DEARBORN SMALL BUSINESS RELIEF GRANT

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Overview 

To support the viability of Dearborn’s most affected small businesses and entrepreneurs during the COVID-19 crisis, a partnership of New Economy Initiative (NEI), ACCESS, the City of Dearborn and its East and West Dearborn Downtown Development Authorities, and the Warren and Dix/Vernor Business Improvement Authorities will administer an emergency fund that provides working capital grants in amounts up to $5,000 to qualifying applicants. These grants are intended to help businesses for 30 days while other resources become available. The following is the investment criteria for financial support:

Criteria 

• Business owners must provide either proof of their corporate tax returns for 2018 or 2019; or proof of household income based on their 2018 or 2019 household tax returns.
• Business owners will need to provide their Social Security Number (SSN) OR Individual Taxpayer Identification Number (ITIN).
• Businesses must be for-profit. Nonprofit organizations are not eligible.
• The business must have 17 employees or less, including all owners of the business and/or sole proprietor.
• If a business owner operates more than one business, only one application for a single business will be accepted.
• The business must have a business address in the city of Dearborn.
• The business must have experienced a loss of income due to COVID-19.
• Grants may be used to cover the day-to-day operating expenses of the business, such as rent, payroll, utility bills or losses due to destabilizing events.
• Grants may be used for stabilizing businesses by having access to cash flow to re-stock or re-inventory their product upon re-opening to the public.
• Grants may be used for transitioning to e-commerce, curb-side pick-up and delivery integrations.
• Agree to share financials and other essential information for the application

Priority Businesses  

The Dearborn Small Business Relief Grant is designed to support small, vulnerable businesses including:

• Service businesses: A service-based business sells something they do, rather than a physical product. This could include, but is not limited to, lawn care, cleaning, hair care, graphic design and consulting.
• Freelancers and those in creative industries.
• Makers: Makers produce, build, sew or craft the products that they sell. These can include, but are not limited to, jewelry, clothing, furniture and home goods.
• Home-based businesses: A home-based business manages most of their business operations from their home rather than a commercial location.
• Small businesses with a physical location in Dearborn.
• Restaurants and other prepared food businesses: A business that sells prepared food in either a fixed, physical location, or from a vehicle or small kiosk-like stand.
• Retail businesses with a physical location in Dearborn.
• The business owner(s) has a low or moderate household income (≤80% of the Area Median Income). If more than one owner, each owner must meet this criterion. Proof of household income from their 2018 or 2019 household tax returns must be submitted to validate this.

What businesses are NOT eligible to apply?

• Businesses that are franchises and chains are not eligible to apply.
• Independent contractors operating multilevel or network marketing businesses (such as Avon, Mary Kay, 5LINX, Pampered Chef, etc.) are not eligible to apply.
• Independent contractors working on gig platforms (such as Airbnb, Fiverr, Uber, Lyft, Instacart, etc.) are not eligible to apply.
• Nonprofit organizations are not eligible to apply.
• Business owners who previously have been awarded a Michigan Small Business Relief Grant or loan from the Wayne County/TCF Small Business Relief Loan Fund are not eligible to apply.

Up to what amount of money can a business apply for?

• Grants will be awarded in an amount up to $5,000 for businesses with a physical location.
• Grants will be awarded in an amount up to $2,500 for home-based businesses.
• To support the fund in serving those with the greatest need, business owners will be asked to note and substantiate their monetary need on the application.

What can the grant be used for?

• Grant money may only be used for the operating expenses of the awarded business. The operating expenses are defined as the day-to-day trading operations of the business, such as covering payroll, rent/mortgage, inventory and utilities.
• Grants may be used for stabilizing businesses by having access to cash flow to re-stock or re-inventory their product upon re-opening to the public.
• Grants may be used for transitioning to e-commerce, curb-side pick-up and delivery integrations.
• Grants may not be used for any non-business, personal expenses.

Is there a location requirement?

The fund will be available to all Dearborn-based businesses meeting the eligibility requirements.

Can I apply for more than one business?

Funds will be granted to only one business per applicant. Each business will receive only one grant. An applicant who owns more than one business should determine which of their businesses is in most need of the grant, and only apply for that business.

When will applications be accepted?

We will accept applications from beginning Monday, April 27, 2020 at 9am until Friday, May 1, 2020 at noon. Applications must be submitted online on the ACCESS website. No other form of application submission will be reviewed.

In preparation, business owners should be collecting documents to verify eligibility, such as their 2018 or 2019 tax return; profit and loss statement for 2019; mortgage note or lease; utility bills; and receipts. Michigan business entity identification number and employer identification number (EIN) will be required. Click here for the Michigan business entity search to look up your Michigan business entity ID number.

When will decisions be made on individual applications?

Applications will be reviewed and decisions made before the second week of May. A grant review committee from the Dearborn area will review and approve/deny the grant applications. Grants will be disbursed by ACCESS. Be prepared to provide your banking information if selected. Awardees will be notified by the second week of May, via email.

How will payments be made?

Grantees will receive funds via automatic payment (ACH) deposited to their bank account or printed check. Grantees should have their business account and routing numbers available for quicker payment. CashApp, Venmo, PayPal and other platforms are not acceptable payment options.

What factors do you consider when evaluating applications?

Applications will be evaluated based on all the data requested. Not all applicants will be funded.

There are several measures that will cause an application to be evaluated more favorably. These include, but are not limited to, the following (in no specific order):

• Documentation of business registration (Michigan business entity identification number, uploaded Certificate of Assumed Name, etc.) is more favorable than companies lacking any documentation.
• A high percentage of Dearborn-based employees is more favorable than companies with no/low percentage of local employees.
• A business bank account will score higher than a personal bank account.
• Companies with owners without a separate full-time job will be more favorably viewed than companies whose primary owner has a separate full-time job.
• Companies that were operating successfully and profitably, but were negatively impacted by this crisis, will be evaluated more favorably than companies that were struggling before this crisis.
• The business owner has a low or moderate household income (≤80% of the Area Median Income).

Does my income qualify as ≤ 80% of the Area Median Income?

Household size    1               2               3                  4                5               6

80% of AMI          $44,000    $50,250    $56,550    $62,800     $67,850    $70,880

Chart data source: U.S. Department of Housing and Urban Development

Who do I call if I have questions about my application?

We are not able to respond to applicant inquiries via phone and email. Please refer to our website for information.

Are there business consultation services and technical assistance available beyond this grant?

Yes. Through the collaboration of the various business organizations in Dearborn, there is a Business Assistance Team consultation service available for all applicants. You will be notified of this opportunity via email.

The Business Assistance Team is made up of the following business and government organizations, including: ACCESS, City of Dearborn, East and West Dearborn Downtown Development Authorities, Warren and Dix/Vernor Business Improvement Authorities, Wayne County, MEDC, Dearborn Area Chamber of Commerce and American Arab Chamber of Commerce.