Michigan House Bill HB4998

Michigan 2025-2026 Regular Session

• Introduced: 9/18/25
• Refer: 9/18/25

Caption

Appropriations: supplemental; funding for certain nonprofit organizations; provide for. TIE BAR WITH: HB 4999'25

Impact

The bill will significantly impact nonprofit organizations in Michigan, particularly those with annual revenues below $1,000,000. By allowing for immediate financial relief through micro bridge loans, HB 4998 aims to enhance the sustainability and operational capacity of nonprofits that deliver essential community services, including health, education, and cultural programs. In addition to financial assistance, the proposed legislation emphasizes technical support that encompasses various areas such as nonprofit management, fundraising strategies, and compliance with state and federal regulations.

Summary

House Bill 4998 is a legislative initiative aimed at amending the Michigan Strategic Fund Act to establish a framework for the Michigan Nonprofit Development Center Program. This program is focused on providing financial assistance and technical support to qualifying nonprofit entities in Michigan. The bill proposes the introduction of interest-free micro bridge loans of up to $25,000 for qualifying nonprofits that have secured government funding but are awaiting disbursement. This measure is intended to alleviate cash flow issues faced by these organizations while they wait for grant payments.

Contention

Notable points of contention surrounding HB 4998 may center on the implications of the funding sources for the proposed loans and the potential for increased bureaucracy in administering the program. Critics may argue about the sustainability of the fund that will provide these loans, especially concerning how it will be financed and whether it could lead to over-reliance on state support among nonprofits. Furthermore, questions around the long-term impact of such financial assistance on the independence and operational dynamics of these organizations may arise, challenging the balance between state support and nonprofit self-sufficiency.