HB 6242 Summary

• Creates the Michigan Small Business Property Tax Loan Program through the Michigan Strategic Fund to provide loans to qualified businesses for unpaid 2020 summer property taxes.

• Eligible businesses must have been closed on August 1, 2020 due to a gubernatorial executive order, earned less than 5% of normal monthly revenue from April-July 2020, and have unpaid 2020 summer property taxes.

• Loans cannot exceed $1,000,000, have a maximum 24-month repayment term, with 0.00% interest for the first 12 months if all board conditions are met; interest becomes prime rate thereafter if conditions are not met.

• Requires the fund to publish a detailed application and approval process on its website and post information about each loan recipient, including business name, location, and loan amount.

• Loan proceeds must be used solely to pay 2020 summer property taxes and businesses must have a written agreement with the local tax collecting unit to use loan funds for this purpose.