May 10, 2006
May 10, 2006
Capital Access Program Making Loans to Small Businesses
LANSING – Governor Jennifer M. Granholm today announced the first six Michigan businesses to receive loans under the re-established Capital Access Program (CAP), part of the 21st Century Jobs Fund initiative. The program is designed to help smaller firms obtain access to capital that might not otherwise be available through traditional lending. Granholm said banks across the state are participating and have made $539,000 available to date to small businesses for growth. She encouraged businesses to take advantage of this new tool for growing their company and creating jobs.
“To help small businesses and entrepreneurs grow, we have to make sure they have access to capital,” Granholm said. “CAP will open new opportunities for small business owners and will be another tool to generate new jobs in communities across the state.”
CAP leverages small amounts of public resources to generate private bank financing for most types of business with no restrictions on loan size or terms.
The Governor announced seven CAP loans (and their issuing banks) today:
• Primera Plastics in Zeeland- $250,000 through The Huntington National Bank;
• Clear Ridge Optics in Harrietta - $100,000 through West Shore Bank;
• Two Bean Coffee Co. in Dexter - $90,000 through Chelsea State Bank;
• House of Cabinets and Tile Gallery in Mt. Pleasant - $25,000 through Isabella Bank and Trust;
• Michwave Technologies of Grand Rapids - $22,000 through ChoiceOne Bank;
• Borck Family Chiropractic in Hudson - $52,000 through Hillsdale County National Bank. The owners were also approved for a separate $90,000 CAP loan.
“This tremendous resource would not have been possible if not for the Legislature’s commitment to improving the state’s business climate and helping small businesses grow,” MEDC President and CEO James C. Epolito said. “I’m pleased that the state’s financial institutions are partnering with us to help the next wave of job providers get off the ground.”
Participating Michigan banks offer the CAP directly to businesses that need credit enhancement. Similar to a loan loss reserve fund, the bank, business and the Michigan Economic Development Corporation pay a small premium into a reserve that makes it possible for a business to receive fixed asset and working capital financing. CAP loans can be long- or short- term, term loan, or line of credit.
To date, 28 banks in Michigan have signed on to participate. The Governor noted banks are being added as the MEDC continues to market the program statewide. Participating banks include:
• Ann Arbor Commerce Bank – 2950 State St., Ann Arbor, MI 48104
• Bank of Lenawee – 135 E. Maumee St, Adrian, MI 49221
• Capital National Bank – 200 N. Washington Square, Lansing MI 48933
• Century Bank and Trust – 100 W. Chicago St., Coldwater, MI 49036
• Chelsea State Bank – P.O. Box 10, Chelsea, MI 48118
• Chemical Bank Shoreline – 728 Pleasant St., St. Joseph, MI 49085
• ChoiceOne Bank – 109 E. Division, Sparta, MI 49345
• Citizens National Bank – P.O. Box 10, Cheboygan, MI 49721
• Commercial Bank – P.O. Box 638, N. State St., Alma, MI 48801
• Community Shores Bank – 1030 W. Norton Ave., Muskegon, MI 49441
• County National Bank – One South Howell St., Hillsdale, MI 49242
• Fifth Third Bank – 111 Lyson Street NW, Grand Rapids, MI 49503
• Grand Haven Bank – 333 Washington Avenue, Grand Haven, MI 49417
• The Huntington National Bank – 10717 Adams St., Holland, MI 49423
• Independent Bank – 623 Washington Ave., Bay City, MI 48708
• Ionia County National Bank – 302 W. Main St., Ionia, MI 48846
• Isabella Bank & Trust – 139 E. Broadway, Mt. Pleasant, MI 48858
• Keystone Community Bank – 107 W. Michigan Ave., Kalamazoo MI 49007
• Lapeer County Bank and Trust – 83 W. Napessing St., Lapeer, MI 48446
• LaSalle Bank Midwest – 3201 N. Ashland Ave., Chicago, IL 60657
• Macomb Community Bank – 1600 Hall Road, Clinton Twp., MI 48038
• Macatawa Bank – P.O. Box 3119, Macatawa Dr., Holland, MI 49424
• Muskegon Commerce Bank – 281 Seminole Rd., Muskegon, MI 49444
• Portage Commerce Bank – 800 E. Milham, Portage, MI 49081
• Sturgis Bank & Trust – 113 East Chicago Dr., Sturgis, MI 49091
• United Bank & Trust – P.O. Box 248, Tecumseh, MI 49286
• United Bank & Trust Washtenaw – P.O. Box 1127, S. State St, Ann Arbor, MI 48106
• West Shore Bank – 201 W. Loomis St., Ludington, MI 49431
More information about the Capital Access Program can be found at www.michigan.org/cap.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on MEDC initiatives and programs, visit the Web site at www.michigan.org.
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