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Doing Business In

Doing Business In

State of Michigan Programs

 Michigan Economic Development Corporation (MEDC):  offers one-stop business assistance.  Our business development managers work with consultants, utilities, associations, and local economic development agencies to best match businesses’ needs with Michigan’s opportunities. This link will forward to the home page of the MEDC. 

Michigan Economic Development Corporation (MEDC) Funding Options: MEDC works to increase the availability of capital for companies in MIchigan at every state of company development.  This link will provide a brief overview of funding options that are offered. 

Guide to Starting and Operating a Small Business: Michigan's SBDC publishes a Guide to Starting and Operating a Small Business. Information included in this guide is both general and Michigan-specific: steps for starting a business; forms of business organization; elements of a business plan; federal, state and local tax obligations; management, hiring, marketing and more. This guide is a quick reference designed to assist in the process of starting and operating a business in Michigan.

Michigan Pre-Seed Fund Loan Program: The Michigan Pre-Seed Capital Funds supports high-tech start-up companies as they near commercial viability by providing access to early-stage capital, accelerating company development.  As a central fund to the Michigan SmartZone Network, these funds are designed to support this critical stage in the development lifecycle to prepare companies for follow-on private investment.  

Companies developing technologies in advanced automotive, manufacturing and materials, alternative energy, homeland security and defense and life sciences, statewide are eligible for these funds through the Michigan SmartZone Network.

Collateral Support Program:  The Collateral Support Program is funded by federal dollars provided under the State Small Business Credit Initiative (SSBCI) Act of 2010, and is designed to assist lenders and borrows in financing expansion or diversification projects.

Loan Participation Program:  The Loan Participation Program is funded by federal dollars provided under the State Small Business Credit Initiative (SSBCI) Act of 2010, and is designed to assist lenders and borrowers in financing expansion or diversification projects.

The Loan Participation Program seeks to enable companies to acquire the necessary financing that might otherwise be unavailable due to a cash flow shortage according to the lender’s analysis.  The program will participate on loans with lenders to pursue this goal for approved projects.

Capital Conduit Program:  The Capital Conduit Program is a vehicle used to support both small business and real estate capital market partners.  Developed as a loan enhancement program, it provides low cost capital to a lender or fund manager in exchange for strong private investment participation, a commitment to 100% Michigan Transactions, and other asset class specific policy goals. 

Capital Access Program: The Capital Access Program uses small amounts of public recourse to generate private lender financing, providing small businesses in Michigan access to capital that might not otherwise be available.  Similar to a loan loss reserve fund, the bank, the borrower, and the MEDC pay a small premium into a reserve that makes it possible for the borrower to receive financing.

Community Development Block Grant Revolving Loan Fund: The Community Development Block Grant (CDBG) Revolving Loan Fund Program (RLF) was established in the early 1980s to distribute CDBG funds to eligible Units of General Loan Government (UGLG) to carry out state approved business loans that met CDBG job creation objectives, primarily benefitting low and moderate income individuals.  The program provides loans, loan guarantees, collateral enhancements, and provides loans, loan guarantees, collateral enhancements, and provides capital in other allowable mechanisms through either existing Revolving Loan Funds based within a specific UGLG or through newly established Regional Revolving Loan Funds.

Agribusiness Financing Programs:  The Michigan Department of Agriculture & Rural Development (MDARD), in partnership with the Michigan Economic Development Corporation (MEDC), offers multiple programs to help support the financing and growth is an international leader in the agriculture industry, in the State of Michigan.  Michigan is an international leader in the agriculture industry, and MDARD and MEDC are committed to supporting the continued growth of the industry within the state.  A critical component for success is ensuring that businesses can access the capital they need to grow.

Energy Loans:    Small businesses looking for support for building energy retrofits, process improvements, retooling, and renewable energy projects may qualify for an Energy Efficient and Renewable Energy (EERE) loan offered through the Michigan Energy Office.

Private Activity Bonds:  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.

Michigan Crowdfunding Legislation:    The Michigan Crowdfunding legislation, Michigan Invests Locally Exemption (MILE), allows small businesses to raise capital by reaching out to Michigan residents to invest in their companies.