Michigan to Deliver $79.3 Million in Additional Capital for Small Businesses and Entrepreneurs

LANSING, Mich. – Today, Governor Gretchen Whitmer announced the second round of State Small Business Credit Initiative (SSBCI) 2.0 funds, which will make $79,383,856 available for Michigan’s small businesses. In the first round, the MEDC supported 636 loans, totaling $72 million. 

“Michigan’s small businesses are the driving force behind our economy,” said Governor Whitmer. “Today’s nearly $80 million investment in entrepreneurs and small business owners across Michigan will create good-paying jobs and help us continue leading the future of manufacturing. Let’s keep working across the aisle in Lansing and with our partners in DC to help businesses of all sizes expand in Michigan so we can build on our strong economic momentum.” 

“The SSBCI program is a key tool in our continued efforts to decrease the gap in access to capital for Michigan small businesses,” said MEDC SVP of Small Business Services and Solutions Amy Rencher. “We are proud of our commitment to underrepresented small businesses in urban and rural communities across the state, demonstrated by unlocking an additional $8.1 million in capital for loans made to VSB and SEDI-led companies.” 

SSBCI is designed to catalyze private capital in the form of loans to and investments in small businesses, particularly in historically underserved communities and among entrepreneurs who may have otherwise lacked the support needed to pursue their business ambitions. SSBCI support can be transformative in a range of industries, including small manufacturing, supply chain, and other sectors. 

With its request for the second tranche of SSBCI 2.0 funding, the MEDC will continue to leverage these federal resources to improve access to capital for Michigan entrepreneurs.  

 

SSBCI Programs Supporting Small Businesses 

The state continues to help break down barriers for entrepreneurs through the SSBCI program, including the SSBCI Technical Assistance (TA) program. Michigan was awarded $5.2 million in federal funding to deliver legal, accounting, and/or financial advisory services to eligible small businesses through qualified technical assistance providers.  

The TA Program aims to increase awareness of SSBCI Capital Programs, to increase readiness to apply for capital, to support the successful acquisition of capital, and to provide support throughout the length of the loan. This work has created a coordinated, networked infrastructure of quality technical assistance providers that deliver high touch, one-on-one support of pre-loan and post close technical assistance in all areas of the state. This program is available to eligible very small businesses (VSB) with less than 10 employees, and SEDI-owned businesses. 

In October 2023, nine SSBCI Technical Assistance providers were selected to support entrepreneurs across the state in obtaining legal, accounting and financial advisory services to increase awareness of, and readiness for small businesses applying for capital. 

In September 2024, the MSF received its second tranche of TA funding from the U.S. Treasury, demonstrating the successful launch and deployment of the TA program and disbursement of tranche one’s funding to TA Providers. Over the next three years, TA Providers will serve over 2,000 Michigan businesses.   

Early program outcomes reflect 123 unique businesses served and 686 total TA hours delivered. Of the unique businesses served, 63 were referred to an SSBCI supported lending program. TA Providers supported the submission of 42 loan applications, 35 that have received approval resulting in securing over $1.8 million in capital.   

In September, the U.S. Department of Treasury also announced a $9.1 million grant to launch the Michigan Auto Supplier Transition Program (MASTP) to help small and underserved automotive manufacturers and aftermarket suppliers secure financing to scale and shift to supplying the electric vehicle supply chain.  

Made possible by SSBCI, MASTP will provide financial, legal, accounting, and other support services to underserved and very small businesses, including helping these firms to access the over $230 million in additional lending and equity investments made available to support Michigan businesses through the American Rescue Plan’s SSBCI program. The MEDC will oversee the program in coordination with the Michigan Department of Labor and Economic Opportunity Community and Worker Economic Transition Office. The program is anticipated to launch in January 2025. 

 

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.