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Members,
The following information regarding the $409 million in business grants for afflicted businesses has been released. Under the Afflicted Business Relief Grant program, eligible businesses may begin applying at 8 a.m. on March 1 at the following link: https://www.michigan.gov/abr
Businesses must have their applications completed by 11:59 p.m. on Thursday, March 31.
Since this information was just released, the MLBA will be digging into the details and providing members with several updates over the coming weeks, so stay tuned.
The State Department of Treasury will also be hosting a set of webinars to assist those in the application process. More details regarding the webinars can be found at the link above.
- Thursday, Feb. 17 at 9-10 a.m. EST
- Tuesday, Feb. 22 at 10-11 a.m. EST
- Monday, March 7 at 1-2 p.m. EST
From the website:
Base Qualifications for the ABR Grant Program
Michigan businesses that were in operation on October 1, 2019, are eligible to apply for an ABR grant if:
Your business satisfies all of the following:
• Has a physical presence and conducts business operations in Michigan,
• Falls within one of the nine eligible business categories,
• Is not tax exempt under the Internal Revenue Code of 1986, 26 USC 1 to 9834,
• Is not a government entity, and
• Is currently open for business.
• Your business has a decline in total Michigan sales between calendar year 2019 and 2020 equal to or greater than 5 percent. If not, you are ineligible at this time. Businesses that were in operation on October 1, 2019, must certify that they have sustained a loss of at least 5% in total sales between calendar year 2019 and calendar year 2020.
• You are able to provide information and associated documentation on “Financial Hardship.” Businesses must be able to demonstrate financial hardship by providing information on the following fixed costs:
• Total non-residential property tax paid for CY 2020 (if applicable)
• Total lease costs paid for CY 2020 (if applicable) MI unemployment insurance taxes paid for CY 2020 (if applicable)
• The amount of on-premises retail liquor license fees (if applicable)
• The amount of license required inspection fees paid under the Michigan Food Inspection law (if applicable)
• The amount of all other business license or inspection fees (if applicable)
You must submit a complete application. A business will have qualified for a grant if, and only if, the business has submitted a completed grant application, has provided supporting financial documentation, has demonstrated that it experienced a decline in total Michigan sales of at least 5%, has certified and attested, under penalty of perjury, to the completeness and accuracy of all information and documents provided in the application, and has agreed to a Beneficiary Agreement that contains the terms and condition for use of the ABR grant award. Applications will be accepted up until March 31 at 11:59 p.m. EDT. Paper submissions are not accepted.
Michigan businesses that were in operation after October 1, 2019, but started operations no later than June 1, 2020, are eligible to apply for an ABR grant if:
Your business satisfies all of the following:
• Has a physical presence and conducts business operations in Michigan,
• Falls within one of the nine eligible business categories,
• Is not tax exempt under the internal revenue code of 1986, 26 USC 1 to 9834,
• Is not a government entity, and
• Is currently open for business.
• You must certify that your business was either fully or partial closed due to COVID-19 Public Health Emergency. Businesses that began operation after October 1, 2019, but before June 1, 2020, must certify that it was closed or partially closed due to an Executive Order or epidemic order issued by the Michigan Department of Health and Human Services.
• You are able to provide information and associated documentation on financial hardship. Businesses must be able to demonstrate financial hardship by providing information on the following fixed costs:
• Total non-residential property tax paid for CY 2020 (if applicable)
• Total lease costs paid for CY 2020 (if applicable)
• MI unemployment insurance taxes paid for CY 2020 (if applicable)
• The amount of on-premises retail liquor license fees (if applicable)
• The amount of license required inspection fees paid under the Michigan Food Inspection law (if applicable)
• The amount of all other business license or inspection fees (if applicable)
You must submit a complete application. A business will have qualified for a grant if, and only if, the business has submitted a completed grant application, has provided supporting financial documentation, has demonstrated that it experienced sufficient financial hardship, has certified and attested, under penalty of perjury, to the completeness and accuracy of all information and documents provided in the application, and has agreed to a Beneficiary Agreement that contains the terms and condition for use of the ABR grant award. Applications will be accepted up until March 31 at 11:59 p.m. EST. Paper submissions are not accepted.
The Nine Eligible Business Categories
1. Entertainment Venues: These businesses infer the use of a facility for the purposes of spending time engaged as a spectator to a ticked event. Eligible businesses that fall within this category include:
2. Recreational Facilities and Public Places of Amusement: These businesses infer the use of a facility for purposes of spending time engaged in some identifiable leisure activity, not as a spectator to a ticketed event. Eligible businesses that fall within this category include:
3. Barbers and Cosmetologists: Cosmetologists operating as a business, barbers operating as a business, cosmetology shops and barber shops business all fall within this eligible business category. Applicants who fall under “Cosmetologist or Barber” will be required to verify their license status.
4. Exercise Facilities: These businesses have a facility in which individuals participate in individual or group physical activity. Eligible businesses that fall within this category include:
5. Food Establishments: These businesses all have a facility in which food or drink is prepared for direct consumption through service on the premises or elsewhere, and any other eating or drinking establishment or operation where food is served or provided for the public. Eligible businesses that fall within this category include:
• Fixed or mobile restaurant
• Coffee shop
• Cafeteria
• Short order café
• Luncheonette
• Grill
• Tearoom
• Sandwich shop
• Soda fountain
• Tavern
• Bar
• Cocktail lounge
• Nightclub
• Drive-in
• Industrial feeding establishment
• Private organization serving the public
• Rental hall
• Catering kitchen
• Delicatessen
• Theater
• Commissary
• Food concession
6. Nursery Dealers and Growers: Nursery Dealers and nursery growers (both businesses) fall within this eligible business category. Applicants who fall under “Nursery Dealer or Nursery Grower” will be required to verify their license status.
7. Athletic Trainers: Athletic trainers operating as a business fall within this eligible business category. Applicants who fall under “Athletic Trainer” will be required to verify their license status.
8. Body Art Facilities: Body art facilities fall within this eligible business category. Applicants who fall under “Body Art Facility” will be required to verify their license status. Body art facility" means the location at which an individual does 1 or more of the following:
9. Hotels and Bed & Breakfast Establishments: Hotels and bed & breakfasts fall within this eligible business category.
• “Hotel” means a building or structure kept, used, maintained as, or held out to the public to be an inn, hotel or public lodging house
• “Bed & Breakfast" means a single-family residential structure that meets all of the following criteria:
• Has 10 or fewer sleeping rooms, including sleeping rooms occupied by the innkeeper, 1 or more of which are available for rent to transient tenants.
• Serves meals at no extra cost to its transient tenants.
• Has a smoke detector in proper working order in each sleeping room and a fire extinguisher in proper working order on each floor.
• Landlord/tenant relationships are not within the scope of this program’s relief.
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