ANNOUNCING THE STATE SMALL BUSINESS CREDIT
INITIATIVE
Michigan is First in Nation Approved for Federal
Small-Business Financing
Small businesses in Michigan today have new
opportunities to access the
capital funding they need to grow or diversify. On January 14, 2010,
Michigan was named the first state in the nation to win approval of
approximately $79.1 million in federal funding to support our state's
cutting-edge Capital Access, Michigan Collateral Support and Michigan
Loan Participation programs, part of the Michigan Business Growth Fund
(MBGF) efforts.
Michigan economic development officials were the driving force behind
the
creation and passage of the federal program, which will allocate $1.5
billion across all 50 states to support small business loans.
The Michigan Economic Development Corporation (MEDC) was instrumental in
the creation of the successful Michigan Supplier Diversification Fund
(predecessor to the MBGF) in June 2009 to address the widespread impact
of the credit crunch many companies faced as the result of the global
economic downturn. Since its inception, the program has committed
approximately $20 million which has sparked loans of more than $191
million to 23 companies. To date, the program has had no defaults and
has generated an estimated 4% annual return for Michigan taxpayers. So
far, the program estimates that it has created and retained over 1,800
jobs.
For more information go to:
http://www.michiganadvantage.org/Access-to-Capital/Default.aspx
