The Small Business Capital Access Program and Michigan Business Growth Fund are debt programs providing a backstop and reduced risk in lending to early stage, transitioning and expanding companies.
The Small Business Capital Access Program (SBCAP) gives banks a flexible a tool, encouraging lending to small firms of less than 500 employees. Approximately 80 participating financial institutions in Michigan offer SBCAP loans in partnership with the Michigan Economic Development Corporation (MEDC). Similar to a loan loss reserve fund, the lender, borrower and MEDC, through the 21st Century Jobs Fund, pay small premiums into a reserve account that makes it possible for the company to receive fixed asset and working capital financing.
| | MICHIGAN BUSINESS GROWTH FUNDKeeping businesses working to expand and diversify into new industries in mind, the Michigan Business Growth Fund was created in 2009 through the 21st Century Jobs Fund. In 2011, the Fund received funding through the State Small Business Credit Initiative. The Michigan Economic Development Corporation partners with private lenders to provide companies with the necessary liquidity to help purchase fixed assets and expand working capital as they pursue opportunities for growth and diversification. Companies engaged with a private lender for the purpose of acquiring a commercial loan for a diversification or expansion project experiencing a cash flow or collateral shortfall according to the lender’s analysis may qualify for one of the Fund's programs: Download the Fund's Michigan Collateral Support Program fact sheet Download the Fund's Michigan Loan Participation Program fact sheet Download the Loan Enhancement Intake Form |
| | The Michigan League of Credit Unions, in partnership with the Michigan Small Business Technology Development Centers (MI-sbTdc), has launched the Credit Union Small Business Financing Alliance. With an initial pledge of $43 million, credit unions around the state are engaged in Michigan’s economic transformation, providing new and small businesses with commercial loans. For information on how to enter the Credit Union Small Business Financing Alliance (CUSBFA), contact one of the 12 MI-sbTdcs directly or visit the CUSBFA website. |
| | SMALL BUSINESS CAPITAL ACCESS PROGRAMThe Small Business Capital Access Program (SBCAP) gives banks a flexible tool to make business loans to small firms, encouraging traditional lending to the small companies that are so vital to Michigan’s economic health. The Michigan Economic Development Corporation contributes a small amount of “gap financing” to provide Michigan businesses access to capital that otherwise might not be available. Approximately 80 participating financial institutions offer SBCAP loans directly to Michigan based companies. Similar to a loan loss reserve fund, the bank, borrower and Michigan Economic Development Corporation pay small premiums into a reserve that makes it possible for the company to receive fixed asset and working capital financing. Download Small Business Capital Access Program fact sheet
Download Capital Access Program claim form
Download Capital Access Program Loan Filing form
Download SSBCI - CAP Agreement
Download SSBCI - CAP Amendment - Borrower Assurances
Download SSBCI - CAP Amendment - DRAFT |
| | Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates. |
