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New Michigan Programs Increase Access to Capital for Manufacturers

New Michigan Programs Increase Access to Capital for Manufacturers

The Michigan Economic Development Corporation (MEDC) is launching two new programs intended to support the manufacturing industry through access to capital from local banks. The Michigan Strategic Fund Board approved the State Small Business Credit Initiative Michigan Business Growth Fund 2.0 for a minimum of more than $215 million in federal funding through the federal American Recovery Plan Act, with an initial amount of $72 million available to support the programs.

Michigan Business Growth Fund Loan Participation Program

Created to help borrowers by supporting lending partners to finance projects where cash flows are not that strong or where lenders are seeking non-competitive participants due to a legal lending limit or portfolio concentration concern.

The Fund will purchase a portion of the loan from the lender with an option to offer a grace period on that portion for up to three years. Eligible companies must be under 750 employees with an individual loan request allowance of up to $20 million for manufacturers. The fact sheet with full details on eligibility and the application process is available here.

Michigan Business Growth Fund Collateral Support Program

This program addresses collateral shortfalls that would prevent a lender from providing new financing to a small business in Michigan by providing cash to enhance the coverage of borrowers. The cash collateral deposits will cover all or a portion of the calculated collateral shortfall as described by the lender. Manufacturer eligibility is capped at $20 million for extensions of this credit. A fact sheet with full details on eligibility and the application process is available here.

Our manufacturing specialists can assist in preparing you for the application process and helping you maximize your available cash flows.

 

08/23/2022

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