Credit Union Small Business Financing Alliance
The Michigan League of Credit Unions, in partnership with the Michigan Small Business Development Centers (MI-SBDC), has launched the Credit Union Small Business Financing Alliance. With an initial pledge of $43 million, credit unions around the state are engaged in Michigan’s economic transformation, providing new and small businesses with commercial loans.
Small Business Capital Access Program
The Small Business Capital Access Program (SBCAP) gives banks a flexible tool to make business loans to small firms, encouraging traditional lending to the small companies that are so vital to Michigan’s economic health. The Michigan Economic Development Corporation contributes a small amount of “gap financing” to provide Michigan businesses access to capital that otherwise might not be available.
More than 50 participating financial institutions offer SBCAP loans directly to Michigan based companies. Similar to a loan loss reserve fund, the bank, borrower, and Michigan Economic Development Corporation pay small premiums into a reserve that makes it possible for the company to receive fixed asset and working capital financing. Download the MEDC's fact sheet for more information.
SBA Certified Development Loans
The U.S. Small Business Administration's (SBA) program provides small- and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. Businesses must have a tangible net worth of less than $7.5 million and an average net profit of less than $2.5 million for the past two years.
Michigan Emerging Technologies Fund
Federal research and development funds support a critical stage for many technology companies as they move from the laboratory to the marketplace. The Emerging Technologies Fund, administered by the Michigan Small Business Development Center (MI-SBDC) for the Michigan Economic Development Corporation, is dedicated to match federal Small Business Innovation Research and Small Business Technology Transfer Research SBIR/STTR funding opportunities for exceptional research and technical innovation generated in Michigan. For more information, visit the Michigan Emerging Technologies Fund website.
Michigan Supplier Diversification Fund
Keeping auto suppliers working to diversify into new emerging sectors, the Michigan Supplier Diversification Fund was created in 2009 through the 21st Century Jobs Fund. The Michigan Economic Development Corporation partnered with private lenders to provide companies with the necessary liquidity to help purchase fixed assets and expand working capital as they translate manufacturing capacity into new 21st Century markets.
Companies engaged with a private lender for the purpose of acquiring a commercial loan for a diversification project experiencing a cashflow or collateral shortfall according to the lender’s analysis may qualify under one of the Fund's programs: The Michigan Collateral Support Program and the Michigan Loan Participation Program.
Private Activity Bonds
Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates. Download our factsheet for more information.