February 4, 2010
Highlights the expansion of FastTrac entrepreneurship program, new small-business loans
LANSING - Governor Jennifer M. Granholm today joined with the Michigan Small Business and Technology Development Centers (MI-SBTDC), Michigan Credit Union League (MCUL), and FastTrac NewVenture program clients at TechTown in Detroit to discuss new tools available to help small- and medium-sized businesses grow in Michigan. The governor has announced that the Michigan Economic Development Corporation (MEDC) is helping to expand funding for FastTrac NewVenture, a program for entrepreneurs to learn how to successfully launch and grow a small business. Granholm also discussed a new partnership that will be launched this year with the MCUL and the MI-SBTDC to provide an initial $43 million for eligible small-business loans.
"Small businesses are vital sources of innovation and job-creation in Michigan," Granholm said. "Through collaboration and tools like the FastTrac program and the Michigan Small Business Financing Alliance with the Michigan Credit Union League, the state will enable even more Michigan citizens to develop their entrepreneurial talents that will help continue the diversification of Michigan's economy."
FastTrac NewVenture, a program of the Ewing Marion Kauffman Foundation, offers real-world guidance to people who want to become entrepreneurs. During the ten-week course, entrepreneurs evaluate the feasibility of their business concept, make contacts, and learn how to start profitable small businesses, attract new clients or customers, retain employees, and improve service and product offerings.
The Michigan Economic Development Corporation has pledged a $200,000 investment to expand the program in 2010, making it available statewide. This practical hands-on business development program builds on the model supported by the New Economy Initiative in southeast Michigan and the Grand Rapids Community Foundation in Kent County. Together, 1,000 prospective entrepreneurs will hone the skills to grow a successful, job-creating business.
"Michigan is committed to creating a robust, supportive culture of entrepreneurship that will strengthen and diversify the state's economy," MEDC President and CEO Greg Main said. "These new partnerships will be a driving force in this effort, empowering small-business owners and entrepreneurs to pursue their dreams and helping them to succeed.
"Michigan is committed to the growth of small businesses, which will play a critical role in rebuilding Michigan's economy," said Carol Lopucki, state director of the Michigan Small Business and Technology Development Center. "The FastTrac programs allow entrepreneurs and small-business owners an opportunity to test the feasibility of an idea and develop a plan before they launch a small business or take their business in a new direction. FastTrac is one of the many tools that are available to entrepreneurs here in Michigan."
The governor also announced today with the Michigan Credit Union League that over 30 credit unions have committed an initial $43 million for small-business loans in partnership with the MEDC and MI-SBTDC.
- The Michigan Credit Union League and its subsidiary CUcorp will coordinate the alignment of Michigan's 335 credit unions with the MI-SBTDC. A critical element of the program will be the alignment of applications for credit union capital with a technical assistance process administered by the MEDC and MI-SBTDC, which will include training and individual counseling. This assistance will increase the programs success since this type of loan carries higher-than-average credit risk, and credit unions will apply their normal careful underwriting standards for each loan.
- With the initial pledged funds of $43 million, assuming an average loan size of $20,000, credit unions hope to help at least 2,150 small businesses statewide.
- A formal working group to outline the step-by-step process will be immediately formed. The MCUL also will seek to advocate for state and federal legislation that will strengthen and expand access to funding leverage programs like the 21st Century Jobs Fund and the Capital Access Program in order to maximize the availability of capital to the Michigan small-business community.
"Credit unions, as not-for-profit cooperatives, have demonstrated their desire and capacity to lend during these difficult economic times," said Michigan Credit Union League CEO Dave Adams. "We are fueling loan growth for the auto industry through our Invest in America program (www.lovemycreditunion.org), and now we see great opportunities to expand small-business lending. It is what our state badly needs."
Inquiries regarding the new credit union small-business loan alliance should be directed to the Michigan Credit Union League at 800-262-6285. Further details regarding this program will be made available within the next 90 days. In the interim, interested potential borrowers can also contact their credit unions as a majority of credit unions do make small-business loans. However, inquiries regarding this specific alliance should be directed to MCUL. To register for the FastTrac NewVenture program or for more information, please contact the Michigan Small Business and Technology Development Center at 616-331-7480 or visit www.misbtdc.org.
In her State of the State address this week, Granholm also outlined an expanded Angel and Venture Capital Tax Credit, providing investors with a 25 percent tax credit on a qualified investment starting in the year of the investment. Granholm also highlighted the Michigan Supplier Diversification Fund, a multi-faceted initiative launched in 2009, which uses state resources to leverage private loans for manufacturers seeking to diversify into new sectors, including clean and renewable energy. For more information on these programs and more business tools, citizens can visit www.themedc.org
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