Tag: MEDC

Five Stories that Matter in Michigan This Week – August 26, 2022

  1. Michigan Sees Unemployment Decrease as Jobs Increase

According to recent data released by the Michigan Department of Technology, Management, and Budget, the unemployment rate in the state dropped from 6.2% to 4.2% over a twelve-month period. Michigan also saw a bump in jobs last month, with 3,000 in July.

Why it Matters: Officials point to the increase in job growth and lower unemployment rates as a reflection of the hard work that the government, people, and businesses have put into the economy to shift to a more positive outlook.

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  1. Michigan to Deploy $72M in Federally Funded Small Business Loans and Investments

$72 million of funding Michigan received from the federal Small Business Credit Initiative 2.0 is being deployed for loans to small businesses through Michigan Economic Development Corporation capital and lending programs. The MEDC will also invest  up to $75 million in early-stage, technology-based businesses in Michigan through the Small Business Venture Capital Program.

Why it Matters: Michigan’s venture capital and startup ecosystem continues to grow. The amount of venture capital invested in Michigan reached an all-time high in 2021. According to the Michigan Venture Capital Association’s 2022 Impact Report, a record $1.38 billion into 155 companies last year through 161 deals.

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  1. MDOT Seeks to Install Automated Cameras in Work Zones

Michigan HB 5750 would allow the Michigan Department of Transportation (MDOT) to install automated cameras in work zones to capture speeders. While the bill sits on the House floor, the road construction industry is getting behind the bill.

Why it Matters: If this bill passes, drivers will need to be aware of the resulting penalties for exceeding the posted speed by 10 mph or greater, which would range from a written warning to a $300 fine.

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  1. Gas Prices Continue to Decrease Since Record June 2022 Highs

The American Automobile Association (AAA) reports that the average Michigander is paying just under $4 for a gallon of gas, down from the record high average of $5.22 in June.

Why it Matters:  While gas prices continue to decrease, Michiganders are still paying more per gallon when compared to 2021. Citizens and officials alike will look to continue seeing the downward trend. Spending less at the pump can increase spending in other areas of the economy.

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  1. U of M Study Finds that Wind and Solar Industries Could Fully Replace Jobs Lost at U.S. Coal-Fired Power Plants

A recent University of Michigan study found that the wind and solar industries could fully replace the number of lost jobs at U.S. coal-fired power plants that are expected to close to meet emission-reduction targets.

Why it Matters: The recently enacted Inflation Reduction Act includes substantial funding for wind and solar energy tax incentives. The bill is intended to spur growth and investment in clean energy projects across the country. Michigan has recently seen growth in jobs in the energy sector. In fact, the state ranked first in the nation for energy job growth in a recent U.S. Department of Energy report. Michigan added more than 35,000 energy-sector jobs from 2020 to 2021.

Related Practice Groups and Professionals

Business & Tax| Ed Castellani

Labor & Employment | Aaron Davis

Energy, Utilities & Telecommunication | Michael Ashton

Insurance Defense | Emily Vanderlaan

Five Stories that Matter in Michigan This Week – August 5, 2022

  1. August 2 Michigan Primary Election Results

The outcome of the August 2 Republican primary for Governor saw candidate Tudor Dixon prevail. In the November general election, she will face incumbent Governor Gretchen Whitmer who ran unopposed. In the newly drawn 3rd congressional district, Republican John Gibbs defeated incumbent Peter Meijer.

Why it Matters: As November and the general election gets closer, stay tuned for more insights as Fraser Trebilcock’s election law team will be closely monitoring the action.

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  1. MEDC to Make $237 Million Available to Help Michigan Small Businesses

The Michigan Economic Development Corporation announced that Michigan has been approved for up to $237 million in State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of Treasury.

Why it Matters: Small businesses impacted by the COVID-19 pandemic can apply for funds through private lenders and the MEDC would back the loans through the SSBCI program. Learn more on the topic here.

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  1. Ballot Initiative Aims to Increase Minimum Wage Targets 2024 Ballot

The Raise the Wage MI ballot initiative proposal aims to raise Michigan’s hourly minimum wage to $15 over the course of five years. The organizers behind the ballot initiative are reported to have secured more than 610,000 signatures and delivered them to Michigan officials last week.

Why it Matters: The issuance of a stay until February 19, 2023 follows the ruling by the Michigan Court of Claims stating that the state legislature’s adoption and alteration of a 2018 ballot initiative that would have raised minimum wage to $12 by 2022 was unconstitutional. This ruling has been appealed, but even if it gets overturned, Michigan may still see an increase to minimum wage if the Raise the Wage MI initiative is passed.

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  1. New Law Allows Non-Profit Corporation to be a Member of Limited Liability Company

Senate Bill 926 was recently signed into law by Governor Whitmer, which changes the definition of a person in the limited liability company act, allowing nonprofit corporations to be members of limited liability companies (“LLC”).

Why it Matters: Michigan now joins other states that allow nonprofits to create LLCs that do not involve any financial gain or profit to perform certain functions while still maintaining their nonprofit status.

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  1. Michigan Senate Judiciary Committee Approves Texting While Driving Bills

The Michigan Senate Judiciary Committee approved a package of bills expanding the scope of Michigan’s texting while driving laws, which would make requirements more stringent and penalties for violations more costly. The bills explicitly address social media use and live streaming.

Why it Matters: Distracted driving is dangerous. In 2020, according to the National Highway Traffic Safety Association, 3,142 people were killed in motor vehicle crashes involving distracted drivers. Distracted driving is also costly for drivers, as those who violate distracted driving laws tend to see their insurance rates shoot up.

Related Practice Groups and Professionals

Election Law | Garett Koger

Business & Tax | Robert D. Burgee

Business & Tax | Ed Castellani

Insurance Defense | Emily Vanderlaan

MEDC to Make $237 Million Available to Help Michigan Small Businesses

The Michigan Economic Development Corporation (MEDC), joined by Governor Whitmer, announced that the U.S. Department of Treasury has approved up to $237 million in State Small Business Credit Initiative (SSBCI) funding for businesses in the State of Michigan. The SSBCI is designed to promote entrepreneurship and increase access to capital that would otherwise not be available in the market through conventional terms.

Michigan is one of only five states that will receive funding in the SSBCI’s first round, which is expected within the next two months. Michigan’s share of the first round will be roughly $72 million. Those interested are encouraged to visit MEDC’s website here for more information. The funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding.

In January, the Michigan Strategic Fund Board adopted the Michigan Business Growth Fund 2.0 to provide programs and guidelines for the access to that funding for small businesses through loans and equity investments. These programs include new requirements to enhance support and ensure equity in access to capital for small businesses owned by socially and economically disadvantaged individuals (SEDI), and businesses who have less than 10 employees.

Fraser Trebilcock attorneys specialize in assisting small to medium sized businesses throughout every stage of the business life cycle. If you have any questions, please contact your Fraser Trebilcock attorney.

Robert D. Burgee is an attorney at Fraser Trebilcock with over a decade of experience counseling clients in business transactions, civil matters, regulatory compliance, and employee matters. Robert also has a background in employee benefits, having been a licensed agent since 2014. You can reach him at 517.377.0848 or at bburgee@fraserlawfirm.com.

Act Fast For Emergency Small Business Relief From the MEDC

Time is of the essence for Michigan small businesses affected by COVID-19 to apply for loans and grants being made available through the Michigan Economic Development Corporation (MEDC).

As part of the state’s economic response to the COVID-19 crisis, the MEDC made available $20 million in small business loans and grants through its State of Michigan Small Business Relief Program. The Program is equally divided between a $10 million grant program and a $10 million loan facility.

For the grant program, the MEDC has partnered with Local Economic Development Organizations (LEDO) in 15 regions of the state to administer the grants. In the greater Lansing area the LEDO is the Lansing Economic Area Partnership (LEAP).

LEAP has been allocated $600,000 of grant funds and will be making sixty $10,000 grants to Greater Lansing’s small businesses affected by the coronavirus outbreak. Eligible businesses are those with fewer than 50 employees. Grant application forms and processes for selection and administration can be found on LEAP’s website.

Time is of the essence as the grant application period ends at 11:59 p.m. on Tuesday, March 31, 2020. Awardees are expected to be notified on April 6 with the money delivered on April 8.

The same application process for the grant program is being used for the $10 million small business loan program. The loan applications and requests will be referred by the LEDO – LEAP in the greater Lansing area to the MEDC, which will take loan requests to lender partners or to the Michigan Strategic Fund.

Interested small businesses are urged to visit the Lansing Economic Area Partnership (LEAP) website at http://www.purelansing.com/businessrelief for more information and applications.

We have created a response team to the rapidly changing COVID-19 situation and the law and guidance that follows, so we will continue to post any new developments. You can view our COVID-19 Response Page and additional resources by following the link here. In the meantime, if you have any questions, please contact your Fraser Trebilcock attorney.