LANSING, Mich. (AP) — The state of Michigan says it's accepting grant applications from local governments with rough finances.

The grants are designed to help cities, villages or townships. Communities experiencing at least one condition of probable financial distress can apply for up to $2 million.

The Treasury Department says grants can be used to pay for projects or services that move a community toward financial stability. About $5.4 million is available. Applications must be submitted by Oct. 20.

School districts aren't eligible.

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Online: www.michigan.gov/revenuesharing