LANSING, Mich. (Nov. 4, 2024) — Last week, Sen. Sarah Anthony (D-Lansing) introduced Senate Bill 1053 to establish a Road Construction Business Loss Reimbursement Program. While infrastructure enhancements benefit communities and businesses in the long run, the bill seeks to provide financial relief to small businesses that experience temporary disruptions due to construction.
Under the program, eligible businesses could apply for grants of up to $15,000 per year to offset revenue lost during construction projects. To ensure aid goes to those most impacted, applicants would need to demonstrate a significant revenue decline based on a comparison to their average revenue from the prior three tax years. This targeted approach allows the program to reach the businesses facing the greatest financial strain.
“Small businesses do so much to support our communities, and they deserve our support when they’re faced with circumstances outside their control,” said Sen. Anthony, Chairwoman of the Senate Appropriations Committee. “While necessary infrastructure upgrades continue to be made in our neighborhoods and around the state, this legislation will help alleviate the financial impact on our local shops, restaurants, and service providers.”
Currently, the Michigan Dept. of Transportation (MDOT) has the authority to fine contractors who miss project deadlines, but these penalties are directed to MDOT’s general budget. Senate Bill 1053 proposes redirecting these funds to support businesses impacted by construction delays, putting more resources back into local economies.
Local businesses in the Kalamazoo area are experiencing challenges similar to those in Lansing, struggling to stay afloat amid the Michigan Avenue Rehabilitation Project and construction along MLK Blvd., with the prolonged projects impacting customer access and revenue. As a cosponsor of this bill, Sen. Sean McCann (D-Kalamazoo), Majority Vice Chair of the Senate Appropriations Committee, is working alongside Sen. Anthony to provide crucial support to businesses while making much-needed improvements to roads and infrastructure.
“Many small businesses in my district have been impacted by multiple overlapping construction projects, detours and reduced traffic to their business,” Sen. McCann. “I am proud to co-sponsor Sen. Anthony’s legislation, Senate Bill 1053, that would provide grants to small businesses affected by construction. As Michigan and local governments aggressively rebuild our aging infrastructure, this proposed legislation will help ensure that we also address the needs of our small businesses and people’s livelihoods during these projects.”
Senate Bill 1053, which reflects Senate Democrats’ broader commitment to empowering Michigan’s business owners and promoting robust local economies, now moves to the Senate Appropriations Committee for further consideration.
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