LANSING, Mich., Sept. 18, 2020 — State Rep. Rachel Hood (D-Grand Rapids) and State Rep. John Hoadley (D-Kalamazoo) introduced a pair of bills that would set the stage to provide businesses access to short term loan agreements with local and state governments to bridge the payment of summer 2020 property taxes. The solution defines eligible businesses as those that have been closed for their primary purposes as of August 1, 2020.
“Over the last six months, government and business leaders across industries have worked to save businesses impacted by the COVID-19 pandemic,” Hood said. “Some industries have been able to get back to work, while others have had to remain closed to protect public health. Those businesses that remain closed as of August 1 have been unable to generate revenue to pay summer property taxes. Lost property tax revenue then negatively impacts the bottom line of local governments that rely on that revenue to fund operations. These qualifying businesses contribute greatly to our communities over their lifetime; for their benefit and local government’s benefit, we need to build a financial bridge that allows businesses to open safely and get their revenue back on track.”
“Small businesses drive our economy, employ our neighbors and play an active role in making our communities better places to live,” said Hoadley. “This is our chance to help keep them on their feet during this crisis without jeopardizing the local programs and services that Michiganders rely on each day.”
“Revenue sources are unclear at this time as we negotiate the budget, track dynamic revenue projections, and wait for Congress to deliver a second stimulus package to states across the nation. But Rep. Hoadley and I believe we need to build this program in the hope that resources will be identified in the coming weeks,” stated Rep. Hood.
The loans would be limited to a two-year repayment period, and businesses can qualify for no interest, so long as payment obligations per their loan agreement are met.