# Small Business Support Hub (SBSH) – Sub-Grantee Project Summary ## Overview The **Small Business Support Hub (SBSH)** program is a statewide initiative designed to strengthen Michigan’s entrepreneurial ecosystem by supporting small businesses through coordinated regional hubs. The program is funded through the **American Rescue Plan Act (ARPA)** and administered through the **Michigan Economic Development Corporation (MEDC)** with regional management provided by organizations such as the **Lansing Economic Area Partnership (LEAP)**. The program invests in organizations that provide entrepreneurial services, technical assistance, training, coaching, and direct support to small businesses that were disproportionately impacted by the COVID-19 pandemic. Across Michigan, **27 Small Business Support Hubs** were selected to participate and are collectively expected to support **approximately 20,000 businesses over a three-year period**. [oai_citation:0‡SBSH-Ecosystem Guide-240709.pdf](file-service://file-G2wHQapfor5E8ZSzKPFmEy) ## Purpose The SBSH initiative aims to: - Expand access to entrepreneurial support services - Strengthen regional business support networks - Increase support for underserved entrepreneurs - Improve coordination across Michigan’s SmartZones and ecosystem partners - Accelerate small business formation, stability, and growth The program prioritizes **inclusive economic development**, ensuring that entrepreneurs from historically underserved communities receive access to technical assistance, capital pathways, and mentorship. [oai_citation:1‡SBSH-Ecosystem Guide-240709.pdf](file-service://file-G2wHQapfor5E8ZSzKPFmEy) ## Role of Sub-Grantees Sub-grantees are local ecosystem organizations responsible for delivering programming and services directly to entrepreneurs. Their responsibilities typically include: - Providing **technical assistance and business coaching** - Delivering **training programs, accelerators, or incubators** - Facilitating **networking and mentorship opportunities** - Supporting businesses in accessing **capital and funding** - Tracking and reporting outcomes for businesses served Sub-grantees must also ensure that **at least 20% of businesses served are minority-owned businesses**. [oai_citation:2‡2. How-To Guide for Sub-Grantees - Final Template (2.15.24) (1).pdf](file-service://file-4Q4srBzzMEb1jCa1egZ1Wj) ## Funding Structure Grant funds are distributed through milestone-based disbursements. Typical funding structure: 1. **First Milestone** - 50% of funding released after contract execution and initial reporting. 2. **Second Milestone** - 25% released after demonstrating that at least 80% of the first disbursement was spent on eligible activities. 3. **Third Milestone** - Final 25% released after demonstrating full use of earlier funds and appropriate reporting. [oai_citation:3‡2. How-To Guide for Sub-Grantees - Final Template (2.15.24) (1).pdf](file-service://file-4Q4srBzzMEb1jCa1egZ1Wj) Funds must be used for **eligible program costs aligned with the approved budget and scope of work**. ## Program Timeline The SBSH program operates over multiple years with regular reporting requirements. ### Key Dates **2024** - March 1 – Sub-grantee contracts executed and services begin - March 15 – First funding milestone invoice - Quarterly federal reports due **2025** - Quarterly federal reports continue - September – Second funding milestone **2026** - January – Third funding milestone - September 30 – Program end date All reporting deadlines must be met to maintain funding eligibility. [oai_citation:4‡2. How-To Guide for Sub-Grantees - Final Template (2.15.24) (1).pdf](file-service://file-4Q4srBzzMEb1jCa1egZ1Wj) ## Reporting Requirements Sub-grantees must complete several types of reports: ### Federal Quarterly Reports These include: - Project description and activities - Obligations and expenditures - Project status - Identifying and demographic information - Performance period information ### Federal Annual Reports Annual reporting includes: - Executive summary of activities and outcomes - Community engagement strategies - Project descriptions and timelines - Performance indicators and impact measures ### LEAP Small Business Support Hub Report Regional reporting may track metrics such as: - Businesses served - New businesses formed - Jobs created - Coaching and training participation - Capital accessed - Revenue generated by supported businesses - Demographics of businesses served - Businesses located in disadvantaged areas [oai_citation:5‡2. How-To Guide for Sub-Grantees - Final Template (2.15.24) (1).pdf](file-service://file-4Q4srBzzMEb1jCa1egZ1Wj) ## Compliance Requirements Sub-grantees must comply with federal grant management rules, including: - **SAM.gov registration and UEI number** - Positive timekeeping for staff working on the program - Documentation of eligible expenses - Compliance with the **Single Audit Act** if federal spending exceeds $750,000 - Inclusion of termination clauses in contracts exceeding $10,000 Failure to meet reporting or compliance standards can result in loss of funding. [oai_citation:6‡2. How-To Guide for Sub-Grantees - Final Template (2.15.24) (1).pdf](file-service://file-4Q4srBzzMEb1jCa1egZ1Wj) ## Ecosystem Context The SBSH network works alongside Michigan’s **SmartZone entrepreneurial ecosystem**, which has more than 20 years of history supporting technology startups, small businesses, and innovation-driven enterprises. The goal is to create a **coordinated statewide network of entrepreneurial hubs** that can: - Refer businesses to specialized resources - Expand services into underserved communities - Strengthen collaboration between ecosystem partners - Increase Michigan’s national profile as an entrepreneurial state [oai_citation:7‡SBSH-Ecosystem Guide-240709.pdf](file-service://file-G2wHQapfor5E8ZSzKPFmEy) ## Outcomes and Impact Expected outcomes from the program include: - Increased small business formation - Job creation - Increased access to capital - Expanded support for underserved entrepreneurs - Stronger regional entrepreneurial ecosystems The program ultimately seeks to build **a more inclusive and resilient small business economy across Michigan**.