TRAVERSE CITY — The COVID-19 pandemic delivered lingering monetary ache — and a sequence of much-needed doses of economic reduction.
Some northwest Decrease Michigan residents struggled to make ends meet in 2020. Others, bolstered by supplemental unemployment advantages, took in more cash than regular due to supplemented unemployment advantages.
Some companies struggled as stay-at-home orders and social distancing necessities sliced deeply into their backside strains. Some companies and nonprofits snagged grants and loans that helped them make lease funds and maintain employees on the payroll.
The federal authorities in 2020 pumped an enormous amount of cash
into the pockets customers and companies. Efforts to maintain the economic system rolling to this point have saved many companies chugging alongside regardless of the drag of coronavirus.
Efforts to help enterprise in northwest Decrease Michigan originated from a number of sources, together with:
- Expanded unemployment advantages delivered cash on to folks pressured by the pandemic to remain house for .
- Within the five-county area, 3,916 Paycheck Safety Program loans — lots of which probably could also be forgiven, successfully changing them into grants — introduced almost $350 million to regionally primarily based firms in 2020.
- Financial Harm Catastrophe Loans in 2020 injected greater than $11 million into the five-county area.
- Regional donations from varied sources, funneled via Enterprise North Funding and Growth, delivered $503,000 in grants to space small companies in 2020.
An uncommon yr
“Like everyone else, we had been in a really distinctive state of affairs final yr. We had so many companies that had been mandated to close down,” mentioned Laura Galbraith, government director of Enterprise North Funding & Growth.
The group was created to handle seed cash that cycles via revolving mortgage funds: As enterprise loans are repaid, the cash is recycled into new loans to different companies.
Enterprise North created a Regional Resiliency Fund early in 2020 to assist small companies with 9 or fewer workers survive the COVID-19 pandemic. This system launched in Could 2020 with a $200,000 award from the Shoppers Power Basis. The inspiration made an extra $50,000 award in September.
By 2020, different funding sources bolstered the Regional Resiliency Fund.
Area people foundations chipped in: Grand Traverse Regional Neighborhood Basis, Petoskey-Harbor Springs Neighborhood Basis, Leelanau Township Neighborhood Basis, Manistee Neighborhood Basis. The hassle additionally acquired funding from the DTE Power Basis and Cherryland Electrical Cooperative, Fifth Third Financial institution, TCF, Huntington Financial institution and particular person neighborhood members.
All informed, the Regional Resiliency Fund in 2020 distributed $503,000 to 200 firms.
Extra grants coming
The Shoppers Power Basis contributed one other $200,000 in March 2021 to assist fund a brand new spherical of grants this spring. Galbraith mentioned Enterprise North has begun fundraising efforts, already has added one other $100,00 to the pot, and hopes to have the ability to grant a complete of $500,000 this yr.
A variety of companies have benefitted from the grants. The necessity has advanced because the pandemic has dragged on.
“At first, it was really pressing want,” mentioned Galbraith. “Companies had been mandated to shut, some couldn’t entry PPP or different funding sources. However as yr progressed, we discovered there have been many small companies that had been adapting and needing funds for out of doors furnishings or probably shifting to on-line gross sales.”
Manistee’s Conservatory of Dance is an instance of 1 enterprise that has acquired grants from multiple supply to stay in operation.
It acquired one grant via a program administered by Networks Northwest and one other, for $5,000, via Enterprise North’s Regional Resiliency Program.
The grants “helped pay for hire and utilities, most significantly paying our lecturers,” mentioned Shelli Golembiewski, co-owner of Conservatory of Dance.
She and co-owner Tarah Fancher purchased the enterprise seven years in the past.
“We, each of us, grew up dancing in lessons because the starting of the enterprise again in 1991,” Golembiewski mentioned. “We had been little 5-year-olds in dance class at the moment. After which grew up there and took it over as soon as we had been sufficiently old.”
They needed to shutter the studio for a lot of 2020, however now are dancing again into motion.
“We had been shut down for an excellent a part of the yr final yr,” she mentioned. “We tried to pivot and did some type of Zoom dance lessons, which labored for a short while — however it simply wasn’t fairly the identical.”
The studio reopened within the fall, however at a 50 % reduce to the conservatory’s regular scholar load of 180.
Grants provide help
“We’ve taken an enormous hit,” Golembiewski mentioned. “We’re doing OK, with the grants we’ve acquired and slicing prices. We’re doing truthful.”
Regional Resiliency Program grants in Manistee County, which totaled $40,000, had been funded by a mix of a $20,000 award from the Manistee Industrial Growth Company, a $10,000 grant from the Manistee County Neighborhood Basis via its Neighborhood Response Fund, and $10,000 via the Regional Resiliency Program.
The Manistee IDC is a 62-year-old nonprofit coordinating county’s participation within the Regional Resiliency Program, which is run by Enterprise North Funding and Growth.
A separate program, the Northwest Small Enterprise Survival Grant Collaborative, granted a complete of $2.375 million to 181 firms and nonprofits in 2020. The typical grant was for $13,122.
In accordance with a launch from Networks Northwest, the Small Enterprise Survival Grants funding via the Michigan Strategic Fund and the Michigan Financial Growth Company was for “small companies that skilled a big monetary hardship because of the COVID-19 emergency ‘gatherings and face masks order’ issued by the Michigan Division of Well being and Human Providers in December 2020.”
The collaborative consists of Networks Northwest, Northern Lakes Financial Alliance, Northwest Michigan Works!, Northwest Small Enterprise Growth Middle, Traverse Join, Alliance for Financial Success and Manistee Space Chamber of Commerce. The collaborative reviewed almost 800 purposes for grants of as much as $20,000 every.
Artwork’s Tavern acquired a grant from the collaborative for $15,000, as did the Music Home Museum, North Peak Brewing, the Traverse Symphony Orchestra and The Cabbage Shed. The Traverse Metropolis Elks Lodge #323 acquired $20,000, as did Yen Yoga & Health, Mode’s Bum Steer and the Girls’s Useful resource Middle for the Grand Traverse Space. Carlson’s Fishery obtained a $10,000 grant, as did Buckley Roadside Bar Inc., Boon Nation Retailer and Northern Michigan Equine Remedy.
On Friday, March 27, 2020, the Coronavirus Help, Reduction, and Financial Safety Act (CARES Act) created, amongst many different issues, the Paycheck Safety Program. The PPP was a $350 billion support bundle designed to help our nation’s small companies most affected by the pandemic. Since that point, funding for this system has nearly tripled to $953 Billion.
As of March 28, 2021, the PPP had $734 billion in authorized lending, based on a launch from U.S., Rep. Jack Bergman. That’s 8,728,494 loans by 5,476 lenders throughout the nation.
Greater than 5,300 companies and non-profits in northwest Decrease Michigan acquired CARES Act Mortgage funding through the Paycheck Safety Program and Financial Harm Catastrophe Loans in 2020. The mortgage totaled about $515 million, which interprets to about $4,200 per worker.
And the federal government continues to provide.
President Joe Biden on March 30 signed into legislation the Paycheck Safety Program Extension Act of 2021. It extends the earlier March 31, 2021 deadline by two months and supplies an extra 30 days for the U.S. Small Enterprise Administration to course of loans submitted previous to the brand new Could 31, 2021 deadline.
This system hasn’t been with out issues. As of the top of March, about 50,000 PPP loans had been nonetheless slowed down with error code points.
As of the top of March, about $72 billion remained out there within the PPP.
Monetary loss nonetheless looms
About 40 % of Individuals mentioned they’re nonetheless feeling the monetary impression of the lack of a job or revenue inside their family because the financial restoration stays uneven one yr into the coronavirus pandemic.
A ballot launched in March by The Related Press-NORC Middle for Public Affairs Analysis offered proof that the pandemic has been devastating for some Individuals, whereas leaving others nearly unscathed and even in higher form — no less than in the case of their funds. The end result typically relied on the kind of job an individual had and their revenue degree earlier than the pandemic.
The pandemic has notably harm Black and Latino households, in addition to youthful Individuals, a few of whom are actually going via the second main financial disaster of their grownup lives.
The ballot confirmed that about half of Individuals say they’ve skilled no less than one type of family revenue loss through the pandemic, together with 25 % who’ve skilled a family layoff and 31 % who say somebody within the family was scheduled for fewer hours. Total, 44 % mentioned their family skilled revenue loss from the pandemic that’s nonetheless having an impression on their funds.
The ballot outcomes are in step with latest financial information. Roughly 745,000 Individuals filed for unemployment advantages the week of Feb. 22, based on the Labor Division, and roughly 18 million Individuals stay on the unemployment rolls.
Thirty % of Individuals say their present family revenue is decrease than it was when the pandemic started, whereas 16 % say it’s greater and 53 % say there’s been no change. About half of those that skilled any type of family revenue loss through the pandemic say their present family revenue is decrease than it was.
The AP-NORC ballot of 1,434 adults was performed Feb. 25-March 1 utilizing a pattern drawn from NORC’s probability-based AmeriSpeak Panel, which is designed to be consultant of the U.S. inhabitants.