Resilience Microloan Fund

Overview:

With the generous support of MEDC, NEI, Michigan-based foundations, corporate partners, individual donors, and in collaboration with the SBA, the Michigan Entrepreneur Resilience Fund has secured funds to provide recovery loans to diverse entrepreneurs and small businesses from underrepresented groups in Michigan. This fund is intended to assist geographically and demographically disadvantaged individuals.

Resilience Fund Grant applications closed on Wednesday, July 8 at midnight.
Loan applications will remain open.

To view a list of grant and loan awardees, click here.

The Michigan Entrepreneur Resilience Fund is currently providing:

• Microloans: $5,000 – $10,000 loans with a 1-3 year repayment period. Loans are fixed rate (8%), fully amortizing, term loans.
• Loan Forgiveness: Microloans that meet SBA eligibility requirements will receive loan payment forgiveness for the first six months of the loan’s term. 

Webinar to help with required documents:

All loan applications require you to fill out a Cash Flow Forecast and Recovery Plan. If you need assistance with these documents, please watch our basic tutorial webinar on how to complete these documents.

Eligibility Requirements to apply for a Resilience Loan:

• Your business is ready to pivot, reopen and/or accommodate this new business environment.
• Your company has generated business revenue for at least 12 months and has less than $500K in annual revenue and you have fewer than 50 employees.
• You can demonstrate a negative impact on your business operations due to COVID-19.
• You are able to submit a Cash Flow Forecast and Recovery Plan. A template will be provided by Michigan Women Forward within the application.
• Michigan-registered and in good standing (provide Certificate of Goods Standing) with priority given to:
  • Businesses located in disadvantaged area within a U.S. Small Business Administration designated HubZone or
  • Opportunity Zone. Check the following maps: HubZones and Opportunity Zones.
• You are unable to access debt financing from a traditional source (i.e. banks, credit unions)
• You are able to provide the following documents:
  • Tax returns
    • Most recent business tax return (minimum of 1 year)
    • 3 years of personal tax returns (most recent filings)
  • Historical financial statements for your business (ideally a month by month P&L statement, however, quarterly will suffice)
  • Projected business financials (i.e. P&L, Cash Flow) for expected term of loan
  • Secondary income confirmation, if applicable (i.e. paychecks, stubs)

Candidates must meet these criteria and agree to share financials and other essential information as needed.

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Frequently Asked Questions:

1.What businesses are NOT eligible to apply?
Businesses that are franchises, nonprofit organizations, chains, adult entertainment or lending businesses.

2. What can loan money be used for?
– Rent
– Payroll
– Lease
– Utilities
– Gap funding for working capital
– Equipment needed to advance technology used in response to COVID-19
– Company revamp or conversion into a virtual business
– Assist company with altered demand for PPE-related products and services
– Purchase of inventory

3. When is the deadline?

Applications will be available May 12 and accepted on a rolling basis until funds are exhausted. Applications will be prioritized according to funding need and prospect for a successful recovery. The grant application deadline was Wednesday, July 8 at midnight.

4. What types of businesses are eligible for support?

Businesses eligible for support through this fund must meet the following criteria:

1. Be registered to conduct business in the state through the Department of Licensing and Regulatory Affairs
2. Provide proof of status as a business in good standing
3. Meet the U.S. Small Business Administration’s small business guidelines
4. Demonstrate an adverse impact based on COVID-19 or a business that can meet a new demand presented by COVID-19 and can demonstrate that the funds will be instrumental in the recovery of the business

This fund is not exclusive to high-tech companies or startups, but rather will support all small businesses eligible for support based on the criteria above.

5. What size are awards?

Microloans will be available between $5,000 and $10,000 based on the indicated need.

6. How will awards be prioritized?

Eligible candidates will be assessed based on demonstrated need, including, but not limited to:

• You are a low-to-moderate income business owner.
• Being located in a disadvantaged area within a U.S. Small Business Administration designated HubZones and Opportunity Zones.
• Demonstrating status as a low- to moderate-income borrower
• Qualifying as a diverse business that can demonstrate ownership by underrepresented groups including, but not limited to, veterans, minorities and low-income men and women.
• Business income of less than $500,000 in the previous year and fewer than 50 employees
• Michigan-registered with priority given to disadvantaged areas and the following counties:  Wayne, Oakland, Macomb, Genesee, Shiawassee, Lapeer, St. Clair, Tuscola, Sanilac, Huron, Kent and Ingham
• Demonstrating an inability to obtain credit by traditional means

7. What else is required?

If eligible, Michigan Women Forward will request applicants provide the following information:

• Description of business, product or service
• Cash flow history and projections that demonstrate proof of income loss and how capital infusion will allow the business to re-open and/or improve the viability of the current business, with detail as to how funds will be used
• Income statement and evidence that loan repayment can be made, demonstrating a cash flow forecast in the business financials

Apply Now