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MI Paycheck Protection Program Guidance

April 13, 2020
Lt. Gov. Garlin Gilchrist II and former Lt. Gov. Brian Calley teamed up to announce a coalition to support small businesses and improve access to federal loans. The Michigan Paycheck Protection Program website was launched as a collaboration between the Small Business Association of Michigan, Michigan Association of Certified Public Accountants (MICPA), the Michigan Economic Development Corporation and the Michigan SBDC and includes key eligibility information, videos and instructions to help with the application process, information on authorized SBA lenders and more.

Here is what you need to know when considering applying for the Michigan Paycheck Protection Program (MiPPP):

Find out if you qualify by taking a short questionnaire.

Save your small business

If the MiPPP funds are used appropriately, the small business loan will be forgiven and you will only have to pay the accrued interest.

Keep Michigan Strong

By keeping your small business going during COVID-19, you will be helping the Michigan economy thrive during the pandemic.

Retain Your Talent

With the MiPPP you will be able to retain or even rehire team members laid off due to the pandemic.

FAQ: Understanding MiPPP

What is the Small Business Paycheck Protection Program (MiPPP)?

The MiPPP provides small businesses in Michigan COVID-19 relief, giving funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

How do I apply?

Paycheck Protection Program loans are only available through your local SBA certified bank or credit union. Start by calling your existing bank or credit union!

Who should consider the MiPPP?

MiPPP is a forgivable loan, tax-free at 1.0%. Small business employers (under 500 employees), nonprofits (501(c)(3)), sole proprietors and independent contractors should all consider applying for MiPPP funding.

Who is eligible for MiPPP?

Michigan Small businesses with 500 or fewer employees—including nonprofits, veteran organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— affected by COVID-19 are eligible. Michigan businesses with more than 500 employees are eligible in certain industries.

Do I have to keep my staff employed? What about those who we had to let go as a result of COVID-19?

Loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels for at least 8 weeks after the origination of the loan. Loan forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness is tax-free.

When can I apply?

April 3, 2020! You should apply as quickly as you can because there is a funding cap.

What the differences between MiPPP and Economic Injury Disaster Loan (EIDL)?

Download a comparison of these two loan offerings: Cares act EIDL – MiPPP comparison PDF

Where can I get more information?

Below are links to additional resources:

Who are the lenders participating?

Follow the link to find participating lenders: Search for lenders

Have more questions?

If you have just a quick question or need help completing your application, please email your question and contact information to caresresources@micpa.org