Help is on the way for Michigan small businesses still feeling the ill effects of the COVID-19 pandemic.

The Michigan Strategic Fund on Tuesday approved a measure to establish Small Business Support Hubs for state entrepreneurs. About $75 million in America Rescue Plan Act funds will be allocated to the formation of the hubs.

Through the hubs, small businesses will gain increased access to financial capital, receive targeted outreach and culturally-competent small business support for underserved and diverse communities, see more equity and inclusion in program design, according to a briefing memo from the Michigan Economic Development Corp. There will also be an increased priority in investments into the small business ecosystem to build organizational capacity, enhance and diversify operations, strengthen programming and better meet distinct regional needs.

Awards will be as much as $6 million.

The objectives of the Small Business Support Hubs include:

• Support small businesses that are disproportionately impacted by the pandemic.
• Cultivate a more inclusive, accessible and integrated (tech and small business) entrepreneurial

ecosystem.

• Increase the number of businesses served through new and scaled programming, technical

assistance and support services.

• Increase awareness of Michigan’s small business ecosystem; assist small businesses in navigating

to and through local, regional and statewide business support resources.

• Expand the geographic reach of network partners into underserved communities and rural areas.
• Raise the national profile of Michigan’s small business ecosystem.

The concept for the Small Business Support Hubs was conceived in 2021 as part of a series of pandemic relief efforts under Gov. Gretchen Whitmer’s MI New Economy Plan.

The hubs will build on the MEDC’s 20-member, tech-focused SmartZone network of consultants, coaches, nonprofits, universities, lenders, community and economic development partners, the memo stated. The SmartZones offer localized, low-cost co-working spaces, training and mentorship to entrepreneurs, researchers and startups.