Michigan Financial Institutions Step Up to Support Small Businesses Amid COVID-19 Crisis through the Paycheck Protection Program
More than 120 of Michigan’s state-chartered banks and credit unions have stepped up to provide Paycheck Protection Program (PPP) loans to support small businesses facing financial hardship due to the COVID-19 pandemic. Ninety percent of Michigan’s 68 state-chartered banks and nearly half of Michigan’s 137 state-chartered credit unions have participated in the PPP to support Michigan small businesses.
“Michigan’s small businesses and their employees should know that our administration will do everything within our power to support them during these challenging times,” Lt. Gov. Garlin Gilchrist II said. “We are grateful for all of Michigan’s banks and credit unions who worked quickly to ensure that small businesses in our state have unprecedented access to the funding necessary to come back stronger than ever when it is safe to do so.”
The PPP, established by the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act), provides forgivable loans to small businesses so they can maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead. The U.S. Small Business Administration (SBA) will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for in accordance with the program requirements payroll, rent, mortgage interest, or utilities.
To date, more than $16 billion in forgivable loans were provided to more than 110,000 of Michigan’s small businesses, with an average loan amount of $146,999, according to SBA data. Nationally, Round One of funding of the PPP provided nearly $350 billion in loans, and Round Two was allocated an additional $310 billion.
“The Michigan Department of Insurance and Financial Services (DIFS) is focused on assisting Michiganders as they manage the financial challenges caused by the pandemic” said DIFS Director, Anita Fox. “The Department is proud to have supported Michigan’s financial institutions as they secured a record number of forgivable loans for the state’s small businesses, an important first step toward our economic recovery.”
Michigan small businesses experiencing a financial hardship due to COVID-19 are encouraged to reach out directly to their financial institution to learn more about the PPP and other relief options that may be available. DIFS can assist consumers and businesses with questions or disputes that cannot be directly resolved with their financial institutions. Contact DIFS at 877-999-6442, or file a complaint at [email protected].
Information around this outbreak is changing rapidly. The latest information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus.