Detroit City Wire

Governor Gretchen Whitmer has announced a second round of funding under the State Small Business Credit Initiative (SSBCI) 2.0, making $79,383,856 available to small businesses in Michigan. The first round 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."

The SSBCI program aims to improve access to capital for Michigan's small businesses, particularly those in underserved communities. Amy Rencher, MEDC SVP of Small Business Services and Solutions, highlighted their commitment: "We are proud of our commitment to underrepresented small businesses in urban and rural communities across the state."

This initiative seeks to catalyze private capital through loans and investments across various sectors, including manufacturing and supply chain industries.

The MEDC plans to use this second tranche of SSBCI 2.0 funding to enhance capital access for entrepreneurs. A part of this effort includes the SSBCI Technical Assistance (TA) program, funded with $5.2 million from federal sources, providing legal, accounting, and financial advisory services.

In October 2023, nine technical assistance providers were chosen to support entrepreneurs statewide. By September 2024, the MSF had received its second TA funding tranche from the U.S. Treasury.

Early outcomes show that these efforts have served 123 unique businesses with 686 total TA hours delivered. Of these businesses served by TA Providers, 63 were referred to an SSBCI-supported lending program resulting in securing over $1.8 million in capital through approved loan applications.

Additionally, a new grant was announced by the U.S. Department of Treasury amounting to $9.1 million for launching the Michigan Auto Supplier Transition Program (MASTP). This program aims at helping automotive manufacturers transition into electric vehicle supply chains.

The MASTP will be overseen by MEDC alongside other state departments and is set for launch in January 2025.

For more information on these initiatives or about Michigan Economic Development Corporation (MEDC), visit www.MichiganBusiness.org or engage via social media platforms like Facebook and Twitter.