Michigan is deploying the first round of State Small Business Credit Initiative (SSBCI) 2.0 funding from the U.S. Department of Treasury. Through this initial round of funding, up to $72 million will be available to support loans to small businesses through the MEDC’s SSBCI 2.0 Access to Capital programs, including the Collateral Support, Loan Participation, Loan Guarantee, and Capital Access programs, and equity investments for early-stage, technology-based businesses in Michigan as part of the Small Business Venture Capital Program New SSBCI 2.0 funding opportunities will be available within the next 60 days for small businesses owned by socially and economically disadvantaged individuals (SEDI and to businesses having 10 or fewer employees, seeking loans of $250,000 or less.
Michigan Receives First Round of SSBCI 2.0 Funding to Support Small Businesses, High-Tech Startups Throughout the State
Michigan is deploying the first round of State Small Business Credit Initiative (SSBCI) 2.0 funding from the U.S. Department of Treasury. Through this initial round of funding, up to $72 million will be available to support loans to small businesses through the MEDC’s SSBCI 2.0 Access to Capital programs, including the Collateral Support, Loan Participation, Loan Guarantee, and Capital Access programs, and equity investments for early-stage, technology-based businesses in Michigan as part of the Small Business Venture Capital Program.
In May, Michigan was approved for up to $236,990,950 in SSBCI funding to be used for capital access, credit support, and venture capital programs designed to support the growth of Michigan’s small businesses.
SSBCI 2.0 is designed to increase the availability of capital to small businesses through loans and equity investments. The programs are designed to allow private sector lenders to provide loans to small businesses that would otherwise not be available under conventional terms. The program requires partnership with private sector lenders, which in turn provide the new lending including through SSBCI 2.0 support.
New SSBCI 2.0 funding opportunities will be available within the next 60 days for small businesses owned by socially and economically disadvantaged individuals (SEDI and to businesses having 10 or fewer employees, seeking loans of $250,000 or less. Loans and equity investments under SSBCI 2.0 will be issued through lenders, not through the MEDC directly. MEDC is currently in the process of identifying lenders to support these businesses. Interested lenders should contact MEDC’s Access to Capital at businessloans@michigan.org for more information.
MEDC’s Access to Capital programs, including Collateral Support, Loan Participation, Loan Guarantee, and Capital Access programs, are currently available using SSBCI 2.0 funds for small businesses seeking loans of more than $250,000. Businesses should contact their local bank, credit union or CDFI to discuss financing opportunities, including current SSBCI-funded programs available.
Banks, credit unions and CDFIs may begin making applications for loan enhancement support through any of the current programs to the Michigan Strategic Fund (MSF) board. Updated program fact sheets and new SSBCI templates with industry eligibility updates can be accessed on the Capital Access program lenders page.
The Small Business Venture Capital Program (SBVCP) will utilize $75 million of the planned VC portion of Michigan’s $236 million allocation of SSBCI 2.0 funds to increase the availability of capital to early-stage, technology-based businesses aligned with the MEDC Strategic Plan. The program will invest as a limited partner in venture capital funds operating in the state who, in turn, fund qualified for-profit early-stage, technology-based businesses helping to support those businesses and continue to grow Michigan’s entrepreneurial ecosystem overall.
Interested venture funds should visit michiganbusiness.org/sbvcp/ for more information or may direct any questions to SBVCP@Michigan.org. Applications will be accepted by the MEDC during a three-year open period or until the budget is exhausted. Recommendations for awards will be submitted to the MSF Board for approval.
To learn more about how MEDC works to increase the availability of capital for Michigan companies at every stage of development, visit michiganbusiness.org/access-capital.