Legislative Analysis
Phone: (517) 373-8080
CENTER FOR MICROENTERPRISE DEVELOPMENT
http://www.house.mi.gov/hfa
House Bill 5463 as introduced
Analysis available at
Sponsor: Rep. Alabas A. Farhat http://www.legislature.mi.gov
Committee: Economic Development and Small Business
Revised 12-3-24
SUMMARY:
House Bill 5463 would add a new Chapter 7A to the Michigan Strategic Fund Act to create a
“Center for Microenterprise Development” that would be operated by the Michigan Strategic
Fund.
The Center for Microenterprise Development would be authorized to seek new federal and
private sources of funding for the center, assist microenterprise development organizations,
and support microenterprise businesses.
Microenterprise development organization would mean a community-based,
nonprofit organization that is tax-exempt under section 501(c)(3) of the federal Internal
Revenue Code and that has a plan and the demonstrated or potential capacity to provide
business development training, technical assistance, or business loans to
microenterprise businesses.
Microenterprise business would mean a new or existing business headquartered in
Michigan that has 10 or fewer employees, including startups, home-based businesses,
and self-employed individuals.
Proposed MCL 125.2079a and 125.2079b
BACKGROUND:
House Bill 5463 is similar to HB 4060 of the 2021-22 legislative session and HB 5199 of the
2019-20 session.
FISCAL IMPACT:
House Bill 5463 would likely increase costs for the Michigan Strategic Fund/Michigan
Economic Development Corporation by an indeterminate amount. The MEDC currently
projects that additional resources would be necessary to provide staffing and programming for
the Center for Microenterprise Development, though the level of resources required is currently
indeterminate.
Legislative Analyst: Holly Kuhn
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
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Statutes affected:
Substitute (H-3): 125.2004, 125.2001, 125.2094
House Introduced Bill: 125.2001, 125.2094