Mackinac Economic Alliance

Ph: (906) 984-2095
330 N. State St., St. Ignace, MI 49781

Mackinac Economic Alliance

COVID Disaster Assistance Update

New Information June 1st, 2020

The United States Department of Agriculture’s (USDA) Coronavirus Food Assistance Program is available to provide direct relief to producers who have suffered losses during the 2020 marketing year due to COVID-19. Last week, the USDA announced the Coronavirus Food Assistance program, which will use funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act, the Families First Coronavirus Response Act, and other USDA existing authorities.

This program, which can be found through this link, will provide $19 billion immediate relief, which includes direct support to agricultural producers as well as the Food Box Distribution Program:

The programming incudes:

  • CFAP will provide direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted; and
  • CFAP will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.

Additional questions about food and agriculture COVID-19 can be emailed to email hidden; JavaScript is required.


COVID-19 testing criteria in Michigan has been expanded to include individuals with mild symptoms and essential workers that have to leave home to work (even if they don’t have symptoms). Find your nearest testing location HERE.


Main Street Lending Program

The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Term sheets for each facility and Frequently Asked Questions (FAQs) (PDF) providing more information regarding eligibility and conditions can be found when you click HERE.

Michigan Reopen Main Street Recovery Resources

Main Streets across Michigan are currently operating in a new reality due to the impact of COVID-19. As a way to help Main Street directors, downtown development authority managers, small business owners, and local stakeholders navigate the complexities of re-opening their local business districts – the MEDC has partnered with Reopen Main Street to compile a variety of recovery resources into one, easy-to-use website. The new website includes reopening strategies, ideas, hints, and tips for businesses, business districts, and organizations. View Michigan’s Reopen Main Street website here:

Additional Resources Available Online

The Mackinac Economic Alliance is sharing the recommendations of the US Small Business Administration & Small Business Development Center for Businesses and Non-Profits to file for the SBA Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).  In addition to loans, each program includes a portion of funding that will not need to be repaid.  Please be sure to watch this space and our Facebook page for updates.

We have two webinars scheduled next week.  We will be using Facebook Live and the recordings will live on the Reopen Main Street Facebook Page.

HF Issue Update:  PPP Extension Signed into Law

As expected, on Friday, June 5th President Trump signed into law the Paycheck Protection Flexibility Act (PPFA), which extends and expands the previous Paycheck Protection Program (PPP). Thus far the Small Business Administration (SBA) has worked with more than 5,000 lenders to approve 4.5 million loans totaling $510.2 billion of the program’s $659 billion in total lending authority as of May 30. HF reported on some of these changes last week after the bill passed the U.S. Senate, but provides below an expanded look at what is new and different.

What are the key changes?

PPP recipients will now have 24 weeks, instead of 8 weeks, or a cut-off date of Dec. 31st – whichever comes first – to use the funds and reach full forgiveness.
Borrowers can use the 24 week period to restore their workforce levels and wages, by December 31st, a change from the previous June 30th deadline.
Previously businesses were required to spend at least 75% of the PPP loan on payroll for the loan to be forgiven, but now that requirement has been lowered to 60%. It is worth noting that this is now a cliff threshold for forgiveness, meaning that if 60% spent on payroll is not reached none of the loan will be forgiven.
Businesses will not lose any loan forgiveness eligibility if they can show that employees declined to return to their jobs.
Any amount not forgiven is required to be repaid over five years, instead of two years, and the interest rate remains at 1%.
Businesses that receive a PPP loan can also delay payment of their payroll taxes, which was previously prohibited under the CARES Act.
For new businesses intending to apply for the program a cutoff date of applications will remain June 30th.

How do I apply for forgiveness?

Similar to the application process, we expect that each bank will have their own separate portal that businesses will use for the forgiveness process to accompany the SBA forgiveness application. Your banker should reach out with specific instructions.
In addition to the bank’s online application, borrowers will need to complete and submit a Form 3508 PP Loan Forgiveness Application to their bank to apply for forgiveness. This application will require businesses to calculate payroll costs during the (now 24 week) covered period, calculate non-payroll costs, and arrive at a final forgiveness amount.

When do I apply for forgiveness?

Before the changes from the Paycheck Protection Flexibility Act, business owners had six months to apply for forgiveness. This may be extended under the new Act. Once you file the forgiveness application, your bank has 60 days to review it and notify the Small Business Administration (SBA) of the amount of forgiveness. The SBA will have 90 days to approve the bank’s decision.

As always, anyone currently holding or considering the PPP should talk to their bank and accounting professions to make sure you understand all current rules and guidance.

When preparing your application to either the EIDL or PPP program, please consider the recommendations of the SBA & SBDC to reduce your funding needs by:

  • Request your Bank to waive loan payments for the next 2 – 3 months.
  • Request your Landlord to defer lease/rent payments for 2 – 3 months.
  • Request Vendors / Creditors to suspend payments for 2 – 3 months.
  • Apply for SBA funding for remaining needs for the next 2 – 3 months.
  • Laid-Off Employees should be directed to apply for Expanded Unemployment Benefits.

Remote Learning and Resources Webpage

In tough times, such as the uncertainty surrounding the current novel coronavirus pandemic, we recognize that accessing the vast knowledge and resources of MSU is more important than ever. The MSU Extension Remote Learning and Resources online space can bring you the resources you need, wherever you need them.

Content areas include:

Adult Online Learning Resources
COVID-19 Pandemic and Tourism
Educational Resources for School Closures
Family and Community Resources
Health and Wellness Resources
Local Government Resources for Novel Coronavirus Response

Local Government Resources for Novel Coronavirus Response webpage

MSU Extension’s Local Government Resources for Novel Coronavirus Response page is updated regularly with resources and webinars to help Michigan local governments navigate novel coronavirus pandemic. Page content is organized into:

Budget and Finance
Operating Online and Remotely
Reopening Resources
Resources for Tribal Governments

COVID-19 Response & Preparedness Plan

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Supporting Your Small Business During COVID-19


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