Michigan Awarded More Than $236 Million in SSBCI Funding to Support Small Businesses
Michigan was approved in May for up to $236,990,950 in State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of Treasury. The Michigan Strategic Fund just received the first round of SSBCI funding – approximately $72 million. MEDC is grateful to receive this critical allocation and appreciate our lending partners as we work together to continue to lift up small businesses throughout Michigan.
In January, the Michigan Strategic Fund board approved the State Small Business Credit Initiative (SSBCI 2.0) Michigan Business Growth Fund 2.0 programs and guidelines to access a minimum of $215.7 million in federal funding allocated to Michigan in 2021 through an American Recovery Plan allocation. MEDC’s Capital Access team has shared some details below about anticipated changes to SSBCI 2.0 programming. Lenders may direct their questions to businessloans@michigan.org.
What types of support will Michigan’s SSBCI 2.0 programs include?
Michigan’s SSBCI 2.0 programs will include support to small businesses owned by socially and economically disadvantaged individuals (SEDI) and to very small businesses (10 or less employees) to ensure equity in access to capital for businesses across the state. The state will continue to support manufacturing while adding an emphasis on SEDI and small business lending, as well as adding support for early-stage funding and technical assistance programming.
Are there new industry requirements for the Collateral Support and Loan Participation programs?
For loans under $500,000, there will be no industry requirements except for those prohibited by the Michigan Strategic Fund Act and SSBCI Guidelines. For loans over $500,000, the borrower must operate primarily in the following industries: mobility, manufacturing, professional and corporate services, medical device technology, engineering, design and development, high tech, agribusiness, tourism, logistics and financial services.
When will the venture capital fund be available?
This equity program is intended to provide venture capital funding to early-stage companies operating primarily in advanced manufacturing, medical and medical device, aerospace and high tech. Funding will be provided through U.S. Securities and Exchange Commission (SEC) qualifying funds operating in Michigan. MEDC anticipates it will announce an open application to venture capital funds late this summer.
What is the Loan Guarantee Program?
The goal of the Loan Guarantee Program is to increase availability of funding to businesses seeking $250,000 or less in new lending. The program will operate throughout the state, largely through a network of Community Development Financial Institutions (CDFIs). MEDC’s Capital Access team will continue to provide updates as CDFIs and other approved small business lenders are enrolled.
How can lenders partner with the MEDC to support small businesses?
Lenders interested in supporting borrowers through the collateral support and loan participation program may contact MEDC Capital Access immediately related to those programs at businessloans@michigan.org. CDFIs and small business lenders seeking support through the loan guarantee support may also contact MEDC Capital Access. Small businesses seeking new financing should contact their local bank, credit union, or CDFI to discuss possible financing including SSBCI support.
LEARN MORE ABOUT MEDC CAPITAL ACCESS PROGRAMS
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
