Small Manufacturers Retooling

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) Energy Unit offers the Small Manufacturers Retooling grant program to help small businesses and manufacturers in Michigan implement energy efficiency, energy waste reduction, and retooling projects. The program aims to deliver meaningful energy and cost savings, improve business resiliency by reducing energy input per unit produced, accelerate the transition to decarbonization, and support the broader goals of the MI Healthy Climate Plan.

To be eligible, applicants must be small manufacturing businesses physically located in Michigan with 500 or fewer employees worldwide and in good standing with the State of Michigan. Non-profit organizations operating as small manufacturers meeting these size limits are also eligible, while cannabis-related operations and municipalities are ineligible. Priority consideration is given to manufacturers with significantly fewer than 500 employees, entities implementing recommendations from recognized energy audits (such as RESTART or the Michigan State University Industrial Assessment Center), projects with significant material, water, labor, or cost savings, facilities located in the Upper Peninsula or economically challenged industrial sectors, and veteran-, minority-, or women-owned businesses. Applicants must possess an active SAM.gov Unique Entity Identifier (UEI) and be registered in the SIGMA Vendor Self Service (VSS) system.

Eligible projects must focus on manufacturing process efficiency improvements, energy waste reduction, or commercialized renewable energy technologies that reduce onsite energy consumption at occupied facilities with long-range plans of continued use. Ineligible activities include projects deemed scientifically unsound, demonstration of non-commercially available technologies, projects conducted outside Michigan, projects requiring a NEPA environmental assessment without prior U.S. Department of Energy approval, and infrastructure projects over $250,000 in total cost that fail to meet Build America, Buy America Act (BABA) requirements. Disallowed expenses include sick pay, vacation time, holiday pay, payroll taxes, vehicles, computers, real estate/land/buildings, building structural repairs, dues, and tuition reimbursement.

Applications are accepted on an ongoing, rolling basis until all available program funds have been allocated. Applicants must submit their proposals through the EGLE Online Application platform accompanied by an Approved Budget Form with Budget Narrative, detailed project timeline, applicant and partner organizational charts, recent outside audit or financial statements (such as an A-133 single audit if federal funding thresholds are met), and a Certificate of Indirect Costs if indirect rates (capped at 15%) are claimed. Where applicable, applicants must also submit State Historic Preservation Office (SHPO) Section 106 review forms, NEPA review forms, or BABA waiver requests. Selected awardees must incur all expenses before August 31, 2027, participate in an EGLE onsite visit, and submit final closeout reports by September 30, 2027.