State, Federal Grants and Loans Available during the Coronavirus Crisis

Posted: in Pulse on the Industry , HLM News

Many small businesses can get cash like that in this picture by completing a disaster loan application.

Update March 30, 2020: Paycheck Protection Program

With many small businesses in Michigan reeling from the recent Executive Order as a result of COVID-19, many owners are scrambling to make plans until April 13, 2020, and possibly beyond, to mediate business losses. 

The MEDC announced the Michigan Small Business Relief Program to fund $20 Million to Support businesses impacted by COVID-19. The fund is divided into grants and loans. Ten million will be distributed as up to $10,000 grants to pay for working capital, rent, payroll, etc. Businesses must show they have suffered a loss due to the coronavirus, and also have fewer than 50 employees.

The grants do not have to be paid back.

Apply through

The remaining ten million will be reserved for loans between $50,000 – $200,000. As reported by Dalton and Tomich, these loans are intended for larger businesses, with up to 100 employees. The loan proceeds can be used for any working capital needs; but the loans will be personally guaranteed and must show an ability to repay. The terms of the loan are very favorable to the borrower with interest rates as low as .25%, and the first 60 months interest-only payments; after that the amortized over 5 year period.

Apply through

The Federal government is also doing its part by releasing $1 billion in disaster loan relief through the SBA – Small Business Administration. The SBA will provide loans of up to $2 Million to cover loss of revenue due to Covid-19. The loans must be to repay fixed debts, utilities, rent, accounts payable and will have interest rates of 3.75% interest, 2.75% for nonprofits. See for more information. The SBA will look into personal credit history, and the loans will have to be personally guaranteed, however they will have generous repayment terms of a maximum30 year terms. Ability to repay will be based on 2018/2019 tax returns. Applications for the loan can be made up to 9 months after disaster, and funds are being released as early as April 1.

Learn more about the disaster loan relief here:

Update March 31, 2020: The Small Business Administration (SBA) under its 7(a) program has released a sample Paycheck Protection Program (PPP) application.

This is the PPP program that is available in addition to the disaster program. It's one or the other... however the PPP is forgiven if you can get the funds.

How to Apply:

(Per the SBA Site) You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. Some banks may be ready as early as April 3, 2020 with their own options.

High Level Marketing is dedicated to the success of its clients and the greater business community in Michigan. HLM will continue to provide and curate resources for those affected by COVID-19 so that we may continue to help small businesses take their marketing to a higher level. 

Michael Cipielewski