Fremont Area Community Foundation wants to help preserve the existing businesses in our community and give them the tools to not only survive but to thrive as our state carefully reopens and businesses once again generate income.

That’s why the Community Foundation created the Small Business Recovery Loan Program to provide support to small businesses in the wake of the COVID-19 pandemic. The Community Foundation will partner with Michigan State University Federal Credit Union (MSUFCU) to offer low-interest loans with favorable terms.

WHO
Self-employed individuals and small businesses (both for-profit and nonprofit) with fewer than 50 employees

WHAT
Loans from $5,000 to $50,000 are available for Newaygo County businesses with fewer than 50 full-time employees. The terms of the loans are favorable with a low interest rate and up to a five-year term. The first principal and interest payments may not be due until 90 days after closing, depending on the needs of the business. Both nonprofit and for-profit entities are eligible to apply, including service, retail, agriculture, commercial, and industrial businesses.

WHERE
Businesses must be located in Newaygo County to apply

HOW
The Community Foundation is partnering with MSU Federal Credit Union, a Michigan-based organization with a shared commitment to our community. All loan documentation will come from MSUFCU.

Request assistance

If you or your business are interested in applying for a loan from the Small Business Recovery Loan Program, please start by reaching out to Dan Wheat or Don Farmer at loan@facommunityfoundation.org or the additional contact information below.

Dan Wheat, FACF community investment officer
dwheat@facommunityfoundation.org
231.766.1210

Don Farmer, independent consultant retained by FACF
farmer.d.w.@comcast.net
231.928.9155

An interview with Carla Roberts

Fremont Area Community Foundation is perhaps most well-known for its grantmaking programs and supporting local nonprofit organizations. Supporting economic development, small business growth, and entrepreneurship has also been a longstanding focus for the organization but often looks different from traditional grantmaking due to a variety of restrictions that all community foundations must navigate.

With all sectors feeling the impact of COVID-19, Carla Roberts, president and CEO, offered some insight into the Community Foundation’s pandemic response and its continuing commitment to local businesses.

How does supporting local businesses fit within the mission of the Community Foundation?

We believe small businesses are the backbone of our local economy. We love our business community, buy local whenever we can, and we encourage our grantees to do the same. This support for small business and entrepreneurs goes back to our earliest days. Several people have told us over the years that they got their start because Bessie Slautterback, the organization’s first executive, gave them a $5,000 loan to start a business.

Of course, we live in different times now, with significant IRS restrictions on how a community foundation can engage with local businesses. We can only award grants to organizations with a charitable status, such as 501c3 nonprofit organizations. That is why we work through intermediaries—such as Northern Initiatives and The Right Place—that have a charitable status and mission to support local business. The Right Place is a service organization and vital partner to support manufacturing, agricultural businesses, tourism, and entrepreneurship in Newaygo County. Northern Initiatives is a community development financial institution (CDFI) with the capability to provide financial services to businesses that do not qualify for conventional loans. In 2015, we established a $250,000 loan pool with Northern Initiatives to ensure that local businesses have the working capital to build and sustain their businesses.

The COVID-19 crisis has obviously had a large impact on our entire region, including local businesses. How did the Community Foundation initially respond to the need and what were the considerations for supporting the business community?

When the crisis hit, we were inundated by the needs from all sectors. We had to quickly deploy our staff in new ways, setting most up to work remotely. Within one week we had created the Community Response Fund and a new quick-response grant application and process to deploy grants from the fund. Of necessity, our first priority was to distribute emergency relief funds for food, shelter, and basic needs as demand quickly escalated alongside job losses.

At the same time, we knew small businesses and entrepreneurs were hurting and began to explore possibilities for supporting them in new ways. We encouraged nonprofits and businesses to take advantage of state and federal programs and we set up a technical assistance team of local experts to provide guidance to navigate those resources. The team included Dan Wheat to work with nonprofits,  Don Farmer to work with businesses of 50 employees or fewer, and Julie Burrell to work with larger businesses. Those resources are still in place for anyone who needs assistance. More information can be found at bit.ly/FACF-business.

We also began to develop a strategy to help small businesses by leveraging Community Foundation assets to support low-interest loans. It took some time to find a partner—as many local banking partners are inundated with processing federal programs—but we are very close to announcing a program to assist local businesses as we enter our county’s intermediate recovery phase.

Why wasn’t the Community Foundation able to award immediate needs grants or use other parts of its endowment to directly support small businesses?

The primary reason is that it is difficult to establish a “charitable class” which is required by the IRS. But even without those restrictions, we would not have had the available dollars in our grantmaking budget. While the Community Foundation and its affiliates award nearly $9 million in grants each year, our trustees only direct about $5 million of that amount. The other grant funds are designated for specific areas or are otherwise restricted in their use. We estimated that the need in the small business community would likely reach $2-3 million. Since we had already deferred significant resources to immediate basic needs such as food assistance, there were simply not sufficient grant funds to address the emerging needs anticipated during the recovery period for both the nonprofit and for-profit sectors.

Making grants to small businesses from our endowed assets would not only conflict with IRS funding restrictions but would also endanger the long-term power of our endowment. Our trustees have the responsibility to ensure that the endowment remains intact and keeps pace with inflation. To ensure this, we have a spending policy to limit the dollar amounts expended on an annual basis for both grants and operations. Along with stock market fluctuations, tapping into the endowment could impact and reduce our grantmaking abilities for years to come. Our community will need us well beyond the immediate crisis and we need to ensure the Community Foundation is viable for the recovery period and beyond.

Endowment ensures we will be here for the community for good, forever. A great example of the power of endowment is the Harry Williams Fund that was started during the Great Depression. That $5,000 fund has grown to over $9 million in assets and has given out more than $9 million over the life of the fund. Those were troubled times and it would have been easy to spend the funds for immediate needs, but the donor chose to endow them to provide for the present and the future.

What are your next steps for supporting the business community?

We are putting in place some financial programs through intermediaries that will offer low-interest loans on very favorable terms. In essence, we are standing behind the small business community and using the Community Foundation’s assets as a kind of collective bargaining chip to leverage the support we believe local businesses will need—not just for the intermediate recovery period but probably for much longer. We will be announcing details about this program as soon as they are finalized. Stay tuned!

Fremont Area Community Foundation has distributed nearly 8,000 protective masks to businesses and nonprofits in Newaygo County. The initiative is part of a larger effort by the Community Foundation to support local organizations as they navigate the changing economic climate and work to keep their employees and clients safe.

The fabric face masks were distributed to organizations throughout the community, including Family Health Care, Newaygo County Commission on Aging, and the Newaygo County Community Collaborative (NC3). Masks were also distributed to the Fremont Area, River Country, and Hesperia chambers of commerce who are making them available to local businesses. Business owners in need of masks for their staff or volunteers can contact their local chamber.

“The Community Foundation remains committed to being a flexible community resource today and for the long term,” said Carla Roberts, president and CEO. “While this certainly includes grant funding, we are also being creative and adaptable to meet the unique challenges created by COVID-19. We continue to deploy a variety of resources and tools—like these masks—to support response and recovery in Newaygo County.”

The masks are already being used to help organizations address new challenges and safety guidelines. Family Health Care requested masks to provide to their patients and visitors at their clinics. Commission on Aging is using masks to help ensure the safety of their drivers and clients, as pictured, as they continue Meals on Wheels programs and transportation for dialysis appointments.

“Masks are vital during this time. Many people are living with fear and distress and a mask provides both safety and security,” said Joseph Fox, director of the Commission on Aging. “The Newaygo County Commission on Aging works with older adults who are 60 and older. During the COVID-19 situation we have increased Meals on Wheels deliveries by one-third and have continued to transport people with very critical health situations, like dialysis. In all of these situations, masks are necessary to assure older adults that we have their safety and security in mind.”

Providing masks for local businesses and organizations is part of the Community Foundation’s comprehensive effort to meet immediate needs and support long-term recovery efforts. Since March, the Community Foundation has also distributed more than $300,000 in grants from its Community Response Fund to support COVID-19 relief efforts. The fund is the product of a partnership with United Way-Newaygo County and countless generous donors. To date, $58,305 has been donated to the fund. Community members interested in contributing can visit facommunityfoundation.org/covid.

From closures and cancellations to layoffs and other dramatic shifts in operations, we know that local nonprofit organizations and for-profit businesses are all feeling the impact of the COVID crisis. As you work to best serve your customers, clients, employees, and other stakeholders during these difficult times, we want to assist you in finding information and resources that can help.

Since we know that navigating state and federal resources can be a complicated process, we have identified local experts who can provide guidance to point you in the right direction:

Nonprofit agencies
Contact Dan Wheat, community investment officer at Fremont Area Community Foundation: dwheat@facommunityfoundation.org or 231.766.1210

Businesses with 50 employees or fewer
Contact Don Farmer, independent consultant retained by the Community Foundation: farmer.d.w@comcast.net or 231.928.9155

Businesses with more than 50 employees
Contact Julie Burrell, Newaygo County business development coordinator, The Right Place: burrellj@rightplace.org or 231.335.1985

We have also compiled a list of helpful resources below. This list will continue to evolve as more information becomes available. You should consult your business advisors—attorneys, accountants, investment advisors, and bankers—to make the best decisions for the current and future viability of your organization.

  • US Chamber of Commerce launched the “Save Small Business Fund” on April 20 to provide $5,000 grants to as many small employers as possible. To apply, you must run a small business or chamber of commerce with between 3-20 employees and be located in an economically vulnerable community. For more information or to apply, visit www.savesmallbusiness.com.
  • Michigan’s Work Share program allows employers to keep their employees working with reduced hours, while employees collect partial unemployment benefits to make up a portion of the lost wages. With Work Share, you can maintain operational productivity and hang on to your skilled workers. Contact Jonathan Eppley at Michigan Works at jeppley@miworkswc.org or 231.349.4144.

An update from your Community Foundation

Business as unusual—that’s where we are right now. We are all in service to our community, whether operating for profit, as a nonprofit, or as a unit of government. We are all struggling to navigate the current situation and our daily lives have been drastically altered. We are all concerned for our loved ones, our community, our customers, and for our financial and physical health.

Fremont Area Community Foundation is a flexible community resource that is here for the long term. While we cannot address every need across every sector, we are being creative, flexible, and adaptable to the new situation. We envision three distinct phases of need surrounding the COVID crisis:

Respond rapidly for relief: Immediate short-term response
Readjust for recovery: Intermediate recovery
Restructure for renewal: Long-term recovery

Respond: Immediate short-term
Currently, we are focused on immediate short-term needs and have allocated a total of $375,000 to Newaygo County nonprofit entities. These limited funds will not be sufficient to meet the escalation of very critical, urgent needs. These funds are primarily going to agencies that provide food, shelter, medical care, and childcare to a rapidly growing number of residents and essential workers in our community. In collaboration with United Way-Newaygo County, the Community Foundation is raising funds to meet the increased need for basic services in Newaygo County.

Please help support immediate needs in our community by giving at facommunityfoundation.org/covid.

Readjust: Intermediate recovery
The nonprofit sector is adjusting to a new environment. Organizations that provide essential services must adapt to fewer volunteers and new requirements for how they interact with the public. Planned fundraising events may be cancelled. There may be fewer donors as more families struggle because of unemployment. Schools will need additional support as well as hardware and software to move to digital instruction. The list seems limitless. To facilitate intermediate recovery, the Community Foundation is adjusting our grantmaking. This includes grants that have already been awarded, those waiting to be paid, and those under review. We will maximize flexibility and allow project grants to be converted to address the current need.

Businesses are also making major adjustments. Some businesses have a heavier workload but more restrictions on how they do their work. Others have no work at all, especially many of the small businesses that are the backbone of our rural economy.

It is critical that all entities in need of support—whether for profit or nonprofit—seek all available federal and state dollars. We know it is a complex, complicated, and frustrating process. But it is important that local businesses and organizations stick with it and pursue all available opportunities. The longer they wait, the further down the line they will be. Community Foundation resources cannot come close to what can be accessed through government resources.

The CARES Act, signed into law March 27, 2020, provided federal government support in the wake of the coronavirus public health crisis and associated economic fallout. The Paycheck Protection Program gave businesses—both for-profit and nonprofit—the opportunity to apply for a potentially forgivable loan to keep employees working and help with basic expenses such as rent and utilities. Because of overwhelming requests, the funds were exhausted on April 16; however, additional funds may be appropriated. There are other available resources as well.

Now is the time to be prepared for new opportunities as they arise. To help local nonprofits and for-profit businesses navigate available resources, we have identified experts in the community to provide guidance. Organizations should also consult their business advisors—attorneys, accountants, investment advisors, and bankers—to make the best decisions for current and future viability.

  • Nonprofit agencies can contact Dan Wheat, community investment officer, Fremont Area Community Foundation: dwheat@facommunityfoundation.org or 231.766.1210.
  • Businesses with 50 employees or fewer can contact Don Farmer, independent consultant retained by the Community Foundation: farmer.d.w@comcast.net or 231.928.9155.
  • Businesses with more than 50 employees can contact Julie Burrell, Newaygo County business development coordinator, The Right Place: burrellj@rightplace.org or 231.335.1985.

Our Respond and Readjust phases already overlap. We can’t predict how long these phases will last or the magnitude of the need. We also must ensure that the Community Foundation is viable for the recovery period and beyond. The community will need us well beyond the immediate crisis and the intermediate recovery period, and stock market fluctuations may impact our grantmaking for many years to come.

Restructure: Long-term recovery
Newaygo County is a strong, collaborative community. We already work together well. But underneath is a fragility that is being dramatically revealed. Far too many families live too close to the edge. We entered this crisis with over 40 percent of working families unable to make ends meet and that number could continue to grow. Mental health supports will be critical to a community recovering from trauma. Additionally, far too many businesses lack the resources to weather the storm. Our community will require additional support such as human resources and legal and accounting expertise to get back to work and put structures back in place.

As this crisis continues to unwind, we will find ourselves in a different environment. It is likely that some organizations and businesses will no longer be with us, but the needs will continue. As we rally together to determine how to meet ongoing needs, the long-term recovery will be a time of opportunity and a time to restructure in ways that ensure capacity to meet the next crisis stronger and even more unified.

What we do today will have a deep and lasting impact on tomorrow. The Community Foundation is deploying as many tools as we can leverage to ensure that we are here for our community today, tomorrow, and forever!

Best regards,

Carla A. Roberts
President and CEO

Fremont Area Community Foundation is currently monitoring the impact of COVID-19 (coronavirus) in both the state and our local region. We have taken steps to protect the health of our staff, trustees, and others by closing our office to the public, postponing events, and encouraging staff to work remotely. We also know that many of our nonprofit partners are now experiencing an increased need for services, especially as they work to support the most vulnerable members of our communities. We have worked hard to determine the best ways for our community and philanthropy to respond.

On March 19, we established the Community Response Fund to rapidly deploy resources to nonprofit organizations in Newaygo County as well as the three counties served by our affiliate foundations: Lake, Mecosta, and Osceola. The fund will provide quick help to organizations serving vulnerable populations impacted by COVID-19 and will give generous community members an easy way to support them.

Donate now

Give now to support the organizations, programs, and staff on the front lines of response in your community. You can designate your gift to a specific county.
Give now

Apply for a grant

Is your organization supporting children, older adults, and other vulnerable populations impacted by COVID-19? Apply for a grant from our Community Response Fund. Grants will be considered that address issues such as childcare, food insecurity, healthcare, transportation, financial assistance, general operating support, and other identified needs. For more information, contact Mark Petz, director of community investment, by email or at 231.519.1464.

To view a list of grants made from the fund so far, visit the grants awarded page of our website and sort by “Community Response Fund.”

Other resources

If you are looking for food, housing, transportation, or financial assistance, please call 211. You can also access a list of resources from their website.

For more information on COVID-19 and local response actions, visit the following websites:

Updated Monday, March 16

In order to proactively guard the health of our staff and their families, as well as our many stakeholders, Fremont Area Community Foundation will be closing our office starting tomorrow, March 17. Normal functions will continue as much as possible, with many of our staff members working adaptive schedules from home. You can reach our team via email or by calling the main line.

We also know this crisis is impacting those in our community who are most vulnerable and we are working hard to determine the best ways for committed individuals and local philanthropy to respond. Stay tuned to our website and social media for ways you can get involved.

 

Original post: Friday, March 13

A message from Carla Roberts, president and CEO, regarding coronavirus (COVID-19) preparation and support

To our community,

Fremont Area Community Foundation is currently monitoring the local impact of COVID-19 (coronavirus) in both the state and our local region. While the situation is constantly evolving, our highest priority is to preserve the health of our employees, trustees, grantees, donors, and larger community. As such, we wanted to provide an update on the active steps currently underway (as of 3/13/2020).

Our office
We are taking every precaution to protect the health and well-being of our employees. Our internal response plan follows the guidelines laid out by the Centers for Disease Control (such as hand washing, regular sanitation of surfaces, and requiring sick employees to stay home) and our essential services team will regularly monitor and comply with public health requests and recommendations. It may ultimately be necessary to close our office to ensure the safety of our staff and larger community. If such a step is taken, we will let stakeholders know and make every effort to continue to offer vital services such as accepting and deploying emergency funds.

Upcoming events
All Community Foundation events being held in the next few months are being reviewed for possible cancellation, postponement, or alternate accommodation (i.e. virtual meeting). Once decisions are made, registrants and stakeholders will be informed in a timely manner through email, phone call, social media, or on our website.

Nonprofit resources
There will likely be a need for increased services for the nonprofits in our community and philanthropy may have a role to play. Please be assured we are in discussions and exploring options to support our community and we will share more information as it becomes available. We remain informed about emerging vital needs through Newaygo County Emergency Services and other channels.

Thank you for your patience and understanding. In challenging times like these, we find ourselves exceedingly grateful for the caring and collaborative nature of the people in this community. As we learn more about local needs, we will share our responses and welcome hearing from you in the meantime.

Best regards,

Carla A. Roberts
President and CEO