1. 2.3.

Ann Arbor Spark

May 28, 2009

New Michigan Loan Program for 'Nearly' Bankable Companies

The MSF Board recently approved the Michigan Supplier Diversification Fund that targets Michigan suppliers that seek to diversify.  One element of the fund is for companies that have revenue and assets but can’t quite close on a bank loan given the current banking environment.  This program will pick up almost half the loan for a bank that would like to provide a loan to a solid company but can’t because the company comes up just a little short on the banks risk profile.
Per the MEDC: The MSF Board recently approved the new Michigan Supplier Diversification Fund available to Michigan suppliers and manufacturers looking for funds to diversify into new markets such as alternative energy, medical device manufacturing, aerospace and defense/homeland security contracting.
It’s called the Michigan Loan Participation Program (MLPP).  If a company would normally qualify for a MEGA tax credit it would be eligible for this.  Links to most of the state’s programs can be found at michiganadvantage.org.