Michigan, today, is at a crossroads. Our economy is going through a transformation; the manufacturing industries that once guaranteed high-paying jobs are declining. To reshape our economy the 21st Century Jobs Fund has sparked new investment, creating high-tech companies and jobs which will diversify our economy and give new market players the Upper Hand in the state.
The 21st Century Jobs Fund will be used to jump start our economy now and diversify and grow the state's economy in the future by focusing resources in four areas:
Encourage the Development and Commercialization of Competitive-Edge Technologies: The 21st Century Jobs Fund will help diversify and grow our high-tech economy by investing in basic research at our universities and non-profit research institutions, applied research, university technology transfer and the commercialization of products, processes and services. The competitive-edge sectors are:
To view profiles of the commercialization competition portfolio, click here.
Increase Equity Investment Activity: To jump start our economy, the 21st Century Jobs Fund may invest funds in or alongside qualified equity funds, qualified mezzanine funds and qualified venture capital funds that will create or retain jobs in Michigan companies. To view profiles of our fund of fund investments, click here.
Increase Commercial Lending Activity: To stimulate additional lending by financial institutions across the state, the 21st Century Jobs Fund may create commercial loan enhancement programs where a documented growth opportunity has been identified. In addition, the 21st Century Jobs Fund will re-establish the Capital Access Program to assist small businesses.
Centers of Energy Excellence Program
Senate Bill 1380 / Public Act 175 established a Centers of Energy Excellence (COEE) Program to promote the development, acceleration and sustainability of energy excellence sectors in this state. In 2008, the Michigan Strategic Fund Board awarded $43 million to six Centers of Energy Excellence in the first phase of the program. 2009 Public Act 144 allowed a second phase of the COEE program. Key provisions of the COEE Phase II program include:
The Michigan Strategic Fund (MSF) Board shall not expend more than $30,000,000 of the money appropriated for programs authorized under this chapter from the 21st Century Jobs Trust Fund for the COEE Program.
Grants provided through the COEE Program shall only be awarded to for-profit companies. Participation of at least one qualified business and at least one institution of higher education or a national lab is required to operate a Center of Energy Excellence.
The funds shall be awarded to for-profit companies for all of the following purposes: match for federal funding of up to 50% of the total project cost; supplementing in-kind contributions provided by an entity other than this state; accelerating the commercialization of an innovative energy technology or process that will be ready to market within 3 years of the agreement date; activities of the Center, including, but not limited to, workforce development and technology demonstration.
The COEE Phase II Program was officially launched following the MSF Board meeting on January 27, 2010, as described in the COEE Program Press Release. Also approved at this board meeting was the standard process for evaluating COEE candidate applications and necessary and appropriate information to be included in the form of COEE candidate applications.
CURRENT COEE PHASE II PROGRAM STATUS:
The MSF Board in July 2010 approved the final COEE award for FY 2010. This award exhausted the remainder of the FY 2010 COEE funds, and the MSF Board closed the COEE award process for FY 2010 (ending September 30).
The COEE statute authorized additional funds to be spent, if appropriated by the state legislature. The MSF is currently in the budget approval process with the state legislature and will re-open the COEE award process pending availability of funds. Upon confirmation of available FY 2011 COEE funds all remaining COEE 2010 applicants will be notified and invited to re-submit their COEE proposals with any updates on their project scope, collaborations and funding support. Guidelines for the next round of funding and awards will be provided when the COEE award process is re-opened.
For further information about the COEE Program, email coee@michigan.org.
Next Steps
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