The Hub’s Small Business Development Services and Direct Grants

More than $400,000 will be available in direct grants to those businesses who work with their County’s Hub Small Business Resource Navigator and that participate in at least one Hub program, event, or service within the 6 months prior to the Award. 

In recognition that the central upper peninsula is already home to many organizations which offer some type of support for small businesses, the Hub’s main goal is to expand access to those instead of building new programs. In general, resources and support fall into three categories:

• Technical assistance including 1:1 coaching, educational events, handbooks, guidance documents, webinars, etc.
• Assistance in pursuing outside financial resources (loans, grants, etc.)
• Direct grants via the Hub (must be allocated by February 2026)

Existing programs from partners including the LSCP, Innovate Marquette SmartZone, Accelerate U.P. and the Small Business Development Center (among others) will be available in addition to services from local economic development organizations, as well as state and federal organizations. The Hub will also help connect teams of students from Northern Michigan University’s School of Business to Hub small businesses participants via the NMU Main Street Program, a new program that has been in development for years and that the Hub has finally provided the avenue to bring to fruition. Tribal businesses will also have a dedicated Small Business Navigator and be able to access resources and support from tribal governments and organizations, including the Keweenaw Bay Indian Community and Sault Tribe Thrive.

Eligibility

Businesses that participate in the Hub’s programs, events, support and services within the 6 months prior to the Award are eligible to apply for Hub Direct Grants. 

To receive support and services from The Hub, a business must be in Alger, Baraga, Delta, Dickinson, Marquette, Menominee, or Schoolcraft County, be defined as a small business, and qualify as disproportionately impacted by COVID-19. Independently owned and operated businesses that have less than 500 employees AND are not dominant in their field of operation are considered small businesses. All seven counties in The Hub’s coverage area are designated as Rural Michigan Counties that qualify as disproportionately impacted by COVID-19. Therefore, all small businesses within them, including start-ups and those recently established, also qualify as disproportionately impacted by COVID-19.

Eligible Applicants

To be eligible to apply for a Direct Grant, a business must:

• Meet SBSH Program eligibility guidelines; AND
• Have participated in one of The Hub’s events or services within the six months before the award

**Nonprofit organizations and businesses in the cannabis or casino gaming industries are not eligible to receive support and services from The Hub.

What can Hub Direct Grant funds be used for?

Hub Direct Grand Funds may be used to:

• • purchase equipment, inventory, software, hardware up to $4,999 per unit; 
  • pay for highly specialized consulting services, or other services Hub cannot provide or directly contract for;  
  • pay certification or licensing fees (for certification or licensure received by 9/30/2026); 
  • Pay for any other HUB-approved cost (that is not an Ineligible Cost) related to supporting the business’ operations or growth needs 

Are there things Hub Direct Grant funds cannot be used for? 

Yes, Hub Direct Grant Funds are not permitted to be used to pay for: 

• general overhead: rent, lease payments, utilities, personnel costs, professional memberships, certifications, and license renewals
• general infrastructure projects 
• building–based construction or renovation 
• eligible costs to be reimbursed or that have been reimbursed by another MSF, MEDC, or federal program 
• projects contrary to efforts to stop the spread of COVID-19 

All Direct Grant Award contracts must be signed by February 1, 2026, and all funds awarded must be spent by September 30, 2026. 
Businesses may only receive one Direct Grant Award from all Small Business Support Hub Program Grant funding sources. 

When and how can I apply for a Hub Direct Grant for my business? 

The first Direct Grant application window is currently open: it extends from September 13, 2024 to October 11, 2024. Eligible businesses, those that have participated in The Hub’s programs or services within the past 6 months, are being emailed notification and application information.

View the Hub’s Direct Grant Guidelines and Factsheet here. 

Click on the GET CONNECTED button to submit your business’ information and your contact information. Upon receipt of your submission, a Hub Small Business Resource Navigator will contact you to get you connected! 

BARAGA COUNTY & TRIBAL COMMUNITIES

Navigator: Robin Chosa
rlchosa@mtu.edu
(906) 370-6480

 

BARAGA COUNTY & TRIBAL COMMUNITY
Office Hours (ET): Tuesday & Thursday 9 am-12 pm & 1-4 pm
Michigan Works
2 South Main St. #A
L’Anse, MI 49946

DELTA COUNTY TRIBAL COMMUNITY
Office Hours (ET): Wednesday 9 am-noon & 1-4 pm
Hannahville Vision Center
N16315 A-1 Rd.
Bark River, MI 49807

MARQUETTE COUNTY TRIBAL COMMUNITY
Office Hours (ET): Monday by appointment only
Sault Tribe Thrive Office
TBD
Harvey, MI

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DICKINSON AND MENOMINEE COUNTIES

Navigator: Jose Laynez
jlaynez@mtu.edu
(906) 370-6563

 

DICKINSON COUNTY
Office Hours (CT): Tuesday 9am-noon & 1-4 pm, Wednesday 9am-noon & 1-4 pm
MI WORKS
127 S. Stephenson Ave Suite 211
Iron Mountain, 49801

MENOMINEE COUNTY
Office Hours (CT):  Monday 9am-noon & 1-4 pm, Thursday 9am-noon & 1-4 pm
MI WORKS
461 1st St.
Menominee, MI 49858

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ALGER, DELTA, & SCHOOLCRAFT COUNTIES

Navigator: Ilana Minor
iminor@mtu.edu
(906) 370-1576

 

ALGER COUNTY
Hours (ET): Thursday 9 am-noon & 1-4 pm
MI WORKS
413 Maple Street, Suite 6. Room 101
Munising, MI 49862

DELTA COUNTY
Hours (ET): Monday 9 am-noon & 1-4 pm, Tuesday 9 am-noon & 1-4 pm
MI WORKS
2950 College Ave.
Escanaba, MI  49829

SCHOOLCRAFT COUNTY
Hours (ET): Wednesdays 9 am-noon & 1-4 pm
MI WORKS
300 Walnut St #264
Manistique, MI 49854

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MARQUETTE COUNTY

Navigator: Liam Goetz
liam@accelerateUP.com
(906) 250-0288

 

MARQUETTE COUNTY
Hours (ET): Monday-Thursday 9 am-noon & Monday, Tuesday, Thursday 1-5 pm
Accelerate UP
102 West Washington Street, Room 224
Marquette, MI 49855

By appointment:
West End Economic Hub
910 US-41 W
Ishpeming, MI

Information accurate as of 12/9/2024

Is my business eligible to use the Hub? 

If you consider yourself a small business, then you are likely eligible to utilize the Hub. The MEDC uses a definition of any business with less than 500 employees which covers 99% of businesses in Michigan. The Hub will work with businesses in any industry and at any stage of its development. Program requirements also include that all businesses must have been impacted by COVID-19; the entire seven county region of the Hub falls within a geographic definition of impacted communities.

How much of the Hub funds are going to administrative support?

Administrative overhead is common in grants and a real cost to any organization implementing a grant-based program. However, due to federal restrictions, no funds from the grant can be used for administrative overhead. Instead, the LSCP will operate the Hub as an essential part of its 2024 – 2026 Strategic Plan focus area for Retaining and Growing Businesses. Over the course of the three years, approximately 14% of the funds will flow directly to five strategic partners in return for expanding access to their programming to support the Hub’s efforts; those funds may end up in operational budgets depending on each organization’s financial processes and strategies.

When will the Hub be operational? 

As of 8/12/2024, the Hub is fully operational. A Hub Program Manager and four Small Business Resource Navigators have been hired to cover all seven counties in the Hub. The Hub Advisory Council meeting occurred in July and will be meeting again in August to finalize the direct grant criteria and application. The Main Street Academy, developed by Northern Michigan University’s College of Business, will be collaborating with the Hub’s Navigators to match interns with Hub participants to receive assistance and support.

How long will the Hub operate? 

Funds from the MEDC are committed for three years so the Hub will operate at least through the end of 2026. Part of our mission is to sustain as much of the Hub as possible following expiration of the funds.

How will the Hub operate with other local economic development and business development organizations?

The Hub is intended to complement, not replace, local economic development organizations. Oftentimes in rural areas, a local EDO is staffed by a single individual who is focused on strategic economic goals and simply doesn’t have enough capacity to support every single business. The Hub will help local EDOs expand their capacity to support local small businesses specifically. Local EDOs will have regular communication with their Hub Navigator and work hand-in-hand to plan local events and customize resources. Several EDO’s and affiliated agencies will supply Small Business Resource Navigators with office space to work out of when in their County.

What is the review process for my application? 

Applicants will be notified whether their application has been selected to receive a reward within 45 days of the application window closing. The Hub reserves the right, at its sole discretion, to reject an application if it:

• Does not meet the program requirements, including scope, eligibility, and allowable grant dollar use.
• Is received after the deadline.
• Is incomplete or missing any of the required forms, narrative, and budget.
• Does not follow the outlined application requirements.

Where can I learn more about the overall Small Business Support Hub program? 

You can learn more directly from the MEDC.

Do businesses need to have been operating before March 2020 in order to receive a direct grant from the Support Hub?
No.
For the purposes of this program, the MEDC is defining disproportionately impacted by COVID-19 a business that meets one or more of the following:

• A business located in CDFI Investment Areas, Qualified Census Tracks, or rural areas of Michigan (map). All 7 Central UP Counties within in The HUB’s coverage area are designated Rural Michigan Counties. Thus, all small businesses within them that otherwise meet the Hubs program criteria, including new businesses, are eligible to participate in The HUB to qualify to apply for it’s Direct Grants.
• A business that meets the definition of SEDI-owned
• A business that can demonstrate a disproportionate negative economic impact as a result of COVID-19

How does the MEDC define a Non-Profit?
A non-profit is defined as an organization that has non-profit tax status such as (but not limited to) a government entity, a 501(C)3 or 501(C)6.

If a capital expense exceeds $4,999 can we pay the difference out of pocket or does the item itself have to cost less than that?
No. Individual capital expenses cannot exceed $4,999. Grantees may not cover the difference.

Are expenses incurred prior to the grant being awarded eligible for reimbursement?
No. Expenses incurred prior to the grant agreement execution are not eligible.

Are businesses who received COVID-19 relief funding through PPP or other federal programs eligible to receive a direct grant through the Small Business Support Hubs funding?
Yes. Eligible businesses who have received other COVID-19 related small business relief funding can still receive additional grant support through the Small Business Support Hubs program.

Where can I find the minority-owned definition?
Definitions for Disproportionately Impacted by COVID-19, Minority-owned business, Socially and Economically Disadvantaged Individual (SEDI) can be found in the Small Business Support Hubs Program Guidelines, on the Small Business Support Hubs website.

Can a Small Business Support Hub use funding to support a small business that is in the tech industry?
Yes. Small businesses, regardless of industry*, are eligible to receive support through the Hub as long as they meet the MEDC’s definition of having been disproportionately impacted by COVID-19.
*Nonprofit organizations and businesses in the cannabis or casino gaming industries are not eligible to receive support and services from The Hub.

Many of our businesses received previous Covid relief grants, including forgiven PPP loans. Would those businesses be eligible for these direct business grants?
Yes. A business previously receiving support for other federal, state, or local COVID-19 programs has no impact on eligibility for this program. With that said, a Hub may identify their own eligibility requirements based on their local or regional priorities and program goals.

How will tribal entities confirm their eligibility?
All applicants will self-certify that they meet eligibility requirements.

Can the small business be in the process of starting their small business to receive direct grant support?
Small businesses receiving direct grants from Hubs are considered eligible beneficiaries are not required to have an EIN/TIN or be registered in SAM.gov in order to receive the grant.
Note: Direct grants dollars are taxable income. Hubs are required to provide any necessary financial documentation to the business for the purposes of tax filings (example – issuing a 1099).

How will direct grants be allocated to small businesses?
To be eligible to receive direct grants from the Small Business Support Hub, a small business will have to have completed an eligible program or service provided by the Hub within the previous six months in order to receive a grant. Grants must support small business operations or growth needs as identified by the Hub. Grants will be sub-granted by the Support Hub to the small business owner directly.
Finally – The Entrepreneurial Hub must adhere to the ARP imposed obligated and expenditure deadlines. Direct grant funds awarded to small businesses through the Hubs must be identified and under contract by 2/01/2026.

Is there a match requirement for this program?
No

The businesses can apply for Direct Grant funds for new furniture, tech, etc., but not for the construction cost to renovate a space? (7/12/23)
That is correct.

In the example of creating a kitchen incubator, would general overhead such as rent/leasing of space and/or utilities be an eligible expense?
For eligible businesses, general overhead such as rent, lease payments, or utilities are not an eligible use of direct grants.

Does the capital expense limit of $4,999 apply to direct grants to small businesses, as well as The Hub? For example, can a small business who receives a $10,000 direct grant from an eligible support hub use it to purchase a $20,000 piece of equipment?
The capital expense limit of $4,999 applies to direct grants to small businesses as well as to operational and programming expenses of the Hubs.

Does the business have to be incorporated when Covid started?
No. To qualify for programs, services or direct grants, a business must qualify as disproportionately impacted by COVID19, this is defined in the program guidelines.

Are entrepreneurs located outside of The HUB’s 7-County coverage area, who wish to establish a business within The HUB’s coverage area, eligible to participate in The HUB and apply for The HUB’s Direct Grants?
No. Businesses and entrepreneurs located outside of The HUB’s coverage area are not eligible to participate in The HUB’s Programs, Services, or Direct Grants to establish a business within the HUB’s coverage area. They are encouraged to connect with the Economic Development Agencies and (EDC, DDA, Chamber) and municipalities (County and City managers…) in the Counties they are considering for their start-up to obtain infrastructure and strategic planning information for the locale as well as information on any local or state grant funding or tax breaks available to attract new businesses.

If a person operates multiple LLC’s, can each of their LLC’s apply for the grant?
Yes. Direct Grants may be applied for by each of the LLC’s owned by an individual. However, the SBSH Program’s purpose is to extend support, services, and resources to the most businesses and owners possible in underserved rural areas and the SBSH’s Direct Grant funds are limited. Therefore, applicants whose business(es) haven’t received an award may be prioritized over Awardees that apply for a Direct Grant for another of their businesses.

Questions related to the Hub may be directed to the Hub’s Program Manager or any of the Hub’ Small Business Resource Navigators.  You can contact the Hub here.