Michigan groups outline $1 million Center for Social Enterprise Development to boost employment for people with disabilities

The Appropriations Subcommittee on Labor and Economic Opportunity heard testimony from Encompass Michigan and the Small Business Association of Michigan on a state-funded Center for Social Enterprise Development intended to help create sustainable businesses that employ people with disabilities and others facing barriers to work.

The Center, funded by a $1 million appropriation in last year’s state budget, will be administered through the SBAM Foundation, a 501(c)(3), and run as a partnership between SBAM and Encompass Michigan, presenters told the subcommittee. Todd Culver, president and CEO of Encompass Michigan, and Brian Calley of the Small Business Association of Michigan described the center’s planned services and eligibility rules for grants.

The center will provide training and technical assistance, peer support and grant funds to help existing nonprofits or for‑profit enterprises develop or scale social enterprises that have employment as a primary purpose. Culver said the appropriation will be used for grants and for capacity building: “Last year, the state made an allocation of a million dollars,” and the presenters said they were finalizing contracting with the state to distribute the funds. Eligible applicants will be required to participate in programs offered by the Center for Social Enterprise Development before receiving grant funds.

Presenters told senators the center will prioritize projects that demonstrate a commitment to workforce development, community development and sustainability, with particular emphasis on recruiting, training and employing individuals with disabilities as well as returning citizens and other workers facing barriers. The center’s supports will include legal and business-modeling assistance, feasibility and market analysis, branding and marketing, and best practices in disability hiring. The presenters said the model aims to make social enterprises financially self‑sufficient so they rely less on philanthropic or government fee-for-service funding.

Brian Calley of the Small Business Association of Michigan described the center as an effort to connect private-sector employers who need workers with a talent pool that is often overlooked and to dispel misconceptions about the cost and difficulty of workplace accommodations. He said the center will work with both nonprofit and for‑profit entities and expects to serve “25 or more organizations” in initial cohorts. Frank Kelly, also representing SBAM during the hearing, said “the dollars land with the SBAM Foundation” and that the foundation will serve as the fiscal administrator for the appropriation.

Senator Huizenga asked whether the appropriation goes to a nonprofit vehicle or directly to one of the partner organizations; presenters replied that the SBAM Foundation will be the fiscal recipient and that Encompass Michigan will be an operational partner. Presenters also described a mixed sustainability plan that relies on paid technical assistance and services after the center establishes a track record, continued organizational support from the associations, and some philanthropic contributions during the early years.

Subcommittee members voiced support for the concept and its goal of connecting people with disabilities and other jobseekers to employment opportunities. The presenters said the project intends to create an advisory board of private-sector and nonprofit representatives, to administer direct grants to eligible organizations for training and technical assistance, and to foster a peer network to share best practices and mentorship.

Votes at a glance - Motion to excuse absent members — moved by Senator McCann; approved by unanimous consent (no objection). Notes: procedural motion recorded in the hearing. - Motion to approve minutes of the subcommittee meeting on 03/05/2025 — moved by Senator Bumstead; approved by unanimous consent (no objection).

The subcommittee took no further formal action on the center beyond hearing testimony and confirming the presenters’ description of how the appropriation will be administered and used. Committee members asked presenters to return with updates after contracting with the state and initial grant awards are made.