Division III schools with good business programs

Bucknell University in Pennsylvania should be considered. Lehigh University also.

But, because you live in Michigan, and because the University of Michigan Ross School of Business is among the best in the nation, and because Ross has a separate building & now permits freshmen to be directly admitted to the Ross School of Business, you should consider applying, possibly EA (early action), to the University of Michigan Ross School of Business.

With respect to his basketball aspirations, there are probably several clubs & intra school leagues at Univ. of Michigan for which he can participate.

You can make a big school small, but you cannot make a small school big. Attending the Ross School of Business at Michigan easily enables one to enjoy the best of both worlds.