New MI Local Biz program will allow Michigan-based small businesses to raise funds from their customers through donation-based crowdfunding model, win matching dollars through MEDCProgram Description In response to the COVID-19 crisis, The Michigan Economic Development Corporation, in conjunction with the Detroitbased crowdfunding platform, Patronicity, has developed “MI Local Biz”, a creative funding mechanism to offer quick access to capital for small local businesses in this great time of need. The MEDC will match crowdfunding raises on a 1:1 basis up to $5,000 for eligible small businesses experiencing economic challenges as a result of COVID-19.
Pre-Check Applications Open Monday, May 18th at 8:00am est. Applicants will be accepted and reviewed for eligibility on a first come first serve basis until funding is allocated.
Please review the Overview Document click here for full details on the rules & eligibility of the MI Local Biz program.
How it Works
The MI Local Biz program is a matching grant program that utilizes donation-based crowdfunding to generate public interest, to raise funds to assist small businesses negatively affected by the COVID-19 crisis, and help position that business for re-opening as the crisis eases. By utilizing web-based donations, businesses are accessible to anyone willing to make a donation in real time. This crowdgranting model engages the public as each person contributes in the effort to assist their local businesses. In addition, this model instills community pride as residents become a conduit of support for their local economy.
“It’s critical that we are able to support small businesses in our community through the COVID-19 pandemic. They are a large part of what makes Bay City unique and are vital to both our local economy and quality of life,” Dana Muscott, City of Bay City Manager.
What businesses are eligible?
Businesses eligible to receive the MEDC match of local donations associated with the crowdfunding campaign must
meet all of the qualifications below:
1. A Michigan-based small business operating in state that has been directly impacted by the COVID-19 crisis.
2. The business retails products and or services face-to-face within the state of Michigan. Examples Include:
o Restaurants / Bars / Coffee Shops
o Salons / Day Spas
o Retail Shops
o Hardware Stores
o Any other small business retailing products or services face-to-face within the state of Michigan
3. The business has 25 employees or less
4. The business is able to demonstrate an income loss as a result of the COVID-19 crisis
5. Businesses with multiple locations are only eligible to undergo one crowdfunding campaign. That campaign is limited to the $5000 matching grant maximum.
While all businesses meeting the above criteria are eligible, priority will be given to businesses meeting two or more of the following location-based criteria:
• Located in Geographically Disadvantaged Areas
• Engaged or Certified Redevelopment Ready Community *Bay City and Auburn are eligible cities
• Traditional Downtowns or Neighborhood Commercial Districts
For more information visit: https://www.patronicity.com/milocalbiz
Ineligible businesses include: franchises or chains, marijuana-related businesses, and or any other business deemed ineligible by the MEDC. Businesses who have received support from any other COVID‐19 response programming from the Michigan Economic Development at the time of application will also be considered ineligible