Despite Economic Slowdown, Strong Year for Access to Capital
As we near the end of 2020, it goes without saying that our country and economy experienced a wide range of challenges as a result of COVID-19. Despite the economic slowdown, we are proud to acknowledge that MEDC’s Capital Access team was still able to support small businesses in unlocking the resources needed to grow and thrive in Michigan.
Through the Collateral Support Program, which works to provide cash collateral accounts to lending institutions to cover all or a portion of the collateral shortfall of borrowers, and the Loan Participation Program, the state secured $31.7 million in new private investment and 154 anticipated new jobs. Additionally, through the Capital Access Program alone, the state was able to secure $11.6 million in private investment and 158 anticipated new jobs.
Over the past year, the MEDC provided $5 million in new funding to support small- and micro-business lending aimed at helping small businesses recover throughout the state. These programs remain in place to support new lending as Michigan companies continue to recover from the ongoing pandemic’s impacts over the coming year.
This support may be provided to small businesses in need of financing for real estate, equipment and working capital, including support for new lending to businesses which received a deferral on payments for its existing debt as a result of COVID-19 and may be disqualified from receiving assistance through the U.S. Small Business Administration or other programs.
Recently, the Michigan Strategic Fund approved $2.7 million in Collateral Support to Innotech Corporation, an LED lighting and technology manufacturer located in Zeeland. This assistance from the MEDC allowed the company to obtain a new working capital line of credit. While just one example, this is a promising sign that the economy is recovering, helping small businesses throughout every corner of Michigan become more resilient and successful moving forward.
Learn more about these programs and how they can help provide assistance.
On behalf of the MEDC Capital Access team, we wish you a happy holiday and a prosperous new year.
Chris Cook
Director, Capital Access
Michigan Regional Carpenters Council Training Center Will Lead to New Career Opportunities in Detroit
Last week, the state approved $5 million in collateral support to TCF Bank for the Michigan Statewide Carpenters and Millwrights Joint Apprenticeship and Training Fund to construct a training center on the west side of Detroit, in turn supporting additional workforce training within the state. The center will be operated by the Michigan Regional Council of Carpenters and feature classrooms and training areas for hands-on experience and real-world simulations. The building will also offer meeting space for contractor symposiums, career fairs, apprenticeship readiness programs and community events.
As part of the Michigan Regional Council of Carpenters’ commitment to the city, 25 percent of the apprentice applicants at the new center will be reserved for Detroit residents. The center is expected to open in 2021 and will begin hosting classes in early 2022.
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Annual Review Reminder
Annual reporting was due Oct. 15 and lenders should have received an email containing instructions on completing it. If you have not yet done so, please complete this reporting as soon as possible.
If you have any questions about reporting, contact Amber Westendorp at westendorpa1@michigan.org or (517) 335-8385.
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
