WYOMING, Mich. — Small businesses hobbled by the coronavirus pandemic would be eligible for grants of up to $10,000 each, under legislation aimed at helping mom and pop operations stay afloat.
“I think small businesses really are the heroes of the economy, along with the employees,’’ state Rep. Tommy Brann said. “I want to save as many as we can.’’
Brann, a restaurateur, introduced a bill that would fund the program at $50 million.
“I’ve had a lot of phone calls with small business owners in tears, worried they’re going to lose everything,’’ Brann said. “Businesses that have been in their families for years – they are shook up and don’t know what they’re going to do.’’
The program would run through the Michigan Strategic Fund; Michigan’s general fund would not be affected, said Brann, R-Wyoming. He also said he would not apply for a grant, even though his steakhouse on South Division Avenue in Wyoming would qualify.
A similar program introduced in early spring provided $10 million in grants for businesses impacted by the COVID-19 outbreak.
“And that went so fast,’’ Brann said. “We had a million dollars in Grand Rapids to give to these small businesses and it was gone within weeks.’’
Under House Bill 5791, grants of up to $10,000 would be available to businesses with 50 or fewer employees affected by the COVID-19 shutdown. The money could be used to pay employees, for rent or mortgage payments, utility bills and similar expenses.
The Michigan Retailers Association says small businesses were hit hard during the shutdown. They continue to struggle.
Supporting local retailers, spokeswoman Meegan Holland said, is important to keeping communities viable.
"I hope that shoppers will make the connection between their communities and how they spend their shopping dollars,'' Holland said. "Because no amount of convenience or saving a few bucks online is worth looking at your downtown and seeing boarded-up buildings.’’
Although loan programs have been set up to help small businesses, taking on additional debt could be too much of a financial burden when sales are down, she said.
“We hope whatever programs are available to retailers are grants, rather than loans,’’ Holland said. “Retailers are already in debt. And to survive, they’ve got to be able to come back with some financial stability.’’
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