Paycheck Protection Program Loan Application Support Available for Michigan Minority-Owned and Other Underserved Small Businesses
FOR IMMEDIATE RELEASE: March 15, 2021
(LANSING, MICH) State officials and leaders from the Michigan Bankers Association, Community Bankers of Michigan, the Michigan Credit Union League, and the National Business League are urging Michigan’s minority-owned and other underserved businesses to apply for forgivable loans through the federal Paycheck Protection Program (PPP) before the current March 31, 2021 deadline. Participating banks, credit unions, and Community Development Financial Institutions are available to support new and existing small business customers as they navigate through the PPP process.
“The PPP has delivered billions of dollars to Michigan’s small businesses, but we know that many minority-owned small businesses have not had the opportunity to receive much-needed support through this federal program,” said Lt. Gov. Garlin Gilchrist II. “Our federal partners have recently lifted certain restrictions to make securing loans easier for low-income, rural, minority-owned, and other underserved businesses, but time is running out. Businesses should contact a lender right away to get the support they need.”
While loans can be obtained through any participating banks and credit unions, small business owners may wish to pursue a PPP loan through a Community Development Financial Institution (CDFI) which provides access to financial products and services for residents and businesses in low-income communities to expand economic opportunity. CDFIs offer specialized customer service to underserved communities, including those customers with limited or no credit history or those that require additional support. To find a participating lender, small businesses should visit the SBA’s Lender Match or search for a participating lender in their area. Consumers are encouraged to call or check the website of the lender before visiting to learn about additional steps being taken to protect consumer and employee safety during the pandemic, including offering services by appointment or online.
“Michigan's state-chartered banks and credit unions continue to step up to support the communities they serve through programs like the PPP, and we are pleased to work with them to clear barriers and raise awareness to better support Michigan’s minority-owned businesses,” said Michigan Department of Insurance and Financial Services Director Anita Fox. “If your business does not have a banking relationship with a participating financial institution, shop around for a participating state-chartered bank or credit union to support your business through the PPP process.”
“Michigan banks applaud the focus of the Small Business administration on minority-owned businesses in the Pay Paycheck Protection Program by the March 31 deadline,” said T. Rann Paynter, president & CEO, Michigan Bankers Association. “We encourage small business owners to reach out to their local banker.”
The PPP, established in 2020 by the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act), provides forgivable loans to small businesses so they can maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead. The U.S. Small Business Administration (SBA) will forgive loans if all employees are kept on the payroll for eight weeks and the money is used in accordance with the program requirements. The Biden-Harris Administration recently instituted changes to the PPP to ensure more equitable access for underserved businesses, and loan forms are available in more than a dozen languages, including Arabic, Chinese, and Spanish.
Ninety percent of Michigan’s 66 state-chartered banks and nearly half of Michigan’s 137 state-chartered credit unions have participated in the PPP. As of Feb. 28, 2021, more than $21 billion in forgivable loans have been provided to more than 110,000 of Michigan’s small businesses, according to SBA data.
DIFS can assist consumers and businesses with questions or disputes that cannot be directly resolved with their financial institutions. Contact DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint at Michigan.gov/DIFScomplaints.
The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, Twitter, or LinkedIn.