Last week, Governor Whitmer announced Michigan has launched a new Afflicted Business Relief grant program, totaling $409 million in funds for businesses continuing to suffer hardships from the COVID-19 pandemic.

Under this program, eligible businesses in operation before Oct. 1, 2019, may receive a percentage of their loss in total state sales through a grant, up to $5 million. Eligible businesses that began operating between Oct. 1, 2019, and June 1, 2020, may receive a grant equal to 25% of certain specified costs. The grants may be prorated depending upon the number of businesses that apply to ensure that all eligible businesses can receive funding.

Eligible Businesses

Eligible businesses must have been in operation before Oct. 1, 2019, or began operations no later than May 31, 2020, and be currently open for business. They must also meet the following requirements:

  • Have a physical presence and conduct business operations in Michigan
  • Fall within one of the nine eligible business categories, including:
    1. Entertainment venues
    2. Recreational facilities
    3. Cosmetology or barber shops
    4. Exercise facilities
    5. Food establishments
    6. Nursery dealers and growers
    7. Athletic trainers
    8. Body art facilities
    9. Hotels and other public lodging establishments, such as bed and breakfasts
  • Not be tax exempt under the Internal Revenue Code
  • Not be a government entity
  • Suffered a 5% or greater decline in total Michigan sales between calendar year 2019 and calendar year 2020. Payroll Protection Program forgiveness, Restaurant Revitalization Grants and other COVID-19 awards should be included in these sales figures.

Documentation Required

Businesses wishing to apply must provide supporting financial documents showing financial hardship, and attest to the completeness and accuracy of it. If applicable, the following documentation is required as part of the application:

  • Registration with Michigan Department of Licensing and Regulatory Affairs
  • 2020 Michigan unemployment insurance taxes paid
  • 2020 Michigan property tax bills and proof of payment
  • Lease agreement with 2020 cost shown
  • Amount and type of COVID-related forgiveness, grants or awards already received
  • Amount of on-premises retail liquor license fees, license-required inspection fees paid under the Michigan Food Inspection law, and the amount of all other business license or inspection fees
  • 2019 and 2020 audited financial statements, if available
  • 2019 and 2020 federal income tax returns
  • 2019 and 2020 Michigan sales tax and/or income tax returns

How to Apply

Applications will become available on Mar. 1, 2022, on the State of Michigan’s website, and will be accepted electronically until 11:59 EST on Mar. 31, 2022. The State of Michigan will reach out via email if any additional information is required to process your application.

Grant awardees will be notified in the spring, and grant awards will be distributed by July 1, 2022, via direct deposit to the bank account supplied in your application.

Need Assistance?

Businesses interested in applying are encouraged to watch the quick informational webinar recording hosted by Michigan’s Treasury Department.

As your trusted CPAs and advisors, Doeren Mayhew can help you secure the grant funding needed for your business to thrive beyond the pandemic. Whether it’s assisting in gathering the financial documentation needed to apply or understanding the related accounting implications, we’re here to help. Contact us today!