Governor Whitmer's Initiative Grabs Federal Support for Michigan's Small Business Growth

Photo byOffice of the Michigan Governor

Lansing, Mich. - Governor Gretchen Whitmer announced that Michigan has secured continued support from the U.S. Small Business Administration (SBA) for 28 counties and census tracts across the state through the HUBZone program. This initiative is designed to stimulate small business growth in historically underutilized areas by allocating 3% of federal contract dollars to HUBZone businesses annually. The renewed support aims to empower local business owners, stimulate economic growth, and create well-paying jobs across Michigan.

A Boost for Michigan's Small Businesses

Governor Whitmer emphasized the critical role of small businesses in Michigan's economy, highlighting the state's commitment to supporting these enterprises. "Small businesses are the backbone of Michigan’s economy and critical to building a brighter future for our residents," she stated. The HUBZone program's continued support will facilitate connections between small business owners and federal contract opportunities, helping to create high-skilled, well-paying jobs within the state.

Lt. Governor Garlin Gilchrist II echoed this sentiment, expressing confidence in Michigan's entrepreneurial spirit. He noted, "Michigan is a state of dreamers and doers who work tirelessly to chase their next innovative idea and change the world. Securing Small Business Administration HUBZone support will connect entrepreneurs and small business owners with the resources they need to thrive, growing our economy and creating jobs in communities across Michigan."

Economic Impact and Future Prospects

The HUBZone program's influence extends beyond direct business growth, fostering community development and economic revitalization. Geri Aglipay, SBA Region V - Regional Administrator, highlighted the broader impact of the program: "These Governor-identified HUBZones will bring expanded opportunities in 28 census Michigan tracts for small businesses to be certified for federal contracting. This helps them create good-paying jobs and bring dollars into their communities that will benefit historically underutilized business areas and economically challenged places."

Michigan's HUBZone businesses, also recognized as Geographically Disadvantaged Business Enterprises (GDBEs), have already seen significant benefits. In the fiscal year 2021, 59 Michigan HUBZone businesses were awarded contracts totaling $219,272,900. This success reflects the potential for these businesses to attract private investment and create jobs. Over the last five years, Michigan's Economic Development Corporation (MEDC) programs have supported projects expected to create over 1,800 new jobs and more than $3.5 billion in planned private investment in various industries, including automotive manufacturing and services.

Looking Ahead: A Strategic Vision

Quentin L. Messer, Jr, CEO of the MEDC, praised the SBA's continued support, stating, "We are grateful for the SBA’s community-transforming HUBZone program, which will impact small businesses and the communities in which they thrive across the state. As Team Michigan executes its 'Make It in Michigan' economic development strategy, this federal support creates opportunities for Michigan’s small businesses to generate greater community impact."

The new designations will be updated on the HUBZone map within the week, providing a valuable resource for small businesses seeking to leverage federal contracting opportunities.

Governor Whitmer's administration remains committed to supporting small businesses, as evidenced by recent policy initiatives. These include a bipartisan tax cut, increased tax flexibility for small businesses, and the establishment of a goal to ensure that 20% of state department and agency expenditures go to GDBEs beginning in FY2023-24. Additionally, a $75 million investment was made to support small business smart zones, business accelerators, and entrepreneurial activities across Michigan.

As Michigan continues to climb national rankings for business competitiveness and economic growth, the HUBZone program's sustained support will play a crucial role in fostering a vibrant, inclusive economic landscape.