Unprecedented Partnership with Charter One Bank to Spur Job Creation
Charter One’s Job Creation Loan Program designed to create 5,000 new
jobs in Michigan
I’m pleased to announce an unprecedented new partnership between the state
of Michigan and Charter One Bank that will offer $200 million in loan funds at
a very low interest rate to companies that commit to creating or expanding jobs
in Michigan. These job creation loans are an integral part of my comprehensive
Jobs Today, Jobs Tomorrow economic plan to secure Michigan’s future.
The partnership with Charter One helps businesses grow in Michigan and helps Michigan
grow jobs for its citizens. Making sure that businesses have access to capital
to grow is critical for stimulating the economy today, keeping the businesses
and jobs we have, and growing jobs and the economy for the future.
The Charter One Job Creation Loan Program is the first of its kind in Michigan
and the largest of its kind in the country, and is scheduled to be in operation
over a two-year period. The new loan pool requires borrowers to create a minimum
of one full-time job for every $40,000 borrowed at the fixed interest rate of
4.99 percent (2.51 percent below today’s prime rate) for the life of the
loan. After 12 months, the offering rate for the program may be reset and would
be available for any loan booked in the second year of the program.
The term of the loan will require that the specified jobs be created within three
years after the funds are borrowed. The minimum loan size is $1 million, and the
maximum is $10 million.
The Michigan Economic Development Corporation (MEDC) will market the unique program
to companies already in Michigan and those businesses considering relocating to
the state. The agency will also conduct annual audits to certify that borrowers
fulfill job creation commitments. In addition, MEDC and Charter One will partner
closely with the economic development arms of the City of Detroit, and Wayne,
Oakland, and Macomb counties.
The loan program will be available to qualified borrowers starting immediately
and will be serviced through Charter One offices located in 12 counties throughout
Michigan, primarily Wayne, Oakland, and Macomb. Companies eligible for the program
include any public or privately owned business in a broad array of industry sectors,
including manufacturing, distribution centers, emerging sectors, and the 21st
Century Jobs Fund competitive-edge technologies: life sciences, alternative energy,
advanced automotive, manufacturing and materials, and homeland security and defense.
To read the press release, click
here.
Related Documents
> Working Our Plan, Securing Our Future - 125647 bytes 
|
Printer Friendly
Text Version
Twitter
Facebook
Yahoo
Google
Digg
reddit
Newsvine
StumbleUpon
Bookmark
Email Page