MiBiz September 14, 2020 print edition

2020 Athena Award winner Tasha Blackmon

‘Well-intentioned’ eviction moratoriums may cause homelessness bottleneck

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SEPTEMBER 14, 2020 • VOL. 32/NO. 24 • $3.00

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Michigan’s surprise billing legislation attracts national attention

SIX MONTHS IN

Small businesses reflect on the ups, downs, optimism and bleakness of the COVID-19 pandemic. SEE PAGE 10.

BY ANDY BALASKOVITZ | MiBiz

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

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legislative effort to curtail surprise medical billing in Michigan has gained attention from national health care organizations shifting their focus to states amid stalled efforts federally.

One of those groups says the Michigan legislation moving toward final passage could even serve as an example for other states to follow when considering surprise billing legislation.

“We think that Michigan thus far is a model,” said James Gelfand, senior vice president of health policy for the Washington, D.C.-based ERISA Industry Committee whose members include large employers across the country.

“The Michigan debate so far is heavily favoring patients,” Gelfand added. “One unique thing about the Michigan bills is that it is very patient-centric and uses market mechanisms, as opposed to being a giveaway to these hospitals and doctors.”

The ERISA Industry Committee recently submitted written testimony to a state Senate committee in strong support for surprise billing legislation that state lawmakers have worked on for a year and a half.

See SURPRISE BILLING on page 12

SAUGATUCK 5.0?

COVID-19 drives business and civic leaders to turn the Saugatuck-Douglas lakeshore tourist spot into a year-round destination

By KATE CARLSON | MiBiz kcarlson@mibiz.com SAUGATUCK — Business and civic leaders along the West Michigan lakeshore realized in March that COVID-19-related shutdowns could have a devastating effect on the already short summer tourism season that fuels the beach towns’ local economies.

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A group of community leaders from Saugatuck, Douglas and Fennville started meeting informally through regular Zoom meetings in the early stages of the pandemic, referring to themselves as “Saugatuck 5.0.”

They tackled immediate needs like setting up a small business COVID-19 loan and grant fund, and forming consistent safety procedures for downtown businesses.

Now the group is starting to look at larger, foundational issues surrounding the area’s short tourist season that could leave it vulnerable to future unexpected events.

However, the group faces a series of obstacles to their goals, including lacking a key economic development agency and inadequate wireless internet infrastructure.

See SAUGATUCK 5.0 on page 7

Shoppers peer into a downtown storefront on Sept. 9 on Mason Street in Saugatuck.

MIBIZ PHOTO: KATE CARLSON

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Farmers markets prove crucial for food startups during pandemic PAGE 23

INSIDE:

Family Business SEE PAGE 17

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SEPTEMBER 14, 2020 / MiBiz

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Investors welcome new SEC accreditation rule — whether it expands capital remains unclear

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

“While the actual numbers of those affected by this rule change is small in comparison to the investing populace, I do think this signals a small ecurities regulators hope a change in step forward by the SEC in using something other the federal definition of accredited than net worth as an indicator of accreditation. investors brings more people into the This takes into account personal experience and investor pool for startups and other sophistication and sets it on par with net worth,” companies seeking private capital, said Dale Grogan, managing director at Grand although it remains unclear whether it will signifRapids venture capital firm Michigan Accelerator icantly affect the flow of capital.

Fund I. The U.S. Securities and Exchange Commission’s Skip Simms, managing partner at Michigan new rule that takes effect this fall broadens the defiAngel Fund in Ann Arbor who has been pushing nition of an accredited investor who can participate to grow the pool of angel investors in the state, in private offerings to include people who hold cergave the SEC rule change a “thumbs up.” tain financial professional accreditations or certifiThe rule change can grow the investor pool, cations and “knowledgeable” employees at private although potential angel investors who may now investment funds. meet the new accredited investor requirements Rather than rely on an income and wealth still need to have accumulated enough wealth to threshold in place for nearly four decades, the rule actually invest, Simms said.

“It opens the door a little bit more for more people to invest in private equity, but I’m not confident it will significantly move the needle in terms of making millions of dollars suddenly available for small businesses, startSimms Grogan Boucher Parker ups and various entrepreneurs,” he said in an modernizes the definition by opening accredited email. “Allowing financially sophisticated people investor eligibility to people who are financially not yet considered high net worth is good, but sophisticated enough to understand the inherent without a high net worth they will not have the risks of investing in private offerings. wherewithal to make significant investments, and “In terms of raising money and for our clients they already had the ability to make small investand for business, people who have these types of ments through crowdfunding platforms. … We’ll credentials should be smart enough to not spend know within a year how meaningful these changes their money unwisely,” said Josie Boucher, execwill be.” utive partner of Warner Norcross + Judd LLP’s Perhaps more important to Simms is that the Kalamazoo office who chairs the law firm’s Funds new SEC definition would allow entities such as and Investments Services Practice Group. limited liability companies, family offices and their Boucher cites, for example, financial profesfamily clients, rural business investment compasionals who are licensed by the Financial Industry nies, Native American tribes, and governmental Regulatory Authority (FINRA), an organization bodies with at least $5 million in assets to become that writes and enforces the rules for registered accredited investors. Those entities “could put milbrokers and broker-dealers in the U.S., as having lions into the private economy quickly,” he said. the sophistication for an accredited investor.

“The bigger news that appears to me is the The SEC rules defining an accredited investor impact of the addition of certain institutional are designed “to protect people from themselves,” investors,” Simms said. “Angel funds and micro she said, “and I don’t know how much protecVCs could be big beneficiaries. The funds offer tion people who are highly qualified need from a less cumbersome way for these investors to themselves.” achieve the diversification they need for high returns without having to allocate a lot of time to source and do the diligence needed for success.”

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Growing the pool?

Investment professionals MiBiz contacted for perspectives on the SEC rule change said the updated definition is long overdue, though they wonder how far it can actually grow the investor pool in the U.S. and the availability of private capital.

‘Thoughtful and appropriate’ The present definition of an accredited investor goes back nearly four decades and uses a financial threshold. To become an accredited investor,

a person needs an annual income of at least $200,000 or minimum assets of $1 million.

“It was solely tied to wealth,” Boucher said.

“If you did not hit those, you could be a fantastic, sophisticated investor, but you could not qualify as an accredited investor.”

Boucher calls the changes by the SEC “thoughtful and appropriate.” Like others, she’s unsure how many new accredited investors could result from the definition change, though “there’s a lot of times people are close, especially at the beginning of their careers, to those thresholds, but haven’t hit them.”

“They would have been unable to participate in these types of offerings because they don’t qualify as an accredited investor,” Boucher said. “Now they would, if they can fall into one of these new categories that were specifically added.”

Tim Parker, president of Grand Rapids-based Grand Angels, also welcomes the updated definition, including the addition of “spousal equivalents.” That change allows, for instance, domestic partners to “pool their finances for the purpose of qualifying as accredited investors,” according to the SEC. Parker considers the rule changes “one step in the right direction” that brings the accredited investor definition “forward to the 21st century.”

“Certainly, the pool of investors will increase by allowing family offices, financially certified individuals or knowledgeable employees to invest in private offerings. It is also encouraging to finally allow spousal equivalents, rather than simply spouses, to be considered when calculating net worth,” he said in an email.

Lower thresholds for equity However, Parker wishes the SEC had gone further. A board director at the Center for American Entrepreneurship, Parker hoped to see regulators lower the net worth threshold to enable more people to become involved in angel investing.

“In order to bring in more investor diversity, lowering the net worth requirement as long as investors are working with a professional investment organization will provide a more equitable playing field. This will not only bring in younger investors, but also help us create an investor base that more accurately represents the communities we serve,” Parker said. “The connection to an investment organization will provide education helpful for new investors. New businesses are the lifeblood of our economy and we need to allow more people to participate.”

Even in issuing the new 166-page regulation Aug. 26, the SEC said it was unable to estimate how many more people could become accredited investors, although commissioners “are confident that the final amendments will cause some modest increase in the number of individual accredited investors.”

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MANUFACTURING

Manufacturing Growth Alliance helps firms seek new ideas to weather COVID-19

By JAYSON BUSSA | MiBiz jbussa@mibiz.com

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eff Brennan is hungry for new ideas and best practices that might help his manufacturing business slog its way through the COVID-19 pandemic.

“During this pandemic, you start looking out for different resources to figure out how to get by,” said Brennan, vice president of Stevensville-based Dura Mold Inc., a maker of plastic injection moldings and die cast dies for a variety of industries.

“We’re in the midst of transformation in our business so we’re looking for things to help us grow and get better so we can emerge from this as a healthy company,” Brennan told MiBiz. Brennan and Dura Mold are like many manufacturers who are trying to figure out the best way forward amid a turbulent business environment.

Small and mediumsize manufacturers across Michigan are facing unprecedented times and uncertain futures, creating a landscape where virtually all ideas are Deamud worth considering.

This quest for new ideas has Brennan and his team tapping into resources made available through organizations such as the Small Business Association of Michigan (SBAM) and, more recently, the Manufacturing Growth Alliance (MGA).

McCabe “Where there are things that can add value to our business, we sign up for it,” Brennan said. “We grab a group of people to sit through those things.

If you think about it, it’s an investment because you have half a dozen high-level folks in our company who could be out doing something productive on the shop floor, but we’re hoping it makes a difference long term.”

“The topics (of the webinars) are based on conversations we had with manufacturers across the state,” Deamud said. “For example, creating a virtual work environment is one. Many of us are home and still working, including a portion of our manufacturers.”

Topics for these hour-long sessions also include building a strong data strategy and communication and culture within a company.

Another recurring webinar deals with the Family Medical Leave Act (FMLA) and keeping manufacturers updated on the policy and how to stay in compliance with these regulations.

“A lot of time, these second-stage manufacturers with 10 employees or 15 employees, they likely don’t have an HR manager, so the owner or the president of the company is having to not just administer FMLA, they have to understand it because they want to be in compliance,” Deamud said. “They need resources to answer their questions.”

Learning to pivot “Pivot” has become one of the biggest buzzwords of the COVID-19 pandemic as manufacturers find themselves harnessing their capabilities in new and different ways to seize opportunities and stay afloat.

To that end, MGA partnered with Ann Arborbased Shepherd Advisors to make the firm’s PIVOT 2020 tool available to members and interested manufacturers. The PIVOT 2020 tool, which helps manufacturers plan for the unknown, is contained in an e-book that is free to download.

“I believe that our manufacturers are seeing long-term possibilities,” Deamud said, noting trends such as reshoring production to the U.S. from overseas. “The other trend, too, is diversifying supply chains. Now that there is a little bit of a clearing ahead, (manufacturers) are recognizing they have to pivot to maintain their growth and also pivot so they can position themselves for these opportunities that will be coming to the U.S.”

in those futures and then identity indicators to Shepherd Advisors works with both service determine which of those futures will actually companies and manufacturers, with half of its come to fruition. clients belonging to the manufacturing sector.

McCabe said that all manufacturers will have The consulting firm focuses on optimizing the a chance to pivot, and some of them will have growth strategies of businesses. to if they want to get through the pandemic still Typically, Shepherd Advisors aims to help intact. companies double their growth in three to five “There is a pivot opportunity for everyone,” years.

McCabe said. “Pivot opportunities might be difNow, amid the pandemic, the firm is working ferent from what they’re doing now and require to address the more immediate needs through a different take on things, but most manufacPIVOT 2020. turers have a course and capability that can be “We decided that we needed to retool ourapplied in a variety of different ways. And, PIVOT selves to be able to support companies where 2020 is a process of thinkthey are right now,” ing through it strategically Shepherd Advisors and saying, ‘If we’re getPresident and CEO Loch ting different futures and McCabe said. “Instead we want to survive and of helping them to get thrive, how are we going through the next three to to be different to achieve five years, how about the that?’” next six months?”

In addition to making Scenario planning is the tool available through the primary tool in PIVOT the Manufacturing 2020. This is an exercise Growth Alliance, Shepherd designed to address great Advisors also works with amounts of structural Gra n d Ra p i d s - b a s e d uncertainty and someMichigan Manufacturing thing that very large com— JEFF BRENNAN Technology Center-West panies often do when they Sales Manager of Dura Mold Inc. (MMTC-West), among are planning several years other organizations. ahead of time. McCabe “I’m excited about MGA said it’s proven valuable for as an organization that is focused on specifically small and medium-size manufacturers trying to supporting the growth of small and medium-size get through an unprecedented market event in manufacturers and helping them grow,” McCabe the COVID-19 pandemic. said. “It’s a value-added service that I think is In the exercise, company leaders identify difunderserved right now in the state.” ferent futures, develop strategies to be successful

“We’re in the midst of transformation in our business so we’re looking for things to help us grow and get better so we can emerge from this as a healthy company.”

Responding to needs The Manufacturing Growth Alliance, which is a part of Benton Harbor-based economic development, workforce development, and innovation nonprofit Kinexus Group, directly supports second-stage manufacturers throughout the state and focuses on companies with less than $50 million in sales and fewer than 100 employees.

With COVID-19 decimating the manufacturing industry, MGA developed resources that specifically address the pain points brought on by the ongoing pandemic.

According to Executive Director Jennifer Deamud, before the organization developed tools or programs, it was intentional about listening to manufacturers across the state and learning about their needs.

One product of those conversations was a series of webinars, roundtable discussions with industry experts and learning opportunities that were made possible through MGA’s collaboration with a number of partnering organizations, such as Ann Arbor-based Automation Alley, a nationwide knowledge hub for Industry 4.0.

The webinars and virtual roundtables are available for free until the end of the year.

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Q&A: Navigating PPP Loans in M&A Transactions 1. Does my PPP loan prohibit me from selling my business?

No, but there may be unintended consequences depending on the situation.

A borrower should always review the terms of the promissory note they signed in connection with the PPP loan before proceeding with any sale transaction. At the very least, lender consent is likely needed to sell the business and to avoid an event of default.

2. If I sell my business, will that jeopardize my PPP loan forgiveness?

This is the million dollar (or at least the value of your PPP loan) question. To date, the SBA has not provided guidance that specifically addresses loan forgiveness in the context of the sale of a business. Assuming a borrower obtains lender consent (See Question 1 above), then based on the statute, regulations, and guidance released to date, forgiveness should be permitted. However, a PPP borrower should keep three important items in mind: a) If all of the PPP funds have not been spent by the borrower as of the date of the sale, that could create a forgiveness issue

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SEPTEMBER 14, 2020 / MiBiz

since the borrower will no longer be able to spend PPP funds on payroll costs, which must represent 60% of the PPP funds spent by borrower; b) The question of whether or not the borrower’s “covered period” has expired as of the date of the sale is critically important. If not, there could be a reduction in the forgiveness amount. For example, if a borrower elects to use the 24 week covered period, spends all of the PPP funds by week 16, and then closes on the transaction in week 20 prior to seeking loan forgiveness, then by the time the borrower does seek loan forgiveness by submitting an application, its full time equivalent (FTE) employees will be zero, which would result in a reduction in the forgivable amount of the PPP loan due to the borrower’s reduction in FTE’s; and c) The guidance provided by the SBA changes quickly and often. The SBA could issue future guidance that changes this answer.

3. If I am buying a business that obtained a PPP loan, where should I focus my attention?

From a buyer’s perspective, it would be best to treat the PPP loan like any other debt that would be paid at closing. However, many

sellers are unwilling to take this approach because, assuming a cash-free, debt-free transaction, they are essentially agreeing to pay for a loan using purchase price proceeds that could be mostly (if not fully) forgiven.

If it is not possible to pay off the loan at closing due to seller’s unwillingness, then at a minimum, the purchase agreement should include a representation and warranty of the seller that states that the PPP application and certifications made to the lender were accurate (especially the necessity certification) and that all PPP funds were spent on qualified expenses permitted by the PPP program. In the event of a stock purchase, the buyer should also request copies of the substantiating documents with respect to PPP funds as these would be required to be submitted at the time the loan forgiveness application is submitted. Finally, part of buyer’s due diligence activities should include a review of the borrower’s eligibility for the PPP loan, the loan application, and the use of PPP funds. The buyer’s risks in any transaction must be evaluated on a caseby-case basis depending on the structure of the transaction, the borrower’s existing credit facilities with its PPP lender, and other relevant factors.

4. What else should I consider when negotiating a transaction when a PPP loan is involved?

Although every transaction is unique, a few items should be considered up front. First, if there is a net working capital component to the transaction, should the PPP funds be considered in that calculation, or should the parties use a pre-COVID calculation?

Second, if a seller insists on allowing the PPP loan to survive closing, should a portion of the purchase price equal to the PPP loan be escrowed or held back until the loan is forgiven? There are other issues to consider, but these specific issues should be addressed by both parties at the LOI stage of the transaction.

Rhoades McKee Mergers and Acquisitions specialists assist buyers, sellers, shareholders, investors, lenders, and business brokers to identify and address the unique issues in a PPP loan specific to your transaction. For more information about the Rhoades McKee Mergers and Acquisitions team and subscribe to further updates, visit rhoadesmckee.com

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ECONOMIC DEVELOPMENT SAUGATUCK 5.0 Continued from page 1

Saugatuck 5.0 is based on the idea that the city has gone through four major transformations of its economy: a trading post on the river, logging and shipping, fruit growing, and tourism. The group is now looking to grow the area by attracting more permanent residents and stabilizing a year-round economy that currently does not exist.

Rather than solely relying on summer tourism, they’re hoping to attract permanent residents who would stay in the area for more amenities in the greater Saugatuck area, said Jim Sullivan, Saugatuck-Douglas Rotary Club president.

“We envision Saugatuck 5.0 as an environmentally wonderful, artistically sophisticated refuge,” Sullivan said. “Building on our 100-day tourism season we think is the challenge and opportunity we have now.”

Sullivan The group of women who own Isabel’s Market + Eatery, a specialty market and event space in Douglas set to open this summer, are involved in the 5.0 initiative and intentionally have planned for Isabel’s to be a year-round business.

It is impossible to really Estes build an economy out of the short summer tourism season, said Elizabeth Estes, one of the owners of Isabel’s. She also is a co-owner of Coast 236 Restaurant & Bar in downtown Saugatuck.

The group is trying to “plant the seed” with Isabel’s Market that there is support for a year-round business, Armstrong Estes said.

Like many beach towns, Saugatuck has a strong tourism component, said Saugatuck Center for the Arts Executive Director Kristin Armstrong. Tourist towns in the Midwest are presented with an extra challenge of having a small window of warm Durham weather when they need to do well, Armstrong said.

“COVID-19 was really the catalyst for this particular group of people who said we need to get beyond this 100-day tourism season,” Armstrong said. “The model is broken, it doesn’t work anymore, and we can clearly see that when there is this disruption.”

The pandemic has proven to be a new unpredictable event in addition to recent high Lake Michigan levels that can and have caused flooding in downtown Saugatuck and Douglas, Armstrong said.

The Saugatuck Center for the Arts has operated on a year-round model, but has been more robust in the summer. Moving toward a yearround economy would help support additional smaller events at the arts center beyond the big concerts, Armstrong said. It could spark interest in holding more classes or additional small entertainment or niche events, she said.

The pandemic has given the area a chance to “reset,” which the Saugatuck 5.0 group is embracing, Armstrong said.

“One of the upsides to COVID-19 is it has impacted everyone, not just one or two businesses. Everybody got hit with this, so it has really pulled people together in terms of working with our friends and neighbors,” Armstrong said.

Regional economic development Saugatuck City Council member Garnet Lewis realized an obstacle early in the 5.0 discussion: Visit www.mibiz.com

“COVID-19 was really the catalyst for this particular group of people who said we need to get beyond this 100-day tourism season.

The model is broken, it doesn’t work anymore, and we can clearly see that when there is this disruption.”

— KRISTIN ARMSTRONG Executive Director, Saugatuck Center for the Arts

Patrons dining at Bowdies Chophouse on Culver Street in downtown Saugatuck (top). The New Holland Spirits tasting room in downtown Saugatuck has stayed open during the pandemic, offering customers options including to-go cocktails. MIBIZ PHOTOS: KATE CARLSON Saugatuck and Douglas do not have basic economic development tools like a Downtown Development Authority. This makes it hard to have a communitywide economic development focus, she said.

“We see it as imperative that we take this opportunity and come together as three communities to develop a strong economic development plan for the region that helps not just the tourist season, but year-round residents as well,” Lewis said.

If the region had a formal economic development group, it would be competing with neighboring cities like Holland and South Haven. Both cities have DDAs and are able to facilitate yearround events, streetscape programming, partnerships and promotions for downtown businesses, Lewis said. Meanwhile, not having such an economic development program makes the towns ineligible to seek state funding through the Michigan Economic Development Corp., Lewis added.

Hot real estate, infrastructure challenges Part of the Saugatuck 5.0 initiative is to attract more residents who stay in the area year-round as opposed to just the summer months. With

many large employers turning to long term or permanent remote working strategies, residents in large cities are no longer tied to them because of their jobs.

Mill Pond Realty Owner and President Laura Durham has worked as a realtor in the area for 39 years, and 2020 is the busiest summer she has ever seen in the Saugatuck-Douglas real estate market.

“There is a huge uptick in the market, we just don’t have enough properties to sell,” Durham said. “We need more inventory to accommodate the people who want to buy a home here.”

Durham has sold homes to a wide range of buyers this summer at varying price points.

Gregg Smith, an associate broker at Coldwell Banker Schmidt, Realtors, has a similar success story from this year. Most of his clients have been from larger cities like Chicago, Indianapolis and New York City, he said.

“Between my office and other agents I’ve spoken to, everybody seems to be having record years if not close to record years,” Smith said. “I think a lot of people realized they don’t have to go to the office to work and realized they can work from home.”

Smith’s clients have ranged from young professionals, retirees and families.

“Homes will go up and I’ll have multiple offers within 24 hours if not less,” Smith said. “We have not seen that in quite some time and that’s happened to me several times this summer.”

Despite the quality school systems, attractive beach living and artistic amenities that the beach towns boast to tourists and potential residents, some infrastructure concerns remain.

“Our Wi-Fi is poor downtown,” Estes said.

“When you start talking about people that could start working here remotely full time, that might be an issue. Mostly it’s a good thing, but for a small community like ours, there are some infrastructure obstacles.”

Local benefactors banded together and purchased mobile hotspots for some students who are going back to school remotely but did not have strong Wi-Fi at their house, Sullivan said.

“It’s a critical issue,” he said. “You can go two or three miles inland off the lakeshore and you can’t get internet connection.”

AT&T Communications has reached out to the city about the possibility of 5G, but it’s a matter of placing the big and bulky devices, Lewis said. Typically, a municipality needs to get approval from its planning commission before bulking up broadband infrastructure because of the aesthetics of the structures.

However, modernizing the city’s internet is a necessity to growing a year-round economy.

Lewis is optimistic about expanding the region’s broadband in the near future to support the Saugatuck 5.0 initiative.

“The opportunity for us to get 5G is there,” Lewis said. “It’s a matter of educating the public and dispelling the myths about it.”

MiBiz / SEPTEMBER 14, 2020

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REAL ESTATE & DEVELOPMENT

GR nonprofits seek land bank properties, state legislation to grow affordable housing stock

By KATE CARLSON | MiBiz kcarlson@mibiz.com GRAND RAPIDS — Local housing nonprofits are beginning to vet dozens of vacant properties made available through the state’s Land Bank Authority in an effort to fill the city’s need for affordable housing.

On Aug. 25, t he Gra nd Rapids Cit y Commission approved new criteria for how the state land bank can market properties for the cit y. Nonprof it housing orga n i zat ions w i l l now have the ability to purchase and redevelop up to 67 different foreclosed properties for affordable housing projects.

The city of Grand Rapids Thiel previously worked with the Kent County Land Bank until the county dissolved its land bank authorit y, prompting the city and the state Lank Bank into an agreement in October 2019.

The sale of the properties will only be available for Habitat for Humanity Glover of Kent County, Inner City Christian Federation, LINC UP, Next Step of West Michigan, Well House, Dwelling Place, New Development Corp., Genesis Nonprofit Housing Corp., and 3:11 Youth Housing.

The nonprofits can purchase the properties if they demonstrate at least one of the following criteria: rehabilitation for 80 percent of the area median income for home ownership; rehabilitation for 60 percent of the area median income for renters; placement of the property in a Community Land Trust; and rehabilitation for emergency or transitional housing under an existing organization’s program.

Kent County Habitat for Humanity Executive Director Bev Thiel said the effort comes as the COVID-19 pandemic already pushes nonprofits to work collaboratively.

“Providing people with safe, stable housing has been a bigger issue right now as we go

Removing barriers

The vacant lot 935 Kalamazoo Ave. SE, near the Madison Area Neighborhood of Grand Rapids, is among 67 foreclosed properties that will be available for local housing nonprofits to purchase and redevelop following recent action by the Grand Rapids City Commission. MIBIZ PHOTOS: KATE CARLSON through the pandemic, and anything the city can do is a high agenda item,” Thiel said.

Supply and demand Habitat for Humanity seeks to acquire some of the land among the 67 properties, and its team is now going through the vetting process to purchase and develop it, Thiel said.

“We’re advocates for homeownership and this provides us with opportunities to get people in safe, decent homes as long as we continue our strong collaboration within the city,” Thiel said.

Allowing housing nonprofits to purchase and redevelop foreclosed properties is in response to a recently published Housing Next study indicating Grand Rapids needs nearly 9,000 more housing units by 2025 to keep up with demand.

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SEPTEMBER 14, 2020 / MiBiz

Of the 67 vacant properties now available to housing nonprofits to purchase and develop, about six are large enough for multiple housing units, said Housing Next Executive Director Ryan Kilpatrick. The rest would likely be suited for single family homes.

“These 60 properties are definitely not the end all solution (to affordable housing), but the hope is — using these properties as leverage — we can start to spark more affordable housing while the city focuses on other developments,” Kilpatrick said. “Every additional unit is a step in the right direction.”

Publicly owned property is a good leverage point to initiate additional housing construction, Kilpatrick said. The goal is to try to prioritize the lots that accommodate more than one single family home, but still make all of the properties available at the same time for housing nonprofits.

Habitat for Humanity focuses on the homeownership side of affordable housing, and facilitates new builds of single-family homes, renovations and home repairs. Typically, Habitat procures a site for a home through its community development real estate department which is always looking for land acquisition opportunities, Thiel said.

“Any time we can drive down the cost of housing for the family is the option that comes out ahead,” Thiel said. “Our staff has been in conversations with the city for some time around this potential opportunity, and the city has been a great collaborator to work with.”

Habitat for Humanity of Kent County has more than 1,200 families interested in getting a home through the housing nonprofit, a need it will obviously not be able to meet this year, Thiel said. The need far exceeds what any one organization can provide, she added.

“The need (for affordable housing) has remained relatively stable,” Thiel said. “What we’re starting to see is a broader base of folks who are experiencing affordable housing as a barrier.”

Meanwhile, Grand Rapids officials and housing nonprofits are rallying around statewide legislation proposed earlier this year meant to incentivize private investment in affordable housing. Under two bills sponsored by state Reps. Ronnie Peterson, D-Ypsilanti, and Aaron Miller, R-Sturgis, qualifying 501(c) (3) nonprofits would submit “community investment plans” to the Michigan Strategic Fund, while investors supporting a project could claim a tax credit equal to 50 percent of the investment, capped at $25 million.

Supporters say the legislation highlights the lack of funding available to housing nonprofits for acquiring and rehabilitating properties.

A Grand Rapids economic development official and New Development Corp. Executive Director Helen Lehman recently testified in support of the bills, saying it would help nonprofits achieve more of their housing goals by encouraging private investment in properties and projects.

“Right now, we have three vacant lots that could be utilized for affordable housing if the money was available. It simply is not,” Lehman said during a Sept. 2 House committee hearing.

“We could use this to bring new private dollars into our community.”

‘Just the first step’ A large part of Grand Rapids-based Well House’s work already involves acquiring foreclosed properties through the land bank, but the new collaboration with the city should make the process a little easier, said Executive Director John Glover. Having more access to foreclosed properties will help Well House and other housing nonprofits lower the cost to acquire land for affordable housing developments, he said.

Acquiring a typical four-bedroom, oneand-a-half bath home typically costs about $160,000, but that could be significantly reduced by acquiring it through foreclosure, Glover said.

Well House has about 65 tenants across its 15 single-family homes, with most of its homes operating as shared living spaces.

Many of the properties in this new initiative will need a total rehabilitation or new build out on the lot, but Well House will work to acquire the properties it is interested in pursuing for affordable housing developments, Glover said.

“This is just the first step in what is truly going to be a multiple step process,” he said.

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A CONSTRUCTION MANAGER’S ROLE IN THE AFFORDABLE AND LOW-INCOME HOUSING PROCESS

L

BY: TRIANGLE

“The Grand Rapids Housing Commission is pleased to work with HUD, the Veterans Administration, Disability Advocates of Kent County, The Salvation Army, Network 180 and other partner organizations to provide not only housing assistance but also supportive services that will help veterans and other vulnerable households maintain housing stability,” said GRHC Executive Director, Carlos A. Sanchez.

ike many cities across the US, Grand Rapids continues to see a need for affordable and low-income housing. The topic has long been in discussion in the community thanks to a limited housing supply, high demand market and increasing rental rates.

Triangle Associates, a long-time advocate committed to addressing these issues, has constructed nearly 1,200 units of affordable and low-income housing in the last 15 years including over 400 for the Grand Rapids Housing Commission (GRHC).

Triangle is currently overseeing the construction of Antoine Court, a $13.5 million development for the GRHC. The new 56,000 sq ft housing facility will be located on Division Avenue between Antoine Street SW and Delaware Street SW. The three-story structure will feature fifty 690 sq ft one-bedroom apartments.

In order for Antoine court to come to fruition, GRHC needed to secure funding, an issue many nonprofits face.

Triangle’s Project Development Manager Brianne Pitchford is helping oversee the development and construction of Antoine Court. She believes construction managers play a vital role that extends beyond the construction phase in the process of building affordable and low-income housing.

“It’s our job to be subject-matter experts and offer preconstruction support,” Pitchford said. “We understand the needs of non-profit agencies including the details and reporting required on projects receiving funding, financing and various tax credits from multiple sources.”

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In addition to project development and providing boots on the ground, construction management firms like Triangle support the mission of affordable and low-income housing communities well beyond project completion. Triangle employees spend time volunteering for numerous non-profits including Habitat for Humanity, Well House and Dwelling Place, assisting with fundraising, and providing public relations services.

For Antoine Court, GRHC set a project metric to achieve a 30% Section 3 workforce participation goal to secure Housing and Development funding. The goal of Section 3 is to ensure economic opportunities generated by government-provided financial assistance programs are directly training and employing low-income populations and public housing residents.

“It’s one thing to give these residents a home but another to give them an opportunity for employment and training,” Pitchford said. “As a construction management firm, it’s our job to provide opportunity for equal employment for everyone and the Section 3 program helps us achieve that.”

The Triangle team in conjunction with the GRHC developed a project-specific Section 3 plan that outlines the project goals for both awarding contracts to Section 3 certified businesses as well as a hiring and

recruitment path for GRHC residents, Section 8 Residents and the neighboring community. For Antoine Court, construction began in June and Triangle is already on pace to exceed one of the project goals with 35% of the work to be completed by Section 3 certified businesses.

“We don’t just provide the brick and mortar building. We are here to support community development,” Pitchford said. “We believe in being active supporters of our clients’ mission by providing low-income and affordable housing that enhances every individual’s quality of life.”

Another source of project funding comes from the state’s low-income housing tax credit (LIHTC); however, LIHTC comes with its own set of requirements including green building standards and a percentage of Michigan-made products.

Antoine Court is slated to open October 2021 and will pursue LEED Gold certification.

Antoine Court will be tailored to meet the needs of homeless veterans, adults with disabilities, and seniors ages 62 and older. The GRHC currently administers 22 HUD-Veterans Affairs Supportive Housing (HUD-VASH) Vouchers and plans to provide an additional 28 Section 8 Project-Based Vouchers so that all units at Antoine Court will be rent subsidized.

www.triangle-inc.com 616.453.3950 MiBiz / SEPTEMBER 14, 2020

9

SMALL BIZ: COPING WITH COVID-19

SIX MONTHS IN

Small businesses reflect on the ups, downs, optimism and bleakness of the COVID-19 pandemic

By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com

uncertainty. In other cases, entrepreneurs have discussed their renewed commitments to equity as a result of social justice activism. n early May, MiBiz began featuring A common thread among each of these small businesses across Western and businesses is a changed long-term outlook and Southwestern Michigan in a section called at least some operational and management “Coping with COVID-19.” The goal was to changes that will stay in place — as well as their tell the stories of small businesses adjusting lack of a clear sense of any sort of return to norto the global pandemic and capture their outlook malcy. As the owner of a solar panel manufacat this historic point in time. turer near Manistee put it: “We’re not out of the Since then, the section has prowoods yet. I really believe we’re filed 51 companies and business going to be on guard for another owners that — as it turns out — run year.” Others say they won’t fully the full spectrum of the COVID-19 rebound until 2023. experience.

Meanwhile, COVID-19 is still Sponsored by: SMALL BUSINESS MiBiz followed up with some of very much present in the U.S. and ASSOCIATION these businesses at the six-month Michigan as we’re less than two OF MICHIGAN mark of the pandemic. We’ve heard months out from a — pardon the from concert venues that aren’t sure cliche — consequential presidential whether they’ll ever reopen; hospitality and serelection. While hope remains for a widely availvice industry companies that were hanging on by able COVID-19 vaccine, the region is, indeed, not a thread but have adapted to slowly regain a footout of the woods yet. hold; and thriving manufacturers whose businesses turned out to be pandemic-proof. Many Bleak future also had a first experience applying for nonprofit As business reopenings took on a decidedly pargrants or government loans to help bridge the tisan nature by late spring, concert venues — financial gap during the massive disruption in where Republicans, Democrats, Independents, the business climate. anarchists and the apolitical seek respite from Experts also have shared stories about the outside world — have remained dark with the mental health toll that comes with runvirtually no timeline for reopening. ning a small business amid such widespread

I

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SEPTEMBER 14, 2020 / MiBiz

Alysha Lach White, founder of Little Space Studio co-working space in Grand Rapids, says business is slowly ramping back up, though finding financing for an expansion has been difficult.

MIBIZ FILE PHOTO: KATY BATDORFF

Instead, thousands of independently owned venues across the U.S. banded together to form the National Independent Venue Association (NIVA) and advocate for direct federal stimulus funding. Despite the months-long effort, legislation is stalled in Congress.

Scott Hammontree, partner and talent buyer at The Intersection in Grand Rapids, is a Michigan state captain for NIVA and has taken a lead role in the group’s congressional lobbying effort.

“It’s nothing I’ve ever done before,” Hammontree said. “It’s making (lawmakers) understand that if they don’t act, there’s going to be a big problem here, not just with venues but the trickle down to other businesses.”

The Intersection is no exception to the industry’s pain. Each of the venue’s 70-plus employees — including Hammontree — is on furlough.

Much of the venue’s merchandise has already sold. Taking on loans poses a risk, while grants aren’t enough to make a dent in rent and utilities.

The emails from bands and booking agents virtually halted, but signal a realistic return in late summer or early fall 2021.

“It’s bleak, just devastating,” Hammontree said. “I walk into my building every day, and it’s dark.”

Slow recovery Alysha Lach White, owner and founder of Little Space Studio — a Grand Rapids-based co-working space — is seeing a little light at the end of the tunnel, although financial obstacles remain. The space reopened for customers in early August after successfully launching digital memberships, but it’s having difficulty securing investors to complete renovations on one of the two floors it leases. The additional space would allow the company to create new revenue streams, including with multimedia studios.

“It’s been very interesting trying to raise money during COVID,” Lach White said. “If you’re not a unicorn tech company, people aren’t really interested in investing right now.”

As revenue slowly builds again, Lach White expressed optimism overall about co-working spaces as companies shift to work-from-home models. Employees may be “absolutely miserable” working from home, while she sees opportunity for short-term conference space rentals.

The hotel and lodging industry is also seeing activity recover, although occupancy remains about 50 percent of what it was a year ago.

Peter Beukema, CEO of Hudsonville-based Suburban Inns, said while leisure travel bounced back during the summer, the company is still being hit by a dearth of business travel, conferences and events.

Suburban Inns, which owns seven hotels in West Michigan, was in “survival mode” and “hanging on by our fingertips” in early May. Staffing reached a low of about 130 people, which has since rebounded to 400, Beukema said. However, he doesn’t expect the hotel industry to return to “normal 2019 levels” until 2022, “if not 2023.”

“We’re slowly re-engaging,” he said. “As we do that, we’re being responsible stewards of not only the business but our team members and their needs.”

‘Hopeful for the future’ Though the inability to work directly with customers at the start of the pandemic and questions over customers’ ability to spend posed challenges early on, Copemish-based solar panel manufacturer CBS Solar has added a new employee and as of September had “pulled even” with last year’s sales, said President and Sales Director Allan O’Shea.

“We are now buried” with accounts, O’Shea said. “I’ve got smiling faces on all the sales commission people and improved cash flow.”

CBS still has social distancing and maskwearing policies in place, which O’Shea doesn’t expect to waiver over the next year. That aspect of COVID-19 was eye-opening, he said: “We were way too sloppy with the flu and sanitizing and the way we were operating. That’ll never go away, I’m positive of that.”

Grand Rapids-based entrepreneur Jonathan Jelks — who’s part-owner in multiple ventures including an apparel line, a forthcoming downtown lounge and a spirits company — took the past six months to “refocus and further diversify our portfolio.” And it’s paying off, he said.

Motu Viget Spirits has “grown tremendously” and is now available in more than 50 Meijer stores in the region. Online sales for GR Apparel USA Co. have been “through the roof.” And he’s planning more investments in legalized cannabis.

“The economic downturn has just reminded me of how cutthroat entrepreneurship is,” Jelks said. “If you’re a real entrepreneur, you’ve had to prove it. In dealing with these obstacles and challenges, a lot of people have risen to the occasion, and that’s inspiring. I’m really hopeful for the future.”

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Virtual school puts strain on parents, local business owners

By KATE CARLSON | MiBiz kcarlson@mibiz.com GRAND RAPIDS — The owners of Brewery Vivant have gotten creative out of necessity when it comes to virtual schooling for their two children, sharing the responsibilities with two other families in their neighborhood.

Juggling the duties of owning and managing the Grand Rapids-based brewery without being able to send their children — who are in second and fourth grade — to school has been challenging and stressful, said Kris Spaulding, who co-owns Brewery Vivant with husband Spaulding Jason Spaulding.

Sharing the responsibility of guiding their children through virtual school with two other families has been helpful, but they still have to watch them more than usual compared to traditional school years, Spaulding said.

“It’s a lot of navigating calendars, and luckily I process that information pretty easily,” Spaulding said. “It’d be so hard if you didn’t naturally have that inclination.”

community mental Spaulding’s children health authority. attend Grand Rapids WANT TO TALK “When parents are Public Schools, which TO SOMEONE? put in a new situation is offering online-only Anyone experiencing when they don’t feel like classes for at least the mental illness or a they have the tools and first nine weeks of the substance use issue time to be successful, school year. The local can call Network 180 that puts a huge strain brewery owners are facAccess Center at on our mental health,” ing what many families 616-336-3909.

Myers said. “You wonder and fellow small busiif you’re the only person ness owners are dealing not able to handle it in isolation.” with right now: not having the option Myers is also a parent of two GRPS of sending their children to in-perstudents who started this school year son classes because of the COVID-19 virtually. pandemic.

“The only thing harder than put“Everyone’s mental capacity is ting pressure on yourself to be perreduced right now just by being in a fect at work then having the energy to pandemic,” Spaulding said. “Then it come home and be perfect at home is reduces even more when you have to trying to do those things at the same start juggling schedules and be prestime,” Myers said. ent for your children when that’s not a The pandemic has left many parrole any of us has played before. There ents isolated and away from their peer is a certain amount of stress attached groups where they are used to getting to that.” support, she added. Myers has used social media to seek out some of the ‘Huge strain’ on community she has been missing durmental health ing quarantine.

The added responsibility of home“Parents are supporting and norschooling or guiding children through malizing this experience for each virtual school can be especially hard other on social media,” she said. for parents who manage a small busi“That’s been helpful for me but I just ness, said Stephanie Myers, a child worry about those parents that don’t and family outpatient clinical manhave that support in person or online ager at Network180, Kent County’s right now.”

‘Critical issue’ Many schools’ switch to online-only classes is a “critical issue” for small business owners and employees facing the challenge of maintaining work responsibilities while homeschooling or guiding in-home virtual learning, said Small Business Association of Michigan President Brian Calley.

“This will be a real challenge for employees to figure out how to bring all these pieces together,” Calley said.

SBAM recently entered into an agreement with Sylvan Learning Inc. to provide SBAM members and employees discounts on direct school support and tutoring options that include in-person support. Sylvan Learning has more than 20 locations in Michigan with in-person and online tutoring options, as well as educational coaches for students.

“We are hopeful that more in-person options will be available in the future,” Calley said.

Indeed, virtual schooling is a challenge across small businesses — not just those in charge. The head brewer and head chef at Brewery Vivant also have children who are GRPS students, Spaulding said.

“It is definitely requiring some of our employees to look at whether the benefit of employment is worth the cost to their family of working through this virtual school scenario,” Spaulding said.

Employees have had to adjust their schedules to work around helping their children, but options are slim if employers don’t offer their workers that flexibility, Spaulding said.

Meanwhile, it’s increasingly important that workers have access to mental health resources.

“We’ve sought out our support network and have figured out how to make it manageable for us,” Spaulding said. “But the general concern in any business is the possibility of losing employees because of this.”

Many of Myers’ clients struggle with the lack of human contact or even just acknowledging that is something they need, she said.

“School is a respite for a lot of families, a breath of fresh air for kids and caregivers,” Myers said. “It’s hard when you don’t get that chance to catch your breath and re-energize.”

“The only thing harder than putting pressure on yourself to be perfect at work then having the energy to come home and be perfect at home is trying to do those things at the same time.”

— STEPHANIE MYERS Child and Family Outpatient Clinical Manager, Network180

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11

HEALTH BIZ SURPRISE BILLING Continued from page 1

As the final version of a four-bill package came together this month, the ERISA Industry Committee and three other national advocacy groups indicated their support. Each of the groups represents large employers that have operations in Michigan, Gelfand said.

The other national advocacy groups in support of the bills are the Washington, D.C.-based American Benefits Council Gelfand and National Alliance of He a l t h c a re Pu rc h a s e r Coalitions and the Pacific Business Group on Health in San Francisco.

The groups’ interest in Michigan stems from a stalemate in Congress on federal surprise billing legislation despite the bipartisan nature Pallone of the issue, Gelfand said.

“What’s playing out is that there has been a huge battle on the national level on this issue. In that sort of wake, a number of states have stepped up to the plate and those states have proxy battles playing out,” Gelfand said.

Even so, the ERISA Mukkamala Industry Committee still “would have cared about this no matter what” on the state level because some health plans are regulated at the state level and others at the federal level, “and it was never likely that Congress was going to solve the problem for both,” Gelfand said.

About half the states have enacted some form of surprise billing legislation “that range pretty significantly in how comprehensive they are,” he said.

The interest of the national groups in the state legislation has been somewhat unusual, said Dominick Pallone, executive director of the Michigan Association of Health Plans which represents HMOs and also supports the bills.

The groups’ interest illustrates the broad reach of the issue and how many people are affected by surprise medical billing, Pallone said.

“That causes, I think, some national players to get more engaged on a state-by-state basis when there’s a bigger topic such as this,” Pallone said.

“It’s definitely unique to the legislation.”

Widespread issue In a 2019 online survey of 1,000 registered voters by Families USA, more than four out of 10

SURPRISE BILLING POLL

The Washington, D.C.-based advocacy group Families USA last fall surveyed 1,000 registered voters to gauge opinions about surprise medical billings. The results found:

11%

said they couldn’t pay the bill

SEPTEMBER 14, 2020 / MiBiz

of people said they had received a surprise out-ofnetwork medical bill

>2/3>

said the surprise medical bill was difficult to pay

9 7% OF DEMOCRATS 74% OF REPUBLICANS 88% OF INDEPENDENTS

respondents said they had received a surprise medical bill for out-of-network care. Nearly 80 percent said they have difficulty paying the bill or were unable to pay.

Almost nine in 10 respondents to the Families USA survey said they would support legislation that protects patients from out-of-network surprise medical bills.

Surprise billing occurs when a patient receives care from a physician who does not contract with their health insurer and is considered an out-of-network provider. The situation can leave patients with large medical bills when they receive care, often unknowingly, from a provider who is not part of their health insurer’s network.

The legislation would require care providers to inform patients in advance of a scheduled procedure that their health insurer may not cover all of their medical services and that they can request care from an in-network provider. The notice must inform the patient that a non-participating provider must provide them “a good-faith estimate of the cost of the health care services to be provided,” according to the legislation.

In emergency situations, the out-of-network provider would have to accept payment that’s the median amount within the region that a health insurer pays an in-network provider, or accept 150 percent of what Medicare pays for a medical service, whichever is greater.

Patients would still have to pay their customary co-pays or deductible built into the health insurance coverage.

If enacted, the legislation would require the Michigan Department of Finance and Insurance Services (DFIS) to conduct an annual survey on surprise billing that includes the number of out-of-network billing complaints and the adequacy of insurers’ care networks in Michigan.

The legislation also would establish an appeals process within DFIS if a provider believes the

GROUP & CORPORATE SUBSCRIPTION PACKAGES 12

44%

Nearly nine out of 10 people supported legislation to protect patients from surprise medical billing and said it was important for Congress to address. By political affiliation, the support came from:

average amount that an insurer pays for a medical service within a region was miscalculated. An outof-network care provider also could seek arbitration if an insurer denies a claim seeking payment of more than 150 percent of the Medicare rate.

The Senate Committee on Insurance and Banking passed the bills Sept. 3 and sent them to the full Senate for consideration. If the Senate approves, the legislation would return to the state House, which this summer passed its version of surprise billing legislation and would need to take a concurrence vote on the Senate changes.

Billing disputes The issue of surprise billing has pitted physicians against health insurers and business groups, although in Michigan all sides have gone about tackling the issue from the perspective of removing patients from billing disputes over out-ofnetwork care.

Paying out-of-network providers a median of the Medicare market rate has also been a unique aspect of the surprise billing legislation in Michigan, Gelfand said. Legislation in other states such as Texas “have not used market-based approaches,” he said.

While opposing sides have battled over and still differ on details of the legislation, they approached the issue with the same goal in mind: To protect patients from surprise billing, according to Pallone.

“All sides have agreed on that point since day one,” Pallone said. “It’s a populist issue.

Everybody wants it solved.”

The Michigan bills that cleared the Senate committee had the backing of business groups such as the Michigan Manufacturers Association and the Economic Alliance of Michigan, plus the Michigan Association of Health Plans and the Michigan Nurses Association and AFSCME Council 25 labor unions.

Health care organizations — including the Michigan State Medical Society and the Michigan College of Emergency Physicians — continue to oppose the bills.

State and national organizations that represent ear, nose and throat specialists submitted comments to the Senate committee opposing the bills. The Michigan Otolaryngological Society and the American Academy of OtolaryngologyHead and Neck Surgery have argued that paying out-of-network providers 150 percent of the Medicare rate is inadequate.

The groups said in written testimony the legislation would “restrict the ability of providers to negotiate contracts with insurers in good faith. These disincentives could drive independent practitioners out of business and lead to a devaluation of health care services in general.”

In a poll released soon after the Senate committee vote, the Medical Society cited how 59 percent of the 600 registered voters surveyed in July said they believe health insurers should have the responsibility to pay the extra, unexpected costs of a surprise medical bill.

Medical Society President Dr. Bobby Mukkamala, a Flint-based otolaryngologist, said in a statement the legislation in its present form “shifts the burden of surprise billing onto the backs of physicians.” Survey results show that “voters overwhelmingly believe that insurance companies should be the ones paying the tab when patients receive a surprise, out-of-network bill,” Mukkamala said.

In a separate statement to MiBiz, Mukkamala said the Medical Society — which has argued that the legislation gives health insurers too much leverage in care network contract negotiations — would continue to push for changes that include adopting a “dispute resolution process that levels the playing field” and “implement a fair fee schedule.”

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S P E C I A L TO M I B I Z • S E P T E M B E R 14, 2 0 2 0

Q: HOW DO COMPANIES SURVIVE A RECESSION? A: Sustained revenue growth, talent retention, and a loyal consumer base Work towards all three by becoming

Companies that track their social, environmental, and economic impacts are 63%* more likely to survive a recession. They also have a greater revenue growth and higher employee satisfaction. *Abi Barnes, An Entrepreneur’s Guide to Certified B Corporations and Benefit Corporations, Yale Center for Business and the Environment, March 2017

THESE COMPANIES ARE ALREADY WORKING TOWARDS A STRONGER ECONOMY. 2 Fish Company 5 Lakes Energy Anderson’s Homestead Array of Engineers Art of the Table inc Athleta Atomic Object LLC Atypical Assistance Ball Park Floral & Gifts Bare All Clothing/ BAC Print Bazzani Building Company Bear Creek Organic Farm Better Way Designs Bold Endeavors Brewery Vivant Broad Leaf Local Beer CARNEVALE Cascade Engineering Catalyst Partners Cellar Door Preserves Center for Oral Surgery & Dental Implants City of Grand Rapids Clark Communications & Marketing Closed Loop Collection Computer Rescue 911 Congregation Ahavas Israel Country Winds Creamery Creston Brewery Database Sherpa Doorganics Double O Inc DWH E+L Salon

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John Ball Zoo JourniTech Corporation Kalsec KOKI Koops Inc Kuyper College Lacor Consultants Lean & Green Michigan Lindo Mexico Restaurante Mexicano Lions and Rabbits Little Space Studio Malamiah Juice Bar Menuha Studios Michigan Center for Holistic Medicine Michigan Economic Development Corporation (MEDC) Mindset Meals Mixed Staffing Modern Hardware Inc Motawi Tileworks Inc. My Lovely Muse New Holland Pub on 8th Next Door Photos Opportunity Resource Fund Pack Elephant Pleasant Hearts Pet Food Pantry Priority Health Public Thread Reink Media Group Revalue Riverview Group Root Functional Medicine San Chez Bistro Silver Lining Computer Services

Snoots in Cahoots Social Good Promotions Spectrum Health Stingray Advisory Group Supermercado Mexico Sustainable Research Group Swift Printing & Communications, Inc. Symposia Labs Sytsma Wealth Strategies Talisera The Art Of Dreams And Divination The Barre Code Grand Rapids The GFB The Image Shoppe The Meanwhile The Midwest Tech Project The Nines Gentleman’s Shoppe The Playful Preservationist The Pyramid Scheme The Rental Company The Sparrows Coffee The StorRoom The Sunday Dinner Group United Bank of Michigan Urban Pharm Valley City Electronic Recycling Value Added 616 Velo City Cycles Vine Ride Wine Tours Well House West Michigan Sustainable Business Forum Workit Health

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GOOD FOR MICHIGAN BUSINESSES Waste Management & Recycling - 1 Wholesale - 4 Accommodation & Food Service - 13 Transportation & Storage - 1

67 Minority or Women Owned

Administrative & Support services - 4 Agriculture, Forestry, & Fishing - 2

Retail - 26

Rental & Repair - 2 Real Estate, Design & Building - 4

Arts, Entertainment & Recreation - 6

131

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Education - 1 Energy - 1 Financial & Insurance Activities - 6

Human Health & Social Work - 6

Information, Communication, & Technology - 7

Manufactured Goods - 9

Professional & Technical Services - 26

4

NORTHERN MICHIGAN

115

WEST MICHIGAN

3

LANSING

9

EAST MICHIGAN

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GET INVOLVED Good For Michigan isn’t about perfection. It’s about celebrating the steps you take to improve. Whether you’re just beginning or well on your way, the journey to a regenerative economy starts with measuring and benchmarking your current impacts. The SDG Action Manager and the B Impact Assessment are free online tools that outline your current impacts, areas for growth and pathways to that growth. Find both at goodfor.org/get-started

WE ARE ABLE TO DO THIS WORK WITH THE SUPPORT OF THESE GENEROUS PARTNERS

2020 GOOD FOR MICHIGAN AWARDS Out of all the businesses that participate in Good For Michigan each year, these businesses are making the most positive impact. They are honored in four impact areas: Governance, Environment, Employees, and Community.

COMMUNITY

ENVIRONMENT

GOVERNANCE

EMPLOYEES

A company’s contribution to the economic and social well-being of the communities in which it operates, through impacts that foster diversity and inclusion , job creation, civic engagement and philanthropy, supply chain management, and more.

A company’s overall environmental stewardship, including how the company manages general environmental impacts as well as specific topics like climate, water use and sustainability, and impacts on land and life.

A company’s overall mission, ethics, accountability and transparency through p o l i c i e s a n d p ra c t i ce s t h a t f o s t e r integration of social and environmental g o a l s i n e m p l oye e s ’ p e r f o r m a n c e ev a l u a t i o n , i m p a c t r e p o r t i n g a n d transparency, stakeholder engagement, and more.

A company’s contribution to its employees’ financial, physical, professional, and social well-being through payment of a living wage, benefits, employee health and safety, professional development opportunities, and more.

AWARDEES

Photo by Corriveau Photography

Photo by Rich Photography

Photo by Corriveau Photography

Photo courtesy of Cherry Capital Foods

Urban Pharm Good For Community

Bare All Clothing Good For the Environment

Center for Oral Surgery and Dental Implants Good For Governance

Cherry Capital Foods Good For Employees

Urban Pharm is a property management company, real estate investment consultant, and real estate brokerage firm with a focus on community revitalization. They are Good For the Community because they dedicate their time and resources to local causes and non-profit organizations. They also support their community through partnerships with local businesses to source everything from supplies, accounting, maintenance, new talent, and web design.

Bare All clothing is a clothing company based in Detroit. They design and produce t-shirts, hoodies, joggers, sweatshirts, hats and more out of a small studio. They’re Good For the Environment because they source from local suppliers and reduce end-of-life waste. Since taking the assessment, they have shifted to even more environmentally-friendly products.

In pursuit of B Corp certification, The Center for Oral Surgery and Detail Implants is a dental practice in northeast Grand Rapids and Rockford. They are Good for Governance because not only have they formally drafted a mission statement that they walk out every day, they also specifically wrote a sustainable governance document, which they use to guide their practice and maintain company values as stakeholders buy in.

Cherry Capital Foods is a food distributor based out of Traverse City, Michigan. They are Good For Employees because, in addition to providing a robust benefits package and a competitive wage, they also offer food discount and reimbursement programs as well as paid maternity leave and anniversary incentives. They offer employee advancement opportunities and provide leadership and professional development.

HONORABLE MENTIONS

Photo by Corriveau Photography

Photo by Corriveau Photography

Photo courtesy of ReInk Media

Photo by Corriveau Photography

Michigan Center for Holistic Medicine Good For Community

Bold Socks Good For the Environment

ReInk Media Good For Governance

Innereactive Good For Employees

Michigan Center for Holistic Medicine (formerly Grand Rapids Natural Health) is an all-inclusive health and wellness center, offering a variety of integrative healthcare services as well as a holistic spa. They receive honorable mention for their community investment policies and inclusive work environment.

Bold Socks is a Grand Rapids-based social enterprise apparel company, specializing in socks. They receive honorable mention because they use renewed or recycled materials for all shipping and packaging and have committed to social responsibility and ethical manufacturing.

Reink Media Group is made up of stock traders, developers, designers, and writers based in Royal Oak. They receive honorable mention because they pride themselves on their work culture, transparency, and integrity and look forward to perusing B Corp Certification.

Innereactive is a marketing and design agency based in Grand Rapids. They receive honorable mention because they provide good benefits, paid time off for healthy work-life balance, and quality life wages.

As Michigan’s B Local, we create connections, increase the positive impact of our B CorpsTM , and raise awareness of the B EconomyTM . B Corps have been certified by B LabTM .

When you see this logo, you know you’re supporting a company that puts people and planet first.

MEET MICHIGAN’S B CORPS! THESE B CORPS ARE ACTIVE IN OUR B LOCAL COMMUNITY AND RIGHT IN OUR OWN BACK YARD. TO LEARN MORE ABOUT B CORPS AROUND THE WORLD, VISIT BCORPORATION.NET. These graphs reflect the combined average scores of 16 out of the 22 B Corps in Michigan. The scores are compared to the combined average scores of those who have taken the same B Impact Assessment, but have not certified.

Wholesale - 1

Accommodation & Food Service - 1

Waste Management & Recycling - 1

Administrative & Support services - 2

Retail - 2 Financial & Insurance Activities - 1

Real Estate, Design & Building - 2

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BUSINESSES

Human Health & Social Work - 1 Information, Communication, & Technology - 1

2019 Performance Professional & Technical Services - 4

Manufactured Goods - 5 Other Services - 1

35 30 25 20

9 Minority or Women Owned

15 10 5 0 Community

Environment BCORP

Governance AVERAGE BUSINESS

Workers

FOCUS: FAMILY BUSINESS

Fifth-generation Bradford Co. recognized for continued growth

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

T

he origins of the Bradford Co. date back to 1897, when W.J. Bradford started a paper company on the south side of Chicago that made candy boxes and popcorn bags.

Twenty-seven years later, the W.J. Bradford Paper Co. incorporated, moved to a larger location in Chicago and a new generation of the family began to manage the business.

In 1952, the company opened a plant in Holland, which in time became the home of what in the mid-1980s was renamed the Bradford Co. Today the company is led by a fourth generation of the Bradford family and includes a fifth generation as well.

In the 124 years since W.J. Bradford first formed the company, the business has grown to more than $100 million in sales and more than 750 employees at eight locations in the U.S. and Mexico, including facilities in Holland and Zeeland.

Bradford Co. in the last four years expanded at a compound annual growth rate of 13 percent — most of it organically — and added more than 450 jobs.

In recognition of that success, the company recently received the Association for Corporate Growth West Michigan’s 2020 Outstanding Growth Award, a recognition that President and CEO Tom Bradford calls an “extreme honor” and attributes to West Michigan’s deep acumen and legacy in manufacturing.

“We feel that we live in one of the most progressive manufacturing areas in the United States and where a lot of collaboration and innovation takes place,” he said.

An ACG West Michigan committee reviewed 20 nominations this year for the prestigious Outstanding Growth Award. Bradford Co. was the unanimous selection, said Joel Brandt, vice president of commercial lending at Macatawa Bank and chairman of ACG’s Outstanding Growth Award Committee.

“Bradford showcases its ability to adapt and reinvent itself throughout the decades of technological change,” Brandt said in an award announcement.

Bradford Co. produces industrial paperboard partitions, sewn textile packaging and custom reusable and returnable protective packaging, primarily for the automotive and appliance industries, plus some medical.

Bradford Co. in Holland won the Association for Corporate Growth West Michigan’s 2020 Outstanding Growth Award. Pictured are Bradford Co. President and CEO Tom Bradford with the ACG’s Jason Brinks of Oxford Financial Group (left) and Eric Fischer (right) from BDO. COURTESY PHOTO with the company.

His older brother, Jud, retired two years ago as chairman and senior vice president who led innovation. He worked for the company for 38 years. Tom’s son, Tommy, directs operational support and a nephew, Scott, works in program management as well.

Key to the Bradford Co.’s success has been a system Tom’s father — also known as J.T. — instituted many years ago when he led the business.

He brought in outside professional consultants and instituted programs and a view of “running the business as a business,” not an enterprise to support the family.

“Yes, I’m a shareholder, but I’m also an employee. More often than not I wear my hat as an employee and as an officer of the company to try to help develop the growth of the business

in that regard. I think we’ve done a pretty good job knowing what our roles are and running the business as a business,” Bradford said. “We kind of felt: If it was good for the business, it will ultimately be good for the family.”

Family members who were not associated with the company did not have an influence over the business, he said.

That practice was to ensure that if the “hit by a bus scenario” ever occurred, the next family member stepping into the leadership role was somebody who’s been through the “ups and downs,” knew industry cycles and “felt like they understand the business,” Bradford said. “It’s not in their best interests to be in a position that they can’t succeed in.”

Having the regular conversation and keeping the next generation in mind ensures continuity

and future leadership, Bradford said. He recalls when he was young his father talking with him about the business and sparking his interest in some day leading the company.

“When you’re in a family business, those discussions are taking place just about business itself and general questions. You’re piquing their curiosity, even when they’re in high school and such. When someone becomes a captain of a football team, did they become the captain at the time they were appointed? No. They were on a journey long before that,” Bradford said. “I always had a curiosity in the business and just would ask questions, ‘What do you do and what are some of the things that you’re doing?’

“In a lot of family businesses, you have that dialogue going on before people advance their education.”

Family affair In recognizing Bradford Co. with this year’s Outstanding Growth Award, judges at the ACG selected a family-run company that has grown as its leadership transitioned through generations.

“I’ve been a caretaker, so to speak, for 40 years,” said Tom Bradford, a fourth generation of the family who’s been president and CEO of the company since 1996.

Tom Bradford succeeded his father, Judson, who remained active in the company as a mentor for a few years after retiring.

Tom Bradford first joined the company in 1981 as a sales representative covering Southwestern Michigan, Indiana, Illinois and Wisconsin. He credits the family’s earlier generations with creating, growing and sustaining the business, and then passing it down to the next generation to take the company forward.

“Our generation four helped add things, but that’s only because of what generation one, two and three were able to start and leave opportunity for generation four to be in a position to also try to find opportunity as well,” said Bradford, who’s one of three family members presently Visit www.mibiz.com

MiBiz / SEPTEMBER 14, 2020

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FOCUS: FAMILY BUSINESS

Most family-owned businesses continue to lack formal succession plans

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

R

esults from a recent global survey show most family-owned businesses in West Michigan still lack a formal succession plan to transition the company to the next generation of

leadership.

Just 18 percent of the CEOs at familyowned businesses surveyed in West Michigan had a formal plan in place, according to the 2019 STEP Global Family Business Survey. The number is about the same as findings from an in-depth analysis of family owned-businesses six years ago by Grand Valley State University.

The findings — in both 2019 and 2014 — come despite an awareness by leaders at family-owned businesses of the need to have a plan and process to guide the company’s transition to the next generation or owner.

“It doesn’t matter who you’re asking, they always will tell you, ‘We know, we Gonzalez are absolutely certain that succession is key, it is absolutely important,’” said Ana Gonzalez, director of GVSU’s Family Owned Business Institute. “But when you ask them, ‘Do you have a succession plan?’ the answer mainly — around the world and overwhelmingly — is Sytsma ‘no.’”

Globally, the STEP survey convened by Babson College in Wellesley, Mass., of more than 1,800 family-owned businesses in 33 countries found that 70 percent lack a formal succession plan even as new CEOs from the Millennial generation are ready to take over and have the highest level of education.

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SEPTEMBER 14, 2020 / MiBiz

Planning ahead In many instances the survey responses came from leaders at family-owned businesses who themselves assumed their role without a formal plan or process.

“When I talk to current CEOs in families, they all tell me there wasn’t really a succession plan,” Gonzalez said, adding it was often an informal or assumed passing of the torch. But the process involves several components.

“For different reasons they tell you there’s no need for a succession plan, as if succession is the only decision,” Gonzalez said.

That process will improve the chances of a smooth transition, ensuring that a new leader is prepared to take over and equipped with skills to run the company. As well, a formal process laying out steps in a transition also will prepare the management team, employees and company for the new leader, Gonzalez said.

She and others say a transition that’s planned out should occur over a period of years and involve the younger generation working across multiple areas of the business to increasingly take on greater responsibilities over time.

That’s how it worked out at Ralph Moyle Inc., a transportation and warehousing company in Mattawan started in 1966. Passing on the company to a younger generation was always on the mind of founder Ralph Moyle, according to his son and present CFO, Jon Moyle.

Moyle and his brother — COO Mike Moyle — run the company day to day and are co-owners. Their father Ralph, at 88 years old, remains as CEO and today serves mostly as an advisor, Jon Moyle said.

Mike began working for the company in 1984 after graduating from high school and learned the business “from the ground up,” said Jon Moyle, who joined the company in 1991 after graduating from college intending to go into banking.

A recession making jobs scarce at the time altered the plan, leading Jon Moyle to start at the family company as a dispatcher. After a couple of years, he “realized the opportunity to control my own destiny a little more, and to make decisions that

Ralph Moyle Inc. Chief Financial Officer Jon Moyle on family business succession planning: “It’s never too early to start the process of thinking about who is going to take over next and how we best prepare them for a successful transition.” COURTESY PHOTO were important and impactful, and also to see some opportunity to help the business grow,” Moyle said.

The timing also worked as Ralph Moyle turned more of the day-to-day operations over to his sons as they were learning the business.

‘Never too early’ The Moyle brothers are in their early 50s and today are “trying to be more intentional” about the next steps and transitioning operational control of the company while replicating their knowledge and experience to others, Jon Moyle said.

He urges other families to keep in mind what happens to the business long term and to groom the next generation to eventually take over.

“It’s never too early to start the process of thinking about who is going to take over next and how we best prepare them for a successful transition,” Moyle said.

The lack of formality in succession planning for family-owned businesses stems from several reasons, Gonzalez said. Among them is a presumption that a certain son or daughter will someday run the business and they are already preparing them for that day, so a formal plan isn’t necessary.

“So, maybe they don’t have that formality, therefore they think there is no plan,” Gonzalez said.

There are also instances in which new leadership had to step in quickly when a parent who was leading the company became ill or even died suddenly.

When that happens, having a plan to guide decision-making, spell out the responsibilities and actions of surviving family members, and identify who takes over the leadership role can ease the transition at a difficult time and keep the company going.

“If you don’t have a succession plan by the time you’re 65, maybe you should come up with

it. You need to have something figured out,” Gonzalez said.

In the STEP Global Family Business Survey, more than half of responding CEOs said they plan to retire when they are 61 to 70 years old, and 27 percent planned to retire when they were older.

Nearly half of family business leaders globally and 60 percent in North America had an emergency plan in place for succession “in case of unexpected events,” according to the survey results.

Gonzalez urges families to at least talk about succession and create an explicit understanding about the next leader, even if it doesn’t lead to an actual formal plan or legal document to follow.

That conversation should begin years before the present family member who leads the company considers retiring, she said.

“Just start talking about it. You don’t have to come up with a document. You don’t have to seal it and stamp it or anything, but just start those conversations when it comes to succession,” Gonzalez said. “And don’t make assumptions that because you said things in the past — if you are the leader — that your family is all set if anything happens to you.”

Unpredictable events Tami Sytsma, a wealth adviser who owns Sytsma Wealth Strategies LLC in Grand Rapids, recalls the story of a recent client whose family owned a local manufacturer. The family member running the company died suddenly without a succession plan for the company or clear understanding about who would run it. No one in management had the ability to buy the company, and the surviving spouse ended up closing the business and liquidating the assets, Sytsma said.

While roughly 20 percent of family-owned businesses have a formal succession plan, Sytsma said some families are more proactive than others in planning future leadership.

“Most business owners maybe have a thought in mind on what they think should happen, but it’s not something that’s been planned out or spoken to the next generation,” said Sytsma, who’s active in the Family Business Alliance in Grand Rapids and the local chapter of the Exit Planning Institute, both of which emphasize succession planning.

That lack of planning often stems from the parent owners not wanting to let go “because it’s their baby,” or a belief that an heir can’t “sufficiently run the business,” she said.

Other times there’s simply a lack of a next generation in the family who wants to take it on, or business leaders “are just so busy trying to run the business they don’t think about it until they look up one day and say, ‘Oh, I guess I wasn’t thinking about this. Now what?’” Sytsma said.

Succession planning is a constant point Sytsma discusses with clients who own a business.

“The family business owners that get it right are the ones that talk with their children early on about what it means to own the business, what it looks like to work in the business, and what it looks like to run the business, and kind of have it in the works from day one so it’s not this drastic change. Leadership was always on the table for them,” Sytsma said, adding that unpredictable events can drastically shift the course of a business. “A business always needs to be prepared for: ‘What if I’m not there tomorrow?

Who’s going to take over?’”

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Don’t Wait to Begin Business Succession Planning

By Joel Farrar & Mindi Johnson A common and costly mistake when it comes to business succession planning is not starting the process early enough. By waiting too long, an owner runs the risk of not having the right people in place to run the business, as well as having much of the business’ value consumed by estate taxes.

Here’s the good news: With careful planning conducted alongside experienced business advisors, including legal counsel, the risks that befall many businesses during an ownership transfer can be avoided. Currently, estate tax exclusions are very favorable, enabling forward-looking owners to preserve the value of their businesses for future generations.

Interested in transferring ownership to a large group of employees or smaller subset of key managers? When there is no co-owner or family member to succeed you in your business, selling to members of your existing team can provide stability and an incentivized workforce with an ownership stake.

Planning a sale to a financial or strategic buyer?

Selling to a third-party, such as a private equity fund, may be a viable option, however, if you decide to go this route, be prepared for a rigorous process. A professional buyer will do a deep dive on the business and ask pointed questions about its financials and operations.

Refined systems and processes, clean financials and estate-planning tactics to acheive succession planning legal records, and clear protocols for tax and legal Now is the time to act. The upcoming election could compliance will make the business more attractive and objectives. drastically impact the availability of favorable succession fetch a higher valuation.

ESOP Transfer. An “Employee Stock Ownership planning strategies, some of which are currently scheduled to sunset in 2025. Business owners, Tactics to Enable Succession. Once your objectives Plan” or “ESOP” is one of the most effective tools for transferring ownership because it can create a market particularly those over 50, need a plan in place now so are clear, it’s time to execute your plan with the for the sale of a privately held company. It’s a strategy that they are ready to take advantage of potentially-last assistance of legal counsel and other appropriate that enables a business owner to sell his or her stock to minute opportunities after the election. advisors. The right strategy must be matched with the a separate legal (and tax exempt) entity and enables right method of execution. employees to acquire a beneficial ownership stake in First Steps in Business Succession Planning: the business. While the company continues operations Think about succession planning by exploring your Family Transfer. There is much more involved with it may make contributions to the ESOP, which is a objectives, identifying likely obstacles, and defining transferring your business to family members than qualified retirement plan, to provide tax-deferred your goals. The key to success is starting the planning a simple will or trust. There are numerous strategies retirement benefits for its employees. There are also tax process early and assembling a qualified team of that can save millions in estate and other taxes for the incentives for sales of certain stock to an ESOP that help legal and financial professionals who understand the right business and family. Many of these strategies common pitfalls and opportunities. depend on maximizing estate tax exclusions, which are owners minimize tax consequences. Overall, an ESOP scheduled to be cut in half in 2025 and may be reduced allows for a business’ culture, operations, and identity to remain intact while the owner transitions out of the Want to keep the business in your family? After or eliminated earlier depending on the outcome of business. identifying the family members who will play key roles the upcoming election. It is highly unlikely that the in your business in the future, it is crucial to ensure that tax environment will get any better than it is today. the company’s management team is ready to support Business owners should consider discussing with their Leveraged Management Buyout. A sale to a key manager or group of managers is a common strategy them and that the transfer can be accomplished without advisers strategies such as lifetime gifting, selling that banks and other lenders are often willing to finance. insurmountable estate and income tax liabilities. equity to an IDIT, employing a GRAT or generationKey issues to consider include the terms of any likely skipping trust, leveraging life insurance, and other Visit www.mibiz.com

financing, whether the current owner is willing to help with the financing, how to ensure that the buying managers “have skin in the game,” and whether the management team is ready to run the company after the owner retires.

Third-Party Transfer. It is common for owners to sell their business to a competitor or other strategic buyer when it is time to retire, or to a financial buyer such as a private equity or similar fund. We find that most businesses find themselves unprepared to sell, and that many sellers are surprised by the rigorous sales process and its challenges. Time spent now preparing the business for sale may very well help to ensure a prompt and successful sale at the best possible price.

With clear objectives, a sense of urgency, and experienced counsel in place, you can help ensure that your business, and your future, are secure.

www.fosterswift.com MiBiz / SEPTEMBER 14, 2020

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FOCUS: FAMILY BUSINESS

Experts see short, long term shifts with family business philanthropy

By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com

F

amily-owned businesses have been key contributors to West Michigan’s culture around charitable giving, but the COVID-19 pandemic and lingering questions around a seeming lack of succession planning may change the nature of that philanthropy in both the short and long term.

Michael Moody, Frey Foundation Chair for Family Philanthropy at Grand Valley State University, said it’s important to first distinguish family-owned businesses’ philanthropic might

by separating large and well-known family companies from “mom and pop” operations.

“In general, we’ve always known family businesses are essential as community citizens and philanthropic actors in a place like West Michigan,” he said. “There’s a tremendous culture of philanthropy here in general, but it’s very diverse in how they do that.”

The COVID-19 pandemic has highlighted nonprofits’ need for more flexible support from wealthy donors — such as for general operating funds rather than earmarked grants — but it also is changing the way charitable giving is defined, particularly for companies struggling during the pandemic.

One example is how family-owned businesses “tighten their belts” or dig into reserves to keep employees on the payroll.

“That’s not a purely business decision in all cases,” Moody said. “It’s also to be a good employer and make sure the family legacy continues to thrive. If you make that tough choice to do what’s right for employees even though in the short term it wouldn’t be the decision you make purely on business grounds, that to me has a shade of philanthropy to it. These things are mixed.”

Other ways the pandemic is “expanding our thinking” about business philanthropy include more flexible family leave policies and options

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for employees to work from home to be with school-age children.

“Any decision a family business makes is going to have some mix of philanthropic impulse and business savvy,” Moody said. “Some of the sacrifices family businesses are making are in the name of employees.”

The situation also cuts both ways, he added.

Consumers deciding to purchase goods from a local business, often family-owned, is “not just a business transaction, it’s a little philanthropic for them. It’s blurring those lines of what is philanthropy.”

Despite these blurring lines, the more immediate effect of the COVID-19-induced recession may simply limit family-owned businesses’ ability to give.

“We know family businesses are like any other actor: The No. 1 factor that determines where they give and how much will be based on their personal economic situation,” Moody said. “As family businesses struggle, they’re going to be cutting back on philanthropic activities.”

Diana Schad, director of the Grand Rapidsbased Family Business Alliance, said 95 percent of family-owned businesses “participate in some sort of philanthropy,” though many companies, particularly smaller and service-based businesses, have been hurt by the recession.

However, she agrees with Moody that philanthropy has taken on new meaning during the pandemic, whether it’s donating personal protection equipment, offering free food or services to frontline workers or donating computers or tablets to area school districts.

“I’m not hearing about things on a huge scale but rather these personal, Moody thoughtful gestures directly to the communities that family businesses are connected to,” Schad said.

Long-term uncertainty

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Beyond the near-term effects of the pandemic on charitaSchad ble giving, experts say longterm uncertainty remains as most family-owned businesses lack formal succession plans or are enticed to sell to outside companies or private equity-backed firms.

Moody said the answers to these long-term questions are filled with speculation.

“If one of the things that happens is more of them become subsidiaries of bigger corporations or get bought out, that’s going to have an effect on philanthropy,” he said. “We’ll see whether it diminishes it significantly.”

For fundraisers, Moody said the pandemic has underscored the need for “long-time supporters to step up. They need donors to be adaptive and flexible for shortening the time of their grants, converting to general operating grants and relaxing reporting requirements. There are a lot of things donors can do to make this easier on nonprofits.”

To Moody, the pandemic also has raised longterm questions about area family-owned businesses and their outsized role in the philanthropic sector. As the pandemic continues to showcase inequities in access to basic necessities and income, large donors will play a significant role in determining which nonprofits’ missions continue.

“This crisis is a big test for philanthropy, and everyone in the philanthropic field knows it,” Moody said, referring specifically to “justifiable criticism” that the pandemic will further “extend the concentration of power and resources in our society.”

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West Michigan CEO Summit to drive momentum as we adjust to the new normal

T

he Grand Rapids Chamber is thrilled to announce the return of the West Michigan CEO Summit on October 6, as a virtual, live-broadcast experience.

Now more than ever, CEOs are leaning on each other as we navigate a world that changes by the day, and on some days, even the hour.

At the Summit, regional CEOs will discuss how they are tackling the challenges of conducting business during a pandemic, supporting teams, as well as maintaining positive culture in a remote working environment. The event will also feature iconic and powerful leadership lessons to fuel and inspire fellow leaders to keep driving momentum as we continue to face the challenges of COVID-19.

Nate Koetje, CEO of Feyen Zylstra, will serve as the chair for the event, which will bring together some of the most influential entrepreneurs and executives leading West Michigan.

In its second year, the program is doubling down on engaging speakers and packing in even more impactful content. This event is one of the best investments you can make in your own professional and personal development and most importantly, you will connect with new friends and contacts.

The speakers are great. The production

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is great. The content is great. Register today to reserve your spot for an engaging morning of learning alongside over 500 changemakers driving West Michigan forward.

“The CEO Summit is an opportunity for leaders to learn from each other,” said Koetje. “We know a strong business community fuels a strong West Michigan. By learning from each other, we grow stronger together and create a more vibrant business climate with companies strategically positioned for success.”

“Leaders from all industries can learn something at the CEO Summit,” Koetje added.

West Michigan CEO Summit Speaker Lineup The West Michigan CEO Summit features a lineup of regional leaders covering topics including culture, mentorship, leadership, talent, strategic planning, industry trends, and how to deal with the ever-changing world. Panel discussions and keynote presentations will focus on actionable ideas for business growth and survival as we position West Michigan for success in the new reality.

“Each of our speakers will share their knowledge, tools and lessons learned on ways businesses can survive and thrive in

the new reality,” Koetje said.

“We are the right size, in the right region, with the right resources to build a West Michigan unlike any other region in the country. A West Michigan that is inclusive and entrepreneurial. A West Michigan whose leaders understand that business leaders are community leaders. The future of West Michigan is bright. Join us October 6 as we grow stronger together,” concluded Koetje.

The West Michigan CEO Summit agenda includes leadership lessons and insights from: • Meredith Bronk, CEO & President, Open System Technologies • Matt Paul, President & CEO of DTE Gas • Elsa Vos, Founder & Deisgner, Pieces of Me • Mike Dykstra, CEO, Zeeland Lumber • Rishi Makkar, Owner, Rishi’s International Beverages • Michael Davenport, President & CEO, Jireh Metals

• Mike Novakowski, President & CEO, Elzinga Volkers • Doug DeVos, Chairman, Amway Corporation • Brad Kessel, President & CEO, Independent Bank • Rick Baker, President & CEO, Grand Rapids Chamber • Nate Koetje, CEO, Feyen Zylstra More to be announced soon!

Attending the West Michigan CEO Summit Tickets for the West Michigan CEO Summit are available now. You can register at grandrapids.org/ceo.

MiBiz / SEPTEMBER 14, 2020

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FOOD BIZ

Food startups lean on farmers markets, pivot sales to adapt to pandemic

By JAYSON BUSSA | MiBiz jbussa@mibiz.com

S

teven Martinez-Thiel put together a detailed timeline that would transform his love and expertise of breakfast tacos and Tex-Mex fare into a new food business.

The native Texan who relocated to Grand Rapids planned a small-scale launch at a local farmers market in late winter followed by brief time off for his own wedding.

He planned to then return in the spring to focus on catering opportunities to generate the revenue and interest needed to reach his ultimate goal: a brick and mortar establishment.

COVID-19 had other plans.

“I spent the winter basically in development, doing recipe tests and just kind of forming ideas and figuring out what it would look like,” said Martinez-Thiel, a veteran of the restaurant industry and founder of Basalt. “We launched at the beginning of February. I sold my first taco either the first or second weekend in February, which was really exciting. We did the second season of the Fulton Street Farmers Market — their winter season there. It was a nice small launch, which was great because I didn’t really know what I was doing. It was a manageable size.”

The struggles that would ensue were not unique to Martinez-Thiel. While the pandemic-induced hardships of local restaurants, bars and hospitality busiSponsored by: nesses have been widely publicized, DAN VOS companies like Basalt — food businesses CONSTRUCTION still in the incubation phase — had to COMPANY grapple with problems all their own.

For freshly-minted Basalt, the first hurdle to clear was simply figuring out the appropriate time to open back up.

“I spent about two months just trying to figure out the right time to open and how to open responsibly and figure out if it was even responsible to return to work,” said Martinez-Thiel, who has two employees at his business. “We came back to the farmers market in the middle of May and I’ve been doing it since.”

FOOD BIZ

Farmers markets prove crucial For Martinez-Thiel, whose business operates in the Grand Rapids Downtown Market’s incubator kitchen, the farmers market was crucial for distributing his products and educating Midwesterners on a food that is overwhelmingly popular in Texas. In addition to his signature breakfast tacos, Martinez-Thiel also makes sandwiches and fresh salsa and is testing out other items at the Fulton Street Farmers Market.

Maintaining this touch point with potential clients was even more important to Basalt’s business model because catering opportunities — frequently used by young food businesses to gain exposure in the competitive food market — came to a grinding halt with social distancing guidelines all but wiping out gatherings and events.

Martinez-Thiel said he received some inquiries throughout the summer for fall weddings and other events, but of roughly a dozen

inquiries, he only furnished four quotes and ultimately booked just two engagements.

And since Basalt focuses on a hot product, even e-commerce wasn’t a viable avenue, leaving the farmers market as his primary hub.

Despite finding shelf space in health food stores spread across the country, including Harvest Health Foods locations throughout Grand Rapids, the success of Hannah Raycraft’s food business also hinges on local farmers markets.

Raycraft is founder of Spera Foods, which produces food with Tiger nut as the central ingredient. Tiger nut, which Raycraft personally encountered when she was studying abroad in Germany, is a super food that is growing in popularity and is not a nut, rather, the root of sedge grass. Spera Foods produces a range of products from Tiger nut flour to various granolas.

In years past, Spera Foods has leveraged multiple farmers markets — including the Holland Farmers Market — to get its products to the general public.

That some farmers markets have suspended operations over COVID-19 concerns and others have limited crowds has had a major effect on Spera Foods, Raycraft said, estimating that farmers market sales have plummeted around 75 percent. The product often benefits from face-to-face interaction and through samples to curious customers.

“There is the education piece because we have a more unique product,” Raycraft said. “It definitely helps having that time where they’re standing there trying a sample where you can talk to them about what it is. Now people don’t want to gather as much.”

Pivoting and other lifelines Both Martinez-Thiel and Raycraft say supply chain woes have been fairly limited throughout the pandemic.

“I think I’m small enough, and my menu is limited enough, where I was lucky to not face too much of that,” Martinez-Thiel said. “The things that I have a harder time sourcing are the speciality items like tempeh or tofu that I use for my vegan products.”

The central issue for these small businesses has become finding the best avenue in which to distribute.

Raycraft uses Amazon for digital sales fulfillment and distribution. She said sales were strong before the pandemic and then rose early during it before she had to restock. Raycraft said she has struggled to get Amazon to treat her small food business as a priority, underscored by the fact that she sent hundreds of bags of product in July that are still being processed at a fulfillment center.

This means her stock for online orders is still empty.

“People are ordering more online, now is a great time to be pushing that, but because Amazon is being so slow, I’m at a weird place where I’m thinking if I should start self-fulfilling again,” Raycraft said. “Shipping is so expensive if you’re not using a network.”

Meanwhile, grocery stores have proven bulletproof throughout the pandemic, making them a viable avenue for small food businesses that are able to get a foothold.

Basalt has recently established a relationship with the Bridge Street Market in Grand Rapids where it will stock some ready-to-eat

Breakfast tacos are a specialty at Grand Rapids food startup Basalt. COURTESY PHOTO items. Meanwhile, Martinez-Thiel is looking to cater private dinners and smaller events.

Pivoting and adjusting to needs Lucy Dilley is executive director of the Can-Do Kitchen in Kalamazoo, a nonprofit food business incubator providing commercial kitchen space and a 16-week program called the Can-Do Camp, which walks entrepreneurs step by step from idea to a fullfledged food business.

Like the blossoming food businesses it serves, the Can-Do Kitchen has also experienced minor disruption throughout the pandemic, seeing a few months where its commercial kitchen was limited to just one individual or household at a time.

After a renter would leave, the kitchen staff would come through to disinfect.

Dilley said activity at the kitchen slowed significantly throughout the pandemic, whether food businesses decided to take a breather or were forced to by the health climate.

“Some of them took a break — I wouldn’t say by choice because it was COVID, but took a break to say, ‘You know, I’m going to take a halt here and do some business planning and keep my family safe,’” Dilley said.

Pandemic or not, Dilley said making those first sales as a food business are always tough.

“I think securing those first customers is hard anyway and to do it now is especially hard,” she said. “Some of the really new people just haven’t found any traction yet.”

Others “were kind of forced to pivot,” which can take longer for newer companies, she added.

When looking on the other side of the pandemic, Dilley said she was both optimistic at the business owners’ ability to learn valuable lessons from these hardships while still being concerned for the more vulnerable members of the industry.

“I’m definitely worried, especially for entrepreneurs that were already experiencing lots of barriers — people of color, women, immigrant-owned businesses — (there are) just tons of walls up there anyway,” she said. “I’m concerned that they might have more trouble getting to the other side of this.

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v Sandy Ward and her late husband, Cedric developed a children’s program at Circle Theatre and supported many programs aimed at engaging people of color in community arts throughout their life together.

With the help of Grand Rapids Community Foundation, Sandy will create a scholarship fund after her passing to support students involved in theatre.

The fund will bear their names and honor Sandy and Cedric’s legacy, always and forever.

L E T U S H E L P YO U G E T S TA R T E D We’re here to help you understand your options and explore creative ways to leave your mark on the community and causes you love. Give us a call at 616.454.1751. grfoundation.org

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SEPTEMBER 14, 2020 / MiBiz

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NONPROFIT ORGANIZATIONS

‘Well-intentioned’ eviction moratoriums will likely cause homelessness bottleneck, nonprofit leaders say

By KATE CARLSON | MiBiz kcarlson@mibiz.com

the end of the year, said Dennis Van Kampen, president and CEO of Mel Trotter Ministries.

“T he rent t hat t hey haven’t paid isn’t going away, it’s just accruing, and most people will not be able to have severa l months of rent in their savings account,” Van Kampen said. “They should also start thinking about looking for a place that charges less in rent.”

H

ousing nonprofit leaders say the temporary halting of residential evictions issued recently by the U.S. Centers for Disease Control and Prevention is a positive short-term move, but could cause a large wave of evictions Van Kampen at the end of the year.

The CDC issued an Agency Order on Sept.

4 halting residential evictions for tenants in certain circumstances through Dec. 31 as the COVID-19 pandemic lingers on. To be covered under the order, a tenant must provide their landlord with a declaration attesting they meet the list of specific eligibility requirements Coordination under the CDC order. needed Eligibility requirements include making Even before COV ID-19, “best efforts” to get government assistance for Palmerlee homelessness was increasrent payments, having an income that does ing in Grand Rapids and around the country, not exceed $198,000 for joint filers or $99,000 Van Kampen said. The pandemic seems to for individuals, making an effort to pay partial have sped up the trend of more people being payments, and demonstrating no other housing displaced from their homes. options if someone is evicted.

Van Kampen said more collaboration is Michigan had a four-month statewide resneeded between nonprofits, landlords, busiidential eviction moratorium that ended July nesses, government leaders and tenants about 16 and was lengthened for Detroit residents additional solutions to the rise in housing insethrough Aug. 15. curity. The pandemic is shining a light on the In the weeks surrounding the moratorium’s root of the problem, which is a lack of affordlapse, Well House — a Grand Rapids-based able housing in the area, Van housing nonprofit— received Kampen said. many phone calls from individ“We need to use these months uals getting displaced from their we have to sit down with people homes, said Executive Director Sponsored by: from all concerned areas and John Glover.

GRAND RAPIDS say, ‘Is there more government Eviction moratoriums issued COMMUNITY assistance that could help? Are throughout the pandemic have FOUNDATION there things community leadbeen “well-intentioned,” but ers and businesses could do to they let people get behind on help?’” Van Kampen said. “A lot of people are their rent who may already struggle with financoncerned about this but I’m not seeing a coorcial discipline, Glover said. dinated effort.”

“The additional calls we’ve gotten seemed The CDC eviction order puts landlords to reflect that,” he said. “It was a well-intended between a rock and a hard place, Van Kampen policy that was not put in place properly.” added.

Renters planning on being covered under the “Most landlords we work with want to new CDC order should still save as much money keep their properties full and people renting as possible to avoid potential homelessness at

NONPROFIT SECTOR NEWS

Dennis Van Kampen, president and CEO of Mel Trotter Ministries in Grand Rapids, says more collaboration is needed among nonprofits, business groups, landlords and government officials to stop the trend of rising homelessness, particularly during the pandemic. COURTESY PHOTO them,” he said. “Now they have the challenge of not having income coming in, so they can’t pay their bills but they also don’t want to evict people.”

Landlords are still able to charge late fees and fines for late rent that the tenant will be required to pay after the moratorium lifts, according to the CDC order.

Year-end concerns Emergency housing agencies in Grand Rapids like Mel Trotter and Degage Ministries are operating under limited capacity with social distancing guidelines for COVID-19. Many residents experiencing homelessness have been staying outside because they feel safer than inside a shelter because of the pandemic.

However, Van Kampen is concerned about a significant increase in the number of people experiencing homelessness in harsh weather

at the end of the year.

Degage Ministries Executive Director Marge Palmerlee said the organization’s $6.7 million expansion project into a neighboring building at 139 Sheldon Blvd. SE in Grand Rapids will eventually help with the anticipated increase in the number of people who will need emergency shelter next year.

Construction on Degage’s second building will likely take about nine months, but the project can be phased while expanding services before the entire building is fully operational, Palmerlee said.

Degage’s overnight shelter serves women and children, but it also provides laundry, meals, showers and other services to the entire community in need, Palmerlee said.

“During a stressful time like this, anxieties rise,” Palmerlee said, “but we’re trying to always assure people we’ll be here to walk alongside them.”

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Q&A

IN THE NEWS

Tasha Blackmon

M&A

President and CEO, Cherry Health The Grand Rapids Area Chamber of Commerce’s annual Athena Award was created in 1989 to recognize professional excellence, community service and assistance to women for helping attain professional leadership skills. This year’s winner is Tasha Blackmon, who has served three years as president and CEO of Grand Rapids-based Cherry Health, the largest Federally Qualified Health Center in Michigan that provides care in underserved areas.

Blackmon, who’s been with Cherry Health for nearly 16 years and started as a site manager at the Westside Health Center, spoke with MiBiz about managing through the COVID-19 pandemic — a period she calls “a time for decisive leadership.”

When leading an organization through a crisis, what’s the first thing you need to keep in mind?

I walk into every situation knowing that it can be solved. The solution is either within you, above you or around you. I always approach crisis situations as if there is a solution. You just have to figure out how to get to that solution. I’m a spiritual person, so I often will pray for guidance.

But I also have a team around me and they are amazing, so I don’t have to feel that I’m alone in dealing with a crisis.

What was the moment in the early days of the pandemic that told you this was going to become a major crisis lasting for a while?

It was really the ears to the ground in Detroit. I started to feel it more with my colleagues in the Detroit area (saying) that people were dying. Every day there were multiple people who were in the hospital or who had died. The third week of March was when I realized ‘this is significant.’ I felt it before the governor’s order just because of what was happening in Detroit. And we have sites in Detroit.

How do you describe your leadership style?

It is a hybrid approach. There is some servant leadership in there, there’s some transformational leadership in there, and I would say some situational leadership. One of the things I am thankful for is being able to really adjust my leadership to the circumstance I’m dealing with in the moment. That requires a lot of patience, a lot of creativity, and it requires having people around you that may not always agree, but they understand why decisions are being made.

How do you as a leader get people to understand even if they disagree with a decision?

There are times I say to my staff, ‘Just because you don’t agree doesn’t mean you don’t understand.’ I work toward them gaining understanding even if they don’t agree.

You first start with the big picture. You talk about where the mission alignment is, and look at that first. Then you talk from the standpoint: ‘What is our obligation as a FQHC? What is our obligation as a community partner?’ Then you start to look at, ‘How does this impact our staff and our patients?’ You kind of go through this rubric that’s in your head and you work your way down. There are times you get to the end and your staff may say, ‘You know, I do understand but I don’t agree.’ My next step is to ask them, ‘If you were making this decision, how would you have made the decision and why?’ I want to understand their thought process. That’s where we’re able to really get to the root of where their issue is.

How has the pandemic changed you as a leader? What have you learned?

I’ve learned so much. I’ve learned the power of resilience. Just when you think your team has had enough and that you can’t push them any more — we worked steady 15- or 17-hour days, and it was consistent for months — you see the sheer will of your team, and I think my team is so courageous, too.

At one point we didn’t know what was going to happen if you tested positive for COVID-19.

We didn’t know if it was an immediate death sentence for most people or what, but we had staff that were like, ‘I joined Cherry Health because I wanted to make sure the underserved population of our community had access to quality care and this is why I’m here.’ They came to work courageous. I’ve always known our staff was really passionate, but just the level of courage that they displayed during this time — it makes me misty just thinking about it. They were risking their own lives and the lives of their family to come to work every day. Some of them were probably fearful on some level, but their courage outweighed their fear. They’re cemented as heroes in my mind.

What will stay with you from that?

I’ve learned that when courage outweighs fear, anything is possible because of some of the things they pulled off. We stood up telehealth in days and shifted our whole business model overnight. It doesn’t mean that the fear isn’t there because you have to acknowledge the way you really feel and fear is a real feeling, but our staff just showed up.

Interview conducted and condensed by Mark Sanchez.

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SEPTEMBER 14, 2020 / MiBiz

COURTESY PHOTO

n Grand Rapids-based BlueWater Partners served as exclusive financial advisor to Douglas Corp. of Minneapolis, Minn. in its recent sale to Aludec USA, Inc. Douglas — which designs and manufactures product identification and user interface products for the automotive, truck, marine, agriculture and construction industries — was acquired by the Spanish company, which designs and manufactures exterior and interior automotive parts. Terms of the deal were not disclosed. n Greenville-based Castle Brewing Co. has been acquired by a new team hoping to bring brewing experience and possibly a new concept to the Montcalm County brewpub. Brent Slagell and Jim Zawacki — part of the ownership group of Lowellbased Big Boiler Brewing — this month acquired Castle Brewing in Greenville under the entity Hophog LLC. Terms of the deal were undisclosed. n Pro-Vision Video Systems, a West Michigan producer of body-worn cameras and rear vision and video recording systems used worldwide, announced a strategic acquisition. Pro-Vision, owned by Boston-based private equity firm JMC Capital Partners, has acquired Zone Defense LLC, headquartered in St. Petersburg, Fla. Aligning with Pro-Vision’s products, Zone Defense develops, engineers and manufactures advanced vision systems for automotive and fleet industries. n Grand Rapids-based medical and biotechnology manufacturing firm Medbio LLC has acquired a western New York medical device manufacturer.

Medbio announced the acquisition of Polymer Conversions Inc., which specializes in contract medical device manufacturing involving thermoplastic injection molding. Company officials say Polymer Conversions is “highly complementary” to Medbio’s platform and expands the company’s “geographic presence.” Terms of the deal were undisclosed.

REAL ESTATE AND DEVELOPMENT

n Genesis Non-Profit Housing Corp. is planning a multi-family housing development with 38 apartment units earmarked for affordable housing on Grand Rapids’ West Side. Later this month the Grand Rapids City Planning Commission will consider a rezoning request for the properties at 851 Leonard St. NW and 850 and 860 Courtney St. NW. The land planned for the Leonard Apartments development falls in two different zone districts — traditional business area and low density residential — with an irregular lot configuration. n An Indianapolis-based developer is planning a 320-unit luxury apartment complex along East Beltline Avenue northeast of Grand Rapids. The developer — Watermark Residential, an affiliate of Thompson Thrift Development Inc. — has acquired about 24 acres for The Grove by Watermark project at 3590 East Beltline Ave. in Grand Rapids Township. The expected completion date for the housing project is August 2022.

HEALTH CARE

n Gateway Pediatric Therapy LLC opened its ninth Michigan location and first in West Michigan on 68th Street SW in Kentwood. Led by Lisa Bingham, the clinic offers applied behavior analysis for children with autism. Gateway Pediatric Therapy plans to expand further in Michigan next year.

Alongside its Kentwood location, Gateway recently established locations in Shiawassee and in Georgia. n Bronson Healthcare Group plans to develop a new inpatient psychiatric center in Battle Creek by 2022 that would more than double its licensed inpatient beds for behavioral health care. The Kalamazoo health system has begun planning for an 83-bed psychiatric center on a 40-acre site at Glenn Cross Road and M-66 owned by Bronson Battle Creek Hospital. Now in its early planning stages, the development would replace Bronson Battle Creek’s existing Fieldstone Center psychiatric facility that has 39 licensed psychiatric inpatient beds.

MANUFACTURING

n Reduced demand brought on by the COVID-19 pandemic has led to a significant workforce reduction at Steelcase Inc. The Grand Rapids-based furniture maker announced measures to reduce the cost structure for the company’s corporate office functions and Americas segment. A combination of early retirements and both voluntary and involuntary separations shed the company of 300 salaried employees, or 8 percent of Steelcase’s salaried workforce in the Americas and corporate front office. Another 65 salaried employees have shifted to a part-time role within the company while others have accepted a temporary layoff for three to six months. Steelcase also accepted early retirements of roughly 160 hourly employees within the company. n Over the remaining months of 2020, worldwide office furniture manufacturer Haworth Inc. will undergo a major transition within its financial leadership team. Chief Financial Officer John Mooney announced over the summer that he would be retiring at the end of the year. Haworth recently announced that it appointed Scott Poulton to succeed Mooney as CFO. Mooney’s retirement will conclude his 15 years of financial leadership with the company.

BANKING

n First National Bank of Michigan plans to open a new branch office in Lansing. The office would become the sixth branch for the Kalamazoo-based FNB, which opened a loan office in Lansing more than three years ago. The loan office will move into the new downtown branch at Michigan Avenue and South Washington Square in a building that was built in 1918 and originally was the home of Lansing State Savings Bank. FNB plans to move into the building in October after completing renovations. n Huntington Bancshares Inc. has pledged to lend and invest $5 billion in Michigan over five years to support financial opportunities for businesses, consumers and community organizations. While details of the commitment and specific initiatives will take shape in the coming months, the pledge will involve increased investments in capital access for small businesses with “a special emphasis on those owned by minorities, women and veterans,” as well as affordable housing and home ownership, and community lending and investment, according to an announcement from the Columbus, Ohio-based Huntington.

NONPROFIT

n Kent County and the Heart of West Michigan United Way issued more than $2.3 million in pandemic relief grants to area nonprofits while more is on the way. Officials on Sept. 8 announced dozens of first-round recipients of funding from the Kent County Non-Profit Organization COVID-19 Grant Fund. The lengthy list of recipients was populated on Heart of West Michigan United Way’s website. n The Steelcase Foundation is launching a search for a new leader after president Julie Ridenour announced plans to retire at the end of the year. The foundation — which is independent of Steelcase Inc. and was established in 1951 to support charitable, scientific, literary and educational causes in the community — announced Ridenour would conclude her tenure as president effective Dec. 31. She has held the position since 2012.

BOOZE

n A new partnership will bring whiskey from Three Oaks-based Journeyman Distillery LLC to all 50 states. The craft distillery announced recently that it established a collaborative agreement with 375 Park Avenue Spirits, an independent subsidiary and fully integrated sales firm of New Orleans-based Sazerac Company, one of the leading spirits providers in the U.S. Journeyman currently distributes to 19 different states, but the company announced that the mammoth distribution power of 375 Park Avenue Spirits will bring its extensive selection of whiskey throughout the country.

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