CORONAVIRUS RESOURCES - SMALL BUSINESSES
January 15, 2021
Michigan Small Business Survival Grants to provide critical relief
The Michigan Small Business Survival Grant Program will provide $55 million in grants to meet the urgent need of Michigan small businesses that have experienced a significant financial hardship due to the recent COVID-19 emergency “gatherings and face mask orders.” Grants of up to $20,000 will be awarded to businesses that are fully closed, with grants of up to $15,000 awarded to businesses that have been partially closed, or otherwise are open and can demonstrate an impact.
Michigan Small Business Survival Grant: A single, statewide application for the program will be live at michiganbusiness.org/survival on 9:00 a.m. EST on Tuesday, January 19 through 12:00 p.m. (noon) EST on Friday, January 22.
Businesses must meet the following eligibility requirements:
MSF also approved the $3.5 million Michigan Stages Survival Grant Program, which will provide up to $40,000 in one-time grants to eligible Michigan live music and entertainment venues that have experienced a significant financial hardship due to the COVID-19 pandemic.
Michigan Stages Survival Grant: Applications will be available at www.michiganbusiness.org/stages starting at 9:00 a.m. EST on Thursday, January 21- 12:00 p.m. (noon) EST on Thursday, January 28, 2021.
Venues must meet eligibility requirements that include
A full list of application and eligibility requirements is available at michiganbusiness.org/stages.
Consolidated Appropraitions Act, 2021
The Consolidated Appropriations Act, 2021 was signed by the U.S. Senate and House of Representatives on December 21, 2020 and was signed by the President on December 27, 2020. The key provisions in regards to the Paycheck Protection Program (PPP) loans and the Economic Injury Disaster Loan (EIDL) grants are as follows:
Check back for likely additional changes and clarification in the coming weeks.
December 7, 2020
Pure Michigan Small Business Relief Initiative
The Pure Michigan Small Business Relief Initiative will utilize federal CARES Act funding to provide $10 million in grants to meet the urgent need of Michigan small businesses disproportionately impacted the COVID-19 virus. Applications for businesses to apply will open on December 15, 2020 at 9:00a.m.
Grants will be awarded in the amount of up to $15,000 per eligible business on a "first-in" basis. Grant funds will assist eligible small businesses directly impacted by COVID-19 meet urgent working capital needs including payroll expenses, rent or mortgage payments and utility expenses.
For the full list of requirements and for more information, please review the following document : Small Business Relief FAQ's.
November 23, 2020
IRS Clarifies Stance On No Deductibility Of Expenses Paid With PPP Funds
On November 18, 2020, the IRS issued Rev. Rul. 2020-27, which addresses the issue of borrowers who pay expenses in 2020 but whose PPP loan is not forgiven until 2021. The Rev. Rul. directs that a taxpayer who received a Paycheck Protection Program loan and paid otherwise deductible expenses with the proceeds, may not deduct those expenses in the year they were incurred if the taxpayer reasonably expects to receive forgiveness of the loan.
In short, even if forgiveness hasn't happened, borrowers can't deduct expenses paid for with PPP funds if they reasonably believe the loan will be forgiven.
The IRS says that "the fact that the tax-exempt income may not have been accrued or received by the end of the taxable year does not change this result because the disallowance applies whether or not any amount of tax-exempt income in the form of covered loan forgiveness and to which the eligible expenses are allocable is received or accrued."
November 17, 2020
SBAM administering at least $3M in grants from LEO to help small businesses weather the cold
To help small businesses successfully navigate the winter ahead and prevent the spread of COVID-19, the Small Business Association of Michigan is partnering with the Michigan Department of Labor and Economic Opportunity (LEO) to administer at least $3 million in weatherization grants to assist qualified small businesses with expanding outdoor capacity during the cold weather months. Eligible businesses may apply to receive between $1,000 – $10,000 in funding for weatherized, temporary outdoor facilities, while eligible municipalities and local organizations may apply to receive up to $15,000. Click here to learn more about Weatherization Grants. Ready to apply? Submit your application here beginning November 18, 2020 at noon EST.
August 13, 2020
Employee Retention Credit Eligibility Tool
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. For each employee, wages up to $10,000 can be counted to determine the amount of the 50% credit.
Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during calendar year 2020 and experience either:
The credit applies to qualified wages (including certain health plan expenses) paid during this period or any calendar quarter in which operations were suspended.
The following are not eligible for the credit:
If you have any questions, please contact our office and we would be happy to assist you.
August 6, 2020
Paycheck Protection Program FAQ's on Loan Forgiveness
June 25, 2020
Michigan Small Business Restart Program
The Michigan Economic Development Corporation is administering the Small Business Restart Program that is providing grants up of $20,000 for working capital to support payroll expenses, rent, mortgage payments, utility expenses, and other similar expenses. To be eligible a business or nonprofit must have 50 or fewer employees, have a need for working capital and demonstrate an income loss as a result of the COVID-19 emergency. Businesses that received support from other COVID-19 relief programs, such as PPP or EIDL loans, are eligible to apply.
The application period is from July 15 to August 5, 2020, and expenses eligible must be incurred between March 1, 2020 and December 30, 2020.
At least 30% of the funds awarded will be to women-owned, minority owned, or veteran owned eligible businesses.
You can find the application and other information at https://www.michiganbusiness.org/restart.
If you have any questions, please contact our office and we can assist you.
June 17, 2020
AICPA - SBA Paycheck Protection Program (PPP) FAQs
June 5, 2020
Paycheck Protection Program Flexibility Act, H.R. 7010
The Paycheck Protection Program Flexibility Act (PPPFA) was signed into law on June 5, 2020. The purpose of this bill is to ease the forgiveness requirements for the Paycheck Protection Program loans. Loan recipients will have looser restrictions as to how and when the funds need to be spent.
Learn more here.
March 31, 2020 Coronavirus Emergency Loans - Small Business Guide and Checklist
March 27, 20120
SBA Offers Disaster Assistance to Michigan Small Businesses Economically Impacted by the Coronavirus (COVID-19)
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Michigan small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19)
Learn more here
Click here for Loan Applications
March 27, 2020
The Small Business Owner’s Guide to the CARES Act
This guide provides information about the major programs and initiatives that will be available from the Small Business Administration (SBA) to address these needs. View Guide
March 26, 2020
Small Business Relief Program
Michigan’s small business negatively impacted by the COVID-19 virus can now apply for the Michigan Small Business Relief Program. The program will provide up to $20 million in grants and loans to provide economic assistance to Michigan’s small businesses. Grants will be administered by 15 local and nonprofit economic development organizations (EDOs) around Michigan.
Michigan Economic Development Corporation Small Business Relief Program information: Click here
Michigan Small Business Relief Program: Grants
Michigan Small Business Relief Program: Loans
March 20, 2020
Families First Coronavirus Response Act: Employee Paid Leave Rights
Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s (Department) Wage and Hour Division (WHD) administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through December 31, 2020.
March 17, 2020
Penalty and Interest waived for 30 days for monthly, use and withholding tax returns due March 20, 2020.
The Michigan Department of Treasury has implemented a waiver for sales, use and withholding payments and returns due on March 20, 2020. Please contact us if you have any questions.
Link to MI Dept of Treasury waiver notice: