Michigan Business Development Program
The Michigan Business Development Program is a new incentive program available from the State of Michigan. The program is designed to provide grants, loans or other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment.
The Michigan Business Development Program (MBDP) is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. The qualified new jobs must be held by Michigan residents and be in addition to those maintained in Michigan prior to the project. Eligible investment includes investment made by the business in Michigan in support of the project and approved by the State. Preference may be given to businesses in need of additional assistance for deal closing and second stage company gap financing.
Any business seeking to qualify for MBDP support on the basis of job creation must create a minimum of 50 qualified new jobs. If a project is in a rural county (a county with a population of 90,000 or less) or qualifies as a high-technology activity, in which case the business must create a minimum of 25 qualified new jobs.
The State may consider the following factors when considering a project for MBDP Support:
- Out-of-state competition
- Net-positive return to Michigan
- Level of eligible investment in the project
- Business diversification
- Near-term projects with identified financial support
- Re-use of existing facilities
- Near-term job creation
- Level of wages for new jobs
- Employer provided benefits
- Strong links to Michigan suppliers
- Whether the project is in a distressed or targeted community
Performance Based Grant
MBDP support in the form of a grant will be performance based, with preference given to eligible businesses seeking to locate or expand in Michigan rather than in another state. MBDP support in the form of a loan shall also be performance based, with preference given to qualified businesses needing assistance to expand in Michigan. Loans may include flexible terms and conditions, including below market interest rates, extended grace and repayment provisions, forgivable terms and flexible security requirements.
The MBDP will not provide support under this program for retail or retention projects. MBDP support for any project may not exceed $10,000,000.
Contact Tim Robinson at 517-265-5141 or tim@lenaweenow.org for more information about the MEDC Business Development Program.