The details of the program have not yet been released. Be sure to sign up for updates on their website so you have them once they become available.

Facebook Grant Program Website

PenFed Foundation – For Veterans

Update: applications for this grant have closed as of 3/21. Check the site directly to see if it opens up in the future.

The COVID-19 Emergency Financial Relief Program was created to provide financial assistance to all Veterans, Active Duty, Reserves and National Guard who are experiencing a financial setback due to the negative economic effects of the COVID-19 pandemic.

The grant amount will support a  1 month of payment up to $1500 in the following areas:

- Rent

- Mortgage

- Auto Loan/Lease

- Utilities (Electric, Water, Heat)

- All checks will be sent directly to the creditor or landlord after the grant is approved.

The Foundation can only support one emergency financial request per household.

To be eligible for this program you must be in one of the following categories:

- a Veteran that has been honorably discharged

- A current active duty service member

- Currently active in the Reserves

- Currently active in the National Guard

What You’ll Need

- DD214 or LES

- A bill or statement for the requested expense

- An explanation of how the financial setback is related to the COVID-19 pandemic (for example, loss of job due to quarantine and/or public health policies)

PenFed Foundation – For Veterans

NOTE: APPLICATION DEADLINE IS 3/21/20 AT 3:00PM. UNCLEAR IF THEY WILL OPEN UP FOR ANOTHER ROUND.

Honeycomb Crowdfunded Small Business Relief Loans

Honeycomb is a Crowdfunding Platform: To help deliver working capital that businesses need, Honeycomb is offering 45-day payment free periods, 6-month interest-only periods and reducing their posting, success, and investor fees. They also streamlining their due diligence to connect businesses with local investors as quickly as possible. As always, these loans are community funded via the Honeycomb crowdfunding platform.

Option 1

- Borrow $10,000-$50,000 in working capital

- Initial 6-month interest-only payment period

- 3-year fully amortizing loan

- No prepayment penalties

- 7.5% fixed interest rate

Option 2

- Borrow $10,000-$25,000 in working capital

- Initial 6-month interest-only payment period

- 3-year fully amortizing loan

- No prepayment penalties

- 10% fixed interest rate

Option 1 Qualifications

- 3+ years of operating history

- Profitable in 2019

- Above average credit score for 20% owners

- Debt service coverage ratio of 1.2 or higher

- Owners have positive net worth

- No delinquencies (personal or business)

- Lease agreement in good standing

- Registered and legally organized business

- Demonstrated community support

Option 2 Qualifications

- 1+ years of operating history

- Breakeven or profitable in 2019

- Good credit score for all 20% owners

- Debt service coverage ratio of 1.0 or higher

- Owners have non-negative net worth

- No delinquencies (personal or business), unless explicitly related to the economic slowdown

- Lease agreement in good standing

- Registered and legally organized business

- Demonstrated community support

Honeycomb Relief Crowdfunding Options

Relief for Individuals

Sponsor/Program

Description

Details

Eligibility/Process/Requirements

Access Links

Michigan Unemployment Insurance

Governor Gretchen Whitmer signed Executive Order 2020-10 to temporarily expand eligibility for unemployment benefits. This executive order is effective immediately and until Tuesday, April 14 at 11:59pm.

Eligible employees should apply for unemployment benefits online.

Under the governor’s order, unemployment benefits would be extended to:

- Workers who have an unanticipated family care responsibility, including those who have childcare responsibilities due to school closures, or those who are forced to care for loved ones who become ill.

- Workers who are sick, quarantined, or immunocompromised and who do not have access to paid family and medical leave or are laid off.

- First responders in the public health community who become ill or are quarantined due to exposure to COVID-19.

Michigan Unemployment Insurance Application / Information

Michigan Unemployment Fact Sheet

Federal Tax Day Relief

The Treasury Department and Internal Revenue Service announced that the federal income tax filing and payment due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can defer filing and payment of their federal income taxes that are due on April 15, 2020, to July 15, 2020, without penalties and interest.

Check with your tax professional to ensure you qualify.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.

IRS Press Release

Other IRS Tax Relief Programs

To help people facing the challenges of COVID-19 issues, the Internal Revenue Service has announced a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.

-The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes,  temporarily adjusting IRS processes to help people and businesses during these uncertain times.

-These new changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise, to collection and limiting certain enforcement actions.

-The IRS will be temporarily modifying the following activities as soon as possible; the projected start date will be April 1 and the effort will initially run through July 15. During this period, to the maximum extent possible, the IRS will avoid in-person contacts. However, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations.

Highlights

-Existing Installment Agreements –For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. By law, interest will continue to accrue on any unpaid balances.

-New Installment Agreements – The IRS reminds people unable to fully pay their federal taxes that they can resolve outstanding liabilities by entering into a monthly payment agreement with the IRS. See IRS.gov for further information.

-Offers in Compromise (OIC) – The IRS is taking several steps to assist taxpayers in various stages of the OIC process (see press release for details)

-Field Collection Activities - Liens and levies (including any seizures of a personal residence) initiated by field revenue officers will be suspended during this period. However, field revenue officers will continue to pursue high-income non-filers and perform other similar activities where warranted.

-Automated Liens and Levies – New automatic, systemic liens and levies will be suspended during this period.

-Passport Certifications to the State Department – IRS will suspend new certifications to the Department of State for taxpayers who are "seriously delinquent" during this period.

-Private Debt Collection – New delinquent accounts will not be forwarded by the IRS to private collection agencies to work during this period.

-Statute of Limitations - The IRS will continue to take steps where necessary to protect all applicable statutes of limitations. In instances where statute expirations might be jeopardized during this period, taxpayers are encouraged to cooperate in extending such statutes. Otherwise, the IRS will issue Notices of Deficiency and pursue other similar actions to protect the interests of the government in preserving such statutes.

See press release for other program relief details.

IRS People First Initiative Press Release

*Please note that any program included in this list does not mean that our office is endorsing it. We have not performed any review or due diligence on any of these programs, and we certainly do not know if they are appropriate for your business. You should do your own research. We are not responsible for updates, or for the accuracy, of anything compiled here. Check program sources for all up to date information. Reach out to a professional if you believe you need help.

© Harp Law 2020

www.LawHarp.com