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MEDC | State Small Business Credit Initiative 2.0 Funding Update

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MEDC’s Capital Access Program remains committed to helping small businesses throughout Michigan receive loans from banks and lending institutions to help their businesses grow and succeed. Thanks to your partnership, small businesses have access to capital that would traditionally be unavailable.

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To grow our impact even further, in January 2022, the Michigan Strategic Fund (MSF) 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 the American Recovery Plan Act.

With the availability of SSBCI 2.0 funding, the state will be able to expand its existing programs to include support for 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. In addition, new programming will now offer technical assistance for small businesses.

Approval of the SSBCI 2.0 guidelines in January allowed the state to submit its application for its SSBCI funding to the U.S. Treasury. It is anticipated that the state could receive SSBCI 2.0 funding and the ability to begin implementing within the next few months. Until then, current funding remains in place so that MEDC can continue supporting businesses in need of new financing.

For more information on MEDC’s current Capital Access programs, visit here. For information on SSBCI 2.0 funding and to learn how your lending institution can get involved, please contact Chris Cook, Program Director or Amber Westendorp, Capital Project & Portfolio Manager.

Collateral Support and Loan Participation Programs Surpass $1B in Private Investment Leveraged
 
 

MEDC’s Capital Access Program’s Collateral Support (CSP) and Loan Participation (LPP) programs have surpassed $1 billion in new private sector investment leveraged. Since their inception in 2009, these programs deployed $220.2 million to support new lending across the state, which has resulted in private sector lenders being able to assist 260 small businesses with 302 loans. These projects have helped to create over 10,000 jobs. MEDC would like to thank its partner lenders for helping companies grow and succeed while strengthening Michigan’s economy.

 
 
 
 
 
 
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Capital Access Supports Michigan’s Thriving Food and Agriculture Businesses
 
 

As March marks Food & Agriculture Month – and with National Agriculture Day on March 22 – MEDC honors and celebrates Michigan’s farmers, the diversity of products grown and processed in the state, and the partnerships that keep the food and agriculture industry thriving. Michigan’s food and agriculture industry has generated 805,000 jobs and contributed upward of $104.7 billion to the state’s economy annually.

Companies like Six Lakes, Michigan-based Great Lakes Ag Irrigation Inc. provides growers with customized irrigation and water management solutions to help them keep up with the ever-growing demand for food and natural resources. Thanks to a partnership between MEDC’s Capital Access Program and Isabella Bank, Great Lakes Ag Irrigation’s President and CEO Clayton Irani was able to secure a $100,000 operating line of credit for his business.

 
 
 
 
 
 
 
Small Business Initiate Training Cohort Begins in May
 
 

Small businesses across the state now have access to new tools and resources to help them launch and grow in Michigan, including an online small business learning platform called Initiate. To best position the business community to access these tools, the MEDC has partnered with community and economic development organizations, financial institutions, and other small business support organizations to work one-on-one with businesses at the local level.

Through a “Train the Trainer” model, these partner organizations will learn how to use available tools to understand business needs, where to direct businesses using the MEDC Initiate portal, and more. Over the next year, the MEDC in partnership with Northern Initiatives will be offering three training cohorts. The Spring Initiate training cohort will begin May 4, 2022. Registration is required and space is limited.

 
 

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.

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