Thursday, February 4,
2010
Governor Underscores
Small Business Financing, Entrepreneurship Initiatives to Help Grow Michigan’s
Economy, Create Jobs
The governor today joined with the Michigan Small
Business and Technology Development Centers (MI-SBTDC), Michigan Credit Union League
(MCUL) and FastTrac NewVenture program clients at TechTown in Detroit to discuss two new programs available to help
small- and medium-sized businesses grow in Michigan. The programs were first
announced by the governor in her State of the State address as part of a broader
agenda to help businesses thrive in Michigan.
The governor said the Michigan Economic Development
Corporation (MEDC) is providing funding to expand FastTrac NewVenture, a program
for entrepreneurs to learn how to successfully launch and grow a small
business. The MEDC has pledged $200,000 to expand the program in 2010,
making it available statewide. Together, 1,000 prospective entrepreneurs
are expected to benefit.
Together with the MCUL, the governor also discussed the
creation of the Michigan Small Business Financing Alliance. In partnership
with the MEDC and MI-SBTDC, more than 30 credit unions have committed an initial
$43 million for small-business loans. Assuming an average loan size of
$20,000, the $43 million will allow credit unions to help about 2,150 small
businesses statewide.
The other programs announced by the governor in her
State of the State address to help businesses thrive in Michigan
are:
- Angel and Venture Capital Tax
Credit — This credit will help free up capital by providing
investors with an income tax credit for 25 percent of a qualified investment,
starting in the year of the investment.
- Access to Credit for Small and
Medium-Sized Businesses — The Granholm administration and
the Michigan
congressional delegation are advocating a National Manufacturing Loan Fund
based on the successful Michigan Supplier Diversification model. A
federal fund would mitigate risk and increase lending, thus strengthening
America’s manufacturing base and
creating or retaining jobs.
- Project Phoenix —
Project Phoenix will inventory and promote for reuse former manufacturing
buildings of 500,000 square feet or more, and land sites of 80 acres or more
where former manufacturing facilities already have been demolished.
Key messages:
- Small businesses
are vital sources of innovation and job-creation in Michigan. The
FastTrac program and Michigan Small Business Financing Alliance will enable
more business startups.
- Michigan is
committed to creating a robust, supportive culture of entrepreneurship that
will strengthen and diversify the state’s economy.
- People interested
in more information about the FastTrac NewVenture program should contact the
MI-SBTDC at 616-331-7480 or visit www.misbtdc.org. Inquiries regarding
the new credit union small-business loan alliance should be directed to the
MCUL at 800-262-6285.