More than 43,000 businesses in Michigan impacted by the COVID-19 outbreak received more than $10 billion in forgivable loans during the first round of federal Paycheck Protection Program (PPP) funding, according to Michigan officials.
That’s not going to be enough, as many small business owners will tell you. Lt. Gov. Garlin Gilchrist, in a joint news release with former Lt. Gov. Brian Calley, is calling on federal officials to reach an agreement and authorize additional funding to the PPP funds.
According to Gilchrist, all of the $349 billion that was authorized for the initial round of PPP was committed by April 16 – less than two weeks after the application period opened -- showing the need for continued small business relief.
“While tens of thousands of Michigan businesses were able to receive more than $10 billion of relief through the Paycheck Protection Program, there continues to be a significant need for additional resources to support our small businesses,” Gilchrist said. “Additional funding for the Paycheck Protection Program will be critical in helping our businesses keep their doors open and in protecting the livelihoods of their workers.”
Michigan small businesses (per SBA size standards) – including hospitality and food industry businesses and sole proprietorships, independent contractors and self-employed persons – were eligible to apply for loans through The Paycheck Protection Program (PPP) to help ensure employees continue receiving paychecks. The PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll and may be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
“For those businesses that applied but did not receive funding in the first round, please verify with your lending institution that your application is still active and in line for funding when Congress comes through,” Calley said. “If a business didn’t apply before, now is the time to get your application ready. These loans can save a business and keep thousands employed.”
Through the MEDC, michiganbusiness.org/covid19 also features other resources for businesses across Michigan to assist them in recovering from economic losses as a result of the COVID-19 virus. This includes U.S. Small Business Administration emergency loans, support services offered through the SBDC and more. The MEDC has also developed a FAQ for Michigan businesses and communities at michiganbusiness.org/covid19-faq.
“The PPP funds are on a first come, first served basis,” said Bob Doyle, Michigan Association of CPAs (MICPA) president and CEO. “Once new funds are available, businesses interested in these forgivable loans, should gather their information and submit an application as soon as possible.”