Michigan 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.

Two weeks ago, Michigan became the first state in the nation to win approval of approximately $79.1 million in federal funding to support the state's Capital Access, Michigan Collateral Support and Michigan Loan Participation programs, part of the Michigan Business Growth Fund 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 Corp. 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 percent 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 www.michiganadvantage.org/Access-to-Capital/Default.aspx