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Michigan Strategic Fund approves $41.9M for COVID-19 response fund

Approved funding will be used as part of the CARES Act

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(Mark Wilson/Getty Images)

LANSING, Mich. – The Michigan Strategic Fund (MSF) approved the second amendment of the 2019 Program Year Action Plan for $41.9 million to be incorporated in Community Development Block Grant’s (CDBG) Coronavirus Response funds.

The approved funding, announced Tuesday, will be used as part of the CARES Act.

Related: Macomb County offering $5,000 small business grants; applications due June 24

MSF approved an amendment to the Program Year Action Plan in May, adding $20.5 million for COVID-19. Seventy-seven counties, which did not already receive direct funding from the CDBG, will be eligible for the funding under the action plan. With the funding, counties would be reimbursed for unbudgeted expenditures allocated for prevention and preparation in response to COVID-19.

In addition, the counties are eligible to request for reimbursement of expenditures such as PPE, sanitation equipment, testing for COVID-19, quarantine sites setup, and overtime or hazard pay related to the virus. Counties may also request reimbursement for eligible cities, townships ad villages in their jurisdiction.

Michigan Economic Development Corporation (MEDC) officials said the amendment would update the resolution in the program’s guideline in reflection to House Bill 5265, pending Gov. Gretchen Whitmer’s signature.

Small business restart program

The MSF also adopted amended guidelines to the Michigan Small Business Restart Program. For more information on the program, visit https://www.michiganbusiness.org/about-medc/covid19/restart/.

With the amendment, small businesses that received grants through the Michigan Small Business Relief Program would be eligible for grants from the restart program. The grants from both programs combined could not exceed $20,000.

Related: Michigan small businesses impacted by pandemic can apply for grants and loans through program

“Today’s projects represent Michigan’s continued commitment to reduce the impact of COVID-19 on our state and local communities and showcase the resiliency and ingenuity of our economy and our workforce, despite a global pandemic,” said Mark A. Burton, CEO of the MEDC. “We continue to use every resource possible, including critical federal dollars, to ensure our communities, businesses, and workforce across the state are able to not only recover from the effects of this crisis but be in a position to thrive long term.”

The deadline to apply is expected to extend beyond Aug. 5.

For more information of MEDC’s other release programs, visit https://www.michiganbusiness.org/covid19response/.