517-265-5141

5285 W. US 223, Adrian, MI 49221

 
 

Business in Lenawee County, Michigan

State of Michigan Financing Programs

Michigan Business Growth Fund Collateral Support Program

"The recent economic downturn has resulted in suppliers’ property, plant, and equipment being devalued by as much as 80 percent. This leaves suppliers little or no collateral value to borrow against in order to fund diversification projects.   The intent of the Michigan Business Growth Fund—Collateral Support Program (mbgf–csp) is to supply cash collateral accounts to lending institutions to enhance the collateral coverage of borrowers. These accounts will cover all or a portion of a calculated collateral shortfall as described by the lending institution.

To qualify, a business must be engaged with a private lender for the purpose of acquiring a commercial extension of commercial credit and must exhibit a collateral shortfall according to the lender’s analysis.

Borrower must have no more than 750 employees, and otherwise comply with all state and federal requirements for the program.

Michigan Business Growth Fund Loan Participation Program

"Typically, lenders underwrite using historical cash flows from a business to calculate debt service coverage ratios. This practice impedes the ability of businesses to expand and diversify, especially during a slow economy. The Michigan Business Growth Fund—Loan Participation Program (MBGF– LPP) was designed to address this obstacle.

The intent of the MBGF–LPP is to participate with lenders to finance diversification projects when faced with borrowers whose projected cash flows are considered speculative by the lender. The MBGF–LPP will purchase a portion of a loan from the lender and offer a grace period on the program’s portion for up to 36 months. MBGF–LPP participation will be advantageous to lenders in two ways: 1) it will limit the project exposure of lenders; and 2) it will offer borrowers “free cash flow” during the grace period allowing full coverage on the lender’s portion of the loan. This will enable suppliers to acquire the needed financing to diversify into new growth industries.

To qualify, a business must be engaged with a private lender for the purpose of acquiring a commercial extension of commercial credit for a diversification or expansion project and must exhibit a cash flow shortage according to the lender’s analysis.

Borrower must have no more than 750 employees, and otherwise comply with all state and federal requirements for the program.

Michigan Pre-Seed Fund

The Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to up to $250,000 (matched dollar-for-dollar with outside investments) early-stage capital, accelerating company development. As a central fund to the Michigan SmartZoneSM 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.

Business Accelorator Grants

Business Accelorator Grants to start-up companies for up to $50,000.  The grant will provide funding for consulting services such as business modeling, marketing, strategic planning, or intellectual property advice.  The criteria for application is that the company is Technology-driven, especially with defensible intellectual property.  The company must have less than $1 million in outside investment and less than $1 million or $2.5 million in 12-month trailing revenue (depends on program requirement).  The company is registered with the State of Michigan and at least half the employees physically work in Michigan.

These grants are awarded through a competitive review process.  Companies receiving more than $15,000 in accelerator services will pay a 10% fee to the business accelerator.

Contact Tim Robinson at 517-265-5141 or tim@lenaweenow.org for more information about this program.