Michigan News And Capitol Report, Week Ending Friday, September 4th, 2026

SBAM Flips In Competitive SD-12, Backs Hertel

The Small Business Association of Michigan's political arm is backing Democratic Sen. Kevin Hertel (D-St. Clair Shores) in one of this fall's competitive state Senate races, four years after endorsing the Republican who nearly defeated him for the same seat.

Hertel was the only Democrat among six Senate candidates endorsed today by SBAM's Small Biz PAC. The other five were Republicans.

The endorsement is particularly notable in the 12th Senate District, where Hertel eked out a 404-vote victory over former Republican Rep. Pamela Hornberger in 2022.

SBAM endorsed Hornberger in that race, calling the 12th one of the competitive Senate seats where it was putting its support behind the Republican candidate.

Four years later, the organization is on Hertel's side.

He's facing Republican John Goldwater in November in a district that President Donald Trump carried by about 7 percentage points in 2024, according to MultiState's district election analysis.

The race could factor into control of the Senate, where Democrats currently hold a 20-18 majority and all 38 seats are up for election this year.

SBAM President and CEO Brian Calley said the organization's endorsements are aimed at candidates who understand what it takes to operate and grow a small business.

“This November, small business owners across the state are looking for candidates who understand what it takes to start, grow and sustain a small business, and who will endeavor to make policy decisions with them in mind,” Calley said.

Hertel was one of only three Democrats among the 14 candidates included in SBAM's latest round of endorsements.

The other Democrats are Regina Ross in the 4th House District and Khristian Silvis in the 84th.

Republicans receiving House endorsements were Laura Perry in the 31st, Macomb County Commissioner Sylvia Grot in the 59th, Rep. Brian BeGole (R-Perry) in the 71st, Brandon STRONG in the 78th, Jaxon Deur in the 101st and Rep. Greg Markkanen (R-Hancock) in the 110th.

Along with Hertel, SBAM's Senate endorsements went to Republicans Andrew Beeler in the 25th, John Wetzel in the 31st, Mason County Sheriff Kim Cole in the 32nd, Rep. Gina Johnson in the 33rd and Rep. Dave Prestin (R-Cedar River) in the 38th.

SBAM describes its Small Biz PAC as intentionally bipartisan and says endorsements are based on candidate questionnaires, voting records, recommendations from members and the viability of candidates.

Still, the PAC's Senate endorsements this cycle have tilted heavily Republican.

Its first round in June included 10 Senate candidates, all Republicans. SBAM's current endorsement list does include Democratic Rep. Matt Koleszar in the open 5th Senate District, making Hertel one of relatively few Democratic Senate candidates to receive the organization's backing this year.

SBAM says its PAC invested more than $205,000 in candidates during the last election cycle and 82% of its endorsed candidates ultimately won.

Benson Floats Breaking Up MEDC, Creating Small Business Agency

(FLINT)— Democratic gubernatorial nominee Jocelyn Benson said the Michigan Economic Development Corporation (MEDC) may need to be “reformed, if not changed or broken up,” as she considers creating a separate entity focused specifically on growing small and micro businesses.

She said the state's current approach to economic development is too broad to adequately address the different needs of smaller businesses.

“It’s very clear that a one-size-fits-all policy for economic development is not actually going to develop our economy,” Benson said, floating a “multifaceted approach” that could include multiple agencies.

Benson did not immediately say she has a proposal forthcoming, but said it’s something she wants to study by looking at what other states are doing and talking with business owners before developing a proposal.

The comments came during a small business roundtable in Flint, where Benson said she wants Michigan to be the small business capital of the nation.

She heard from local business owners and advocates representing everything from barber shops and a skincare business to a yoga studio, bartender training school and restaurants. She was also joined by Rep. Cynthia Neeley (D-Flint) and her husband, Flint Mayor Sheldon Neeley.

A recurring theme throughout the roughly 45-minute conversation was that many of the resources available to small businesses are designed either to get them started or are structured around businesses significantly larger than theirs.

One business owner said it becomes more difficult to find grants, mentorship and other support once a business has survived its first few years and is trying to scale. Another said microbusinesses are being lumped into the same category as companies with hundreds of employees when it comes to taxes, despite having vastly different resources to handle new regulations and costs.

“I shouldn't be in the same category as a Walmart,” Terance Green, owner of Black Amor Yoga Studio, said.

Some of the business owners also framed rising material and inventory costs as a consequence of tariffs imposed by the Donald Trump administration.

La'Asia Johnson, a skincare business owner, said she initially believed about 80% of her materials were being sourced domestically, only to discover that her U.S.-based suppliers were importing some of those materials themselves and passing along higher costs.

Others said the impact goes beyond businesses directly importing products, with higher costs for gas, supplies and other necessities eventually trickling down to them and their customers.

Several owners said they are caught between keeping their services affordable and making enough money to grow their businesses. Others described struggling with the cost of hiring employees, navigating taxes, obtaining financing and paying for health insurance.

One participant said her monthly health insurance cost increased from $283 to $490, while another said keeping a separate full-time job was necessary in part to maintain insurance.

“You are job creators,” Benson told the group after the conversation wrapped, “Everyone talks about needing more jobs, and here you are working every day, 80 hours, multiple jobs to create more jobs, to create power, create wealth.”

Benson spoke to reporters after her roundtable and laid out the three areas her small business agenda currently centers on.

First, she said she wants to streamline state government so it acts as a “helping hand and not an obstacle course” for small businesses. Second, she wants to increase financial assistance not only for startups but for businesses trying to scale, while expanding access to mentorship and networking.

Third, Benson said she wants the state to push back against federal tariffs or, as she says, “the John James tax”, including by pursuing subnational agreements with other countries.

Benson also fielded questions outside economic development, including one about what transparency means to her as she emphasizes safety and security while making decisions such as removing addresses from candidate filings.

Answering broadly, she returned to familiar themes of an “open and accountable” government. Benson pointed to a portal where the public can access Freedom of Information Act requests and responses and said that, if elected governor, she would "voluntarily comply with FOIA."

“To me, transparency and open government yield citizen engagement and help create an informed and engaged citizenry, which is crucial to a healthy democracy,” she said, “Citizens can have access to information about why and how decisions are being made that have impacted their lives, and can also be a part of those conversations as well.”

MEDC Releases Positive Business Surveys After Benson Remarks

The Michigan Economic Development Corporation released the positive results of an annual survey of 601 business leaders one day after Democratic gubernatorial candidate Jocelyn Benson floated the possibility of breaking up the organization.

The annual survey showed that 81% of business leaders had a positive impression of the MEDC and 1% of business leaders had a negative impression of the organization that provides state incentives to businesses and economic development projects.

"The people who work with my teammates confirm that I have some of the hardest-working and most dedicated economic development colleagues in North America, who remain laser-focused on delivering results for Michigan’s residents, businesses, entrepreneurs and communities across both our peninsulas," said MEDC CEO Quentin Messer Jr.

Of the 43% of surveyed business leaders who said they have experience working with the MEDC, 89% were somewhat or very satisfied.

The MEDC is expected to release an annual customer survey in the coming weeks that is expected to show many businesses, entrepreneurs and local governments that use the organization’s services were satisfied with its performance.

“There is always room for improvement and, daily, the MEDC team is committed to making that improvement. We are heartened that our businesses and communities who engage with us directly and deploy capital that employs people and revitalize communities affirm our value and the centrality of the MEDC to creating more avenues for economic opportunity for Michiganders,” Messer said.

MEDC Gives $1M Grant To Israeli Drone Company

The Michigan Economic Development Corporation announced nearly $1 million in state incentives for an Israel-based drone company to establish its U.S. headquarters in Sterling Heights.

Capture Systems Ltd., an Israel-based company specializing in military and homeland security drone technology, is expanding into Sterling Heights after forming Capture Group Inc. this year.

“Michigan offers an exceptional combination of engineering talent, manufacturing excellence, and a business-friendly environment, making it the ideal location for our next phase of growth,” said Capture Systems Group Chief Operating Officer Avi Braun.

Gov. Gretchen Whitmer said the move would create 125 jobs and help Michigan boost its reputation as a leader in research and development.

“Michigan is on the move and open for business, competing for and winning big projects in next-generation industries from aviation to defense,” she said.

The new Sterling Heights facility would manufacture counter-drone platforms, optical surveillance systems, and mobile defense systems. It would also be the base for testing of advanced counter-drone systems and remote-controlled weapons.

The federal government recently announced that Camp Grayling was a testing ground for drone research.