Michigan remains committed to building back a strong economy for all Michiganders despite the ongoing pandemic. Thanks to a historic influx of federal resources, the state has committed to making critical investments in our small businesses and the people who work in them that have faced unique, unprecedented challenges.

Over the past year, Michigan Economic Development Corporation (MEDC)’s Access to Capital Program has experienced increased demand as small businesses seek financing for working capital and the increased cost of construction. Through the Collateral Support Program, the state-supported $88 million in new private sector investment and 655 anticipated new jobs. Additionally, through the Capital Access Program, which uses small amounts of public resources to generate private bank financing, the state was able to secure more than $11 million in new private investment and 239 anticipated new jobs.

MEDC’s Access to Capital Program will focus its support in the new year on helping those small businesses still experiencing financial setbacks due to the pandemic, such as small businesses with 10 employees or less, businesses located in rural areas, and businesses owned by socially and economically disadvantaged individuals.

Below, you’ll read more about the new federal State Small Business Credit Initiative (SSBCI) 2.0 funding. You’ll also read the story of Detroit-based MyLocker, which doubled the size of its current location to accommodate its rapid growth thanks to funding provided by MEDC’s Access to Capital team.

As we near the end of 2021, our team would like to wish you a happy holiday season and a prosperous new year.

Chris Cook
Director, Access to Capital

State Small Business Credit Initiative 2.0 Funding Expected Spring 2022

Michigan has been awarded $216 million in new State Small Business Credit Initiative (SSBCI) funding by the U.S. Department of the Treasury. An additional $21 million may be allocated to Michigan based on utilization of the initial allocation. Funding will support new senior debt lending, microlending, early-stage investment and funding of technical assistance programs to small businesses.

Of the total allocation to Michigan, $13 million will be set aside to support small businesses with 10 employees or less and $40 million will be designated to support small businesses owned by socially and economically disadvantaged individuals.

As part of the American Rescue Plan, $10 billion has been allocated to the SSBCI 2.0, the second version of the original program that funds MEDC’s Capital Access, Loan Participation and Collateral Support programs. While SSBCI 2.0 funding is expected by the Spring of 2022, current funding remains in place so that MEDC can continue supporting businesses in need of new financing.

More information on new small business capital and technical assistance programs based on public feedback provided through the Request for Information released in September will be available in February 2022 with funding anticipated thereafter.

Print-on-Demand Shop in Detroit Expands State-of-the-Art Facility with Support from Access to Capital

Since its launch in 2004, MyLocker has experienced tremendous growth, evolving from a traditional screen-printing business to a lucrative print-on-demand model. After relocating a few times across Southeast Michigan, the company made the move to Detroit in 2014. After several years of operation, MyLocker quickly outgrew that building and came to a fork in the road: move locations again, which would be difficult with large production equipment, or expand its current location. MyLocker went with the second option, doing so with funding from MEDC’s Loan Participation Program, which is part of the Access to Capital Program. With support and guidance from the MEDC and Invest Detroit, MyLocker doubled its building size to bring the total square footage up to 250,000 square feet.

READ MORE ABOUT MYLOCKER’S SUCCESS

MEDC Holiday Hours

The MEDC will be closed from Thursday, December 23 through Friday, December 31, 2021. We look forward to supporting you once again in the new year.