Submitting an application and competing for small business grants Michigan can help you grow your small or medium-sized enterprise in the Wolverine State.
Michigan’s economy has a gross domestic product of $620.7 billion as of 2022. That’s the 14th largest GDP in the United States out of the 50 states and the District of Columbia. Small businesses contribute to the nation’s economy.
Small and medium-sized firms exported about $12.1 billion worth of goods from Michigan in 2021, which ranks 10th in the nation out of the 50 states and Washington, D.C., according to the most recent U.S. Census Bureau export data.
Small Business Grants Michigan
If you’re looking for small business grants in Michigan, here are some potential options to consider:
1. Michigan’s State Trade Expansion Program (MI-STEP)
- Program description: MI-STEP is a grant reimbursement program that can help you export your goods and services from the Wolverine State to foreign markets.
- Incentive: Receive up to $15K in reimbursements for eligible business expenses, including international marketing and trade show participation costs.
- General requirements: Here are some of the general requirements for this grant:
- Be a Michigan-based small business
- Be able to provide a Michigan Licensing and Regulatory Affairs (LARA) annual report or business structure filings from a county registrar’s office
- Understand how exporting works and the cost of doing business with foreign buyers
- Provide an employer identification number (EIN) linked to a Michigan address
- Be in good standing with the Michigan Department of Treasury and other regulatory agencies
- Be an export-ready U.S. company
- Have a product or service consisting of at least 51% U.S. content
- Minimum gross annual revenue of $100K
- Wholesale distributors of imported products are not eligible for MI-STEP grants
- How to apply: Access and submit a completed MI-STEP grant application through the Michigan Economic Development Corporation (MEDC) Project Portal.
2. Match on Main Grant Program
- Program description: Match on Main is a reimbursement grant program for eligible small businesses operating in a Michigan business district.
- Incentive: Be reimbursed up to $25K for eligible expenses on project activities, such as the cost of making interior building renovations to a permanent commercial space.
- General requirements: Here are some of the general requirements for this grant if you’re an eligible small business owner:
- Have a local government, downtown development authority, Michigan Main Street program, or other eligible organization apply on your behalf
- Be headquartered in Michigan
- Be located within a traditional downtown, historic, or mixed-use location zoned for concentrated commercial development in Michigan
- Sell products or services face to face as an eligible business
- Have a proposed project that incurs eligible expenses, such as costs for interior building renovations or electrical improvements
- How to apply: Work with an eligible applicant who can submit a Match on Main grant application on your behalf, such as the local government where your business is based.
3. Michigan Workplace Improvement to Safety and Health (MIWISH) Grant Program
- Program description: The Michigan Occupational Safety and Health Administration (MIOSHA) offers MIWISH matching grants to eligible employers who buy items that promote workplace safety.
- Incentive: Receive up to $5,000 in matching funds to buy items and training services that help improve the safety and health of your employees.
- General requirements: Here are some of the general requirements for this grant:
- Have 250 employees or less
- Come under the jurisdiction of MIOSHA
- Conduct a site-specific evaluation justifying the purchase of any safety equipment
- Implement a workplace safety project that reduces the risk of injury or disease to employees
- How to apply: Complete the MIWISH grant application available online.
4. Motor City Match Grants
- Program description: Motor City Match is a business assistance program that provides cash grants to eligible small business owners who need additional funding to open a new establishment in Detroit. The program can also benefit existing Detroit business owners who need additional funding to complete façade improvements.
- Incentive: Receive gap funding grants of up to $100K to open a new business in Detroit or grants of up to $25,000 to complete façade improvements to your existing Detroit business.
- General requirements: Here are some of the general requirements for this grant:
- Be a new businessperson opening your first location in Detroit, an existing business owner opening an additional location in Detroit, or an existing Detroit business owner who needs additional funding to complete façade improvements
- Have a clear budget on the total project costs to open a new establishment or complete façade improvements
- Have the ability to invest a minimum for 10% of the total project costs in your own equity
- Have a need for additional funding that you can’t find elsewhere
- Have been open and operating for at least one year if you’re seeking funding for façade improvements
- How to apply: Access the Motor City Match grant application online and submit a completed application when the grant round opens.
5. City of Wayne Façade Improvement Program Grants
- Program description: The City of Wayne Downtown Development Authority (DDA) offers Tax Increment Financing (TIF) cash grants to eligible property owners who enhance the general aesthetics of a building exterior or façade.
- Incentive: Receive up to $10K in reimbursements for making façade improvements to an eligible property in the City of Wayne’s downtown TIF district.
- General requirements: Here are some of the general requirements for this grant if you’re a small business owner:
- Own commercial property or other eligible real estate in the City of Wayne’s downtown TIF district
- All personal and real property taxes are paid up to date
- Payment of all water charges and special assessments are current
- Have a certificate of good standing from the state of Michigan
- Propose a detailed project that would improve a blighted property or help prevent deterioration in the downtown district
- Comply with all City of Wayne regulations, codes, and ordinances
- How to apply: Access the City of Wayne Façade Improvement Program grant application online and submit a completed application to the City of Wayne Community Development Department.
Michigan Small Business Grants
1. Department or Agency: Department of Environment, Great Lakes, and Energy
- Loan or Grant title: Small Business Pollution Prevention (P2) Loan Program
The P2 Loan Program provides loans of up to $400,000 to small businesses in Michigan that are involved in manufacturing, farming, retail, and service. You’ll apply for the loan with a private lender, and the Department of Environment, Great Lakes, and Energy provides half of the financing. Recipients can use loan funds for projects that reduce waste, encourage recycling, or conserve energy or water at the business’s location. Apply Here
2. Department or Agency: Michigan Strategic Fund/Michigan Economic Development Corporation
- Loan or Grant title: Michigan Business Development Program
The Michigan Business Development Program provides performance-based grants and loans of up to $10 million. Businesses with projects that create new jobs or make new investments in Michigan may qualify.
3. Department or Agency: Detroit Economic Growth Corporation
- Loan or Grant title: Detroit Industrial Revolving Loan Fund (DIRLF)
The DIRLF is a program that provides loans of up to $200,000 for businesses located in Detroit. Loan funds can be used to cover up to 40% of the costs of an eligible project, such as fixtures, furniture, equipment, or property acquisition. The remaining 60% can be covered by either the borrower, a private lender, or both. Apply Here
4. Department or Agency: Michigan Women Forward
- Loan or Grant title: MicroLoan
Michigan Women Forward is a foundation with a mission to expand economic opportunities for women and entrepreneurs of color. Its MicroLoan ranges from $2,500 to $50,000, and the funds can be used for eligible expenses such as inventory, qualified equipment purchases, working capital, and startup costs. To qualify, the company must be a privately held small business that’s registered in Michigan and meets the foundation’s other criteria. Apply Here
5. Department or Agency: ProsperUS Detroit
- Loan or Grant title: Lending
ProsperUs is a microlender that provides loans of up to $50,000. To qualify, the company must be a small business that’s registered with the state of Michigan and located in Detroit, Hamtramck, or Highland Park. Preference is given to applicants from low-income communities who identify as Black, indigenous, and/or other people of color including immigrants. Apply Here
6. Department or Agency: Grow
Loan or Grant title: Business Loan
Grow is a Community Development Financial Institution that provides loans of up to $50,000. The funds can be used for expenses such as equipment and inventory purchases, costs associated with hiring workers, and tech upgrades. Apply Here
7. Department or Agency: Michigan Women Forward
- Loan or Grant title: Endurance Loan Program
The Endurance Loan program combines loans with grant funding for businesses located in Washtenaw County, Michigan. Loans range from $2,500 to $20,000, and awardees will receive two technical assistance sessions along with a grant of up to 50% of the approved loan amount. Female business owners and entrepreneurs of color are encouraged to apply. For-profit businesses located in Washtenaw or Ypsilanti counties in any industry may qualify. Apply Here
8. Department or Agency: Good Food Fund
Loan or Grant title: Michigan Good Food Fund
The Good Food Fund provides loans of $2,500 to $6 million for farms and food entrepreneurs that grow, process, distribute, and sell food to low-income and underserved communities. The loan funds can be used for various expenses such as working capital, inventory, equipment purchases, property acquisition, and more. Eligible businesses will need to be in operation for at least two years and go through an underwriting process, among other requirements. Apply Here
Who Provides Small Business Grants in Michigan?
Local and state government agencies, including the MEDC, offer a variety of small business grants in Michigan.
You can compare small business grants in Michigan with similar programs in other states, such as:
- Illinois Small Business Grants
- Small Business Grants Ohio
- Colorado Small Business Grants
- Small Business Grants Arizona
- Indiana Small Business Grants
Do You Have to Pay Back a Small Business Grant?
A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. In general, small and midsized business owners are not required to pay back an SMB grant absent any violations.
You typically have to sign a funding agreement to accept a small business grant. As mentioned above, the grant may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.
Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.
Who Is Eligible for Small Business Grants in Michigan?
Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in Michigan.
The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees.
A small business, including individuals with freelancing business ideas, may be eligible for small business grants.
What Industries Does Michigan Support With Grants?
Michigan offers a variety of grants supporting the following industries:
- Cannabis
- Construction
- Fabricated metal product manufacturing
- Food manufacturing
- Machinery manufacturing
- Metal industries
- Nonmetallic mineral product manufacturing
- Nursing and residential care facilities
- Plastics and rubber products manufacturing
- Primary metal manufacturing
- Retail trade (store and nonstore retailers)
- Transportation equipment manufacturing
- Wood product manufacturing
Michigan Resources for SMB Owners Looking for Funding
Here are some resources for small and medium-sized businesses looking for funding in the Wolverine State:
Michigan Small Business Development Center (SBDC)
The Michigan SBDC is a statewide program that can provide Michigan’s small business owners with the following services:
- Webinars and workshops about running and growing your business
- Market research
- No-cost consulting
SBA District Office in Michigan
The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA Michigan District Office serves the entire Wolverine State with a main office in Detroit and satellite office in Grand Rapids.
Alternative Funding Sources for Small Businesses in Michigan
Here are some alternative funding sources for small businesses in Michigan:
1. Michigan State Small Business Credit Initiative (SSBCI)
Michigan’s SSBCI is a federally funded program for small business owners in the Wolverine State. Federal law — the American Rescue Plan Act of 2021 — allocates nearly $237 million to Michigan’s State Small Business Credit Initiative program.Here’s how Michigan plans to use the SSBCI funding:
- Michigan Small Business Venture Capital Program — $75 million. This program can help eligible startups access venture capital.
- Michigan Collateral Support Program — $71.1 million. This program provides cash collateral to help small businesses qualify for small business loans.
- Michigan Loan Participation Program — $48.2 million. This program uses SSBCI funds alongside private funds to support loans to borrowers who need financing for a diversification or expansion project in Michigan.
- Michigan Loan Guarantee Program — $40.3 million. This program provides lenders with short-term, partial guarantees to support loans offered to eligible borrowers, including socially and economically disadvantaged individuals who own small businesses in the Wolverine State.
- Michigan Capital Access Program — $2.37 million. This program uses SSBCI matching funds to support portfolio insurance on small business loans.
2. Michigan Microloan Lenders
Community-based nonprofits may offer microloans of up to $50,000 to small business owners in Michigan, including microloans for women-owned small businesses. In general, microloans can range from $500 to $50K and may be available to startups.
3. Michigan SMB Loans from Private Lenders
Banks, credit unions, and private lenders may offer different types of small business loans to Michigan business owners.Here are some of the funding products you may consider depending on your needs:
- Commercial real estate loans
- Equipment financing
- Small business loans for startups
- Working capital lines of credit
Frequently Asked Questions
This section addresses common inquiries about funding programs for small startups in Michigan, providing a clear pathway for obtaining financial support.
How can startups apply for small business funding programs in Michigan?
Startups can apply for funding through programs like the Growing Michigan Business Grant program, which supports businesses that meet specific criteria.
What are the eligibility criteria for Michigan small business startup grants?
The criteria for Michigan startup grants include business size, type, financial need, and impact demonstration. Additional specifics depend on the individual program’s regulations.
Where can I find the application for small business grants in Michigan?
Applications for grants can be found on official state websites such as Michigan Economic Development Corporation, providing detailed application processes.
What free funding programs are available to small businesses in Michigan?
Businesses can access free funding through programs like the State Small Business Credit Initiative, offering capital for both debt and equity investment.
How can Michigan small businesses impacted by COVID-19 receive financial aid?
Financial aid for businesses affected by COVID-19 is available through initiatives like the Michigan Small Business Restart Program, focused on those directly impacted.
What are the latest small business grant opportunities in Michigan for 2024?
The most recent updates on small business grants can be found through resources like Michigan government websites, which detail ongoing and new grant opportunities for the fiscal year.
This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.
References:
