Great Lakes Wire

As Michigan lawmakers begin their annual budget discussions, the Small Business Association of Michigan (SBAM) is outlining its priorities for small business support in the state. The organization says it is closely monitoring how taxpayer dollars are allocated by the House, Senate, and governor.

SBAM has stated its continued involvement in key areas affecting small businesses, including taxes, regulations, health care, education, and childcare. In a recent statement, SBAM provided details on several programs and funding requests aimed at strengthening Michigan’s small business environment.

The SBAM Foundation was highlighted as one of 27 “Support Hubs” recognized by the Michigan Economic Development Corporation to help small businesses affected by COVID-19. According to SBAM, its foundation is unique in operating statewide and providing training, education, and support services to qualified small businesses. While Governor Whitmer has recommended $10 million for these efforts, SBAM believes that “an investment of $25 million is more appropriate.”

Another priority for SBAM is the new Center for Social Enterprise Development. The legislature recently approved $1 million in one-time funding for this partnership between SBAM and Incompass Michigan. The center aims to support social enterprises—businesses that address social or environmental goals while maintaining sustainable operations. “Additional funding for this program will expand the Center’s reach and services to offer these businesses,” according to SBAM.

Tourism also remains an important sector for many local businesses. The association expressed strong support for continued funding of the "Pure Michigan" campaign, which promotes tourism across the state. They recommend a total allocation of $40 million from a mix of general fund dollars as well as private/local and federal sources.

In workforce development initiatives, SBAM backs expanded funding for both the Michigan Reconnect program—which provides scholarships to adults seeking associate degrees or certificates—and the Going PRO Talent Fund. For Reconnect scholarships, they recommend $52 million with added accountability measures tied to performance outcomes. Regarding Going PRO—a fund that helps employers train current and new employees—SBAM supports an increase to $54.7 million.

Education reform is also part of SBAM’s agenda due to concerns about talent shortages reported by employers across Michigan. They point out lagging test scores and achievement gaps among students compared with other states. Citing work by Launch Michigan on an Education Guarantee playbook involving multiple stakeholders, SBAM supports investing $1 million “to define future-ready skills and competencies” needed in tomorrow’s workforce.

Childcare affordability continues to be a significant concern raised by both employers and employees statewide. To address this issue, SBAM advocates expanding the Tri-Share program—which divides childcare costs among employers, employees, and the state—and increasing financial support for afterschool programs that provide families with additional learning opportunities outside regular classroom hours.

Finally, regarding community-based childcare providers who have faced potential restrictions or compensation mandates in previous budgets: “These proposals will not only harm providers but will further exacerbate childcare shortages as they continue to represent a critical issue for Michigan’s families.” Policymakers are urged by SBAM to maintain budgetary support for private providers moving forward.

For more information about ongoing news related to these issues or resources available through SBAM: Click here for more News & Resources.