Less than a week into her new administration, Michigan Gov. Gretchen Whitmer may have helped set the stage for new business growth in Michigan’s Great Southwest thanks to one of her recent flurry of Executive Directives.
Cornerstone Alliance President Rob Cleveland says that his team is “grateful” for her Executive Director 2019-08, signed back on Friday of last week, which would help expand opportunities for businesses in Michigan’s Opportunity Zones, or in communities that have been cut off from capital and have experienced a lack of business growth — both situations that could match up with and impact several local communities in the region.
Cornerstone’s Cleveland says, “We are grateful for the directive given by the Governor and optimistic that this is a sign of the future priorities of the Whitmer Administration.” He adds, “Every economic development organization looks for additional tools that will benefit its business and residents, and this directive is a tool that will accomplish that goal.”
Under the executive directive, the Department of Technology, Management, and Budget (DTMB) must work with other state departments, agencies, and organizations representing small businesses to identify and reduce barriers for geographically-disadvantaged businesses by increasing purchases from and contracts with them.
In signing the directive, the Governor said, “Too many Michigan businesses are falling behind because they’re not getting the support they need to thrive in their communities,” and added, “If we want to call Michigan a successful state, we’ve got to expand opportunities for business owners in our opportunity zones. I’m confident that the cabinet I put together will partner with Michigan business owners and ensure they have the resources they need to create more good-paying jobs. This executive directive will take a much-needed step toward building vibrant communities here in Michigan.”
Cleveland says, “Cornerstone Alliance has worked with entrepreneurs to start 38 new businesses in the last two years alone. Many of these small businesses can benefit from an initiative encouraging an increase in state purchases and contracts from disadvantaged areas.”
Lt. Gov. Garlin Gilchrist says, “Entrepreneurs in Michigan’s opportunity zones deserve partners in state government who will work to expand opportunities for them,” and notes, “Whether they’re in Detroit, Flint, or Houghton, Governor Whitmer, our cabinet leaders and I are ready to get to work to help disadvantaged businesses thrive. We’re all better off when our local businesses have the tools they need to be successful.”
Cornerstone’s Cleveland says his Small Business Services team, “Will collaborate our Liaisons at the State of Michigan to understand the new policies and communicate them with our small business clients in a way that will allow them to maximize the opportunity available to them.”
Under the executive directive, DTMB must adopt policies to increase purchases from and contracts with geographically-disadvantaged businesses for supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and all other items needed by state departments or agencies, including contracts for the construction, alteration, repair, or demolition of a facility.
Geographically-disadvantaged business enterprises are defined in the executive directive as one or more of the following:
- Certified as a HUBZone Small Business Concern by the United States Small Business Administration.
- Located within a Qualified Opportunity Zone within Michigan.
- More than half of the employees have a principal residence within a Qualified Opportunity Zone.
HUBZone and Opportunity Zone designations have previously been identified in some areas in the region, and that leaves the door open for assistance by Cornerstone’s Small Business Services Team to facilitate access to the opportunities described in the Governor’s Executive Directive.
