Small Manufacturers Retooling

The Small Manufacturers Retooling program, administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) Energy Unit, provides matching grants to small manufacturers across Michigan to accelerate the implementation of energy efficiency, energy waste reduction, and retooling activities. The program aims to deliver meaningful energy and cost savings, enhance the resiliency of Michigan small manufacturing facilities by reducing energy input per unit produced, and support the decarbonization goals outlined in the MI Healthy Climate Plan.

Eligible applicants are small manufacturing businesses physically located in Michigan with 500 or fewer employees worldwide in good standing with the State of Michigan, including non-profit entities operating small manufacturing operations. Municipalities and cannabis-related facilities are strictly ineligible. Applicants must hold an active SAM.gov Unique Entity Identifier (UEI) and be registered in the SIGMA Vendor Self Service system. Priority consideration is given to manufacturers with significantly fewer than 500 employees, businesses implementing audit recommendations from recognized providers such as RESTART or the Michigan State University Industrial Assessment Center, businesses owned by veterans, minorities, or women, and projects supporting economically challenged industrial sectors or Upper Peninsula energy priorities.

Eligible projects must address process energy efficiency, energy waste reduction, and economic growth within occupied facilities with long-range plans of continued use. Ineligible activities include demonstration of non-commercially available equipment, unapproved NEPA environmental assessments, non-U.S. iron/steel/construction materials on projects subject to the Build America, Buy America Act, projects outside Michigan, and general repairs to buildings or structures. Disallowed budget costs include sick/holiday pay, payroll taxes, vehicles, computers, land, real property, dues, and car rentals. Expenses incurred prior to the execution of a formal grant agreement are strictly ineligible for reimbursement.

Applications are accepted on a rolling basis until all available program funds are allocated. Applicants must submit the online application form accompanied by the Approved Budget Form and Narrative, project timeline, applicant and partner organizational charts, most recent financial statements or A-133 single audit, Certificate of Indirect Costs (if applicable), and any required environmental compliance documentation (such as SHPO Section 106 or NEPA forms). Submitted proposals are scored on project scope and objectives, feasibility, anticipated impact, team qualifications, and alignment with state program priorities.