October 05, 2010
FOR IMMEDIATE RELEASE
October 5, 2010
Westland company benefits from increased access to capital
LANSING - Governor Jennifer M. Granholm today highlighted new financing opportunities for Michigan businesses during a visit to American Gear & Engineering in Westland where she was joined by company, banking and Michigan Economic Development Corporation (MEDC) officials.
American Gear & Engineering provides gears and specialty products for firms all over the country. With the assistance of the Michigan Supplier Diversification Fund (MSDF), the 25-year-old company is expanding into wind energy manufacturing. The MSDF uses state resources to leverage private loans for manufacturers seeking to diversify into new sectors, including clean energy. The State Small Business Credit Initiative, a component of the Small Business Jobs Act signed last week by President Obama, was modeled after the state's MSDF.
"Innovative financing tools like the Michigan Supplier Diversification Fund and the State Small Business Credit Initiative help companies like American Gear & Engineering take advantage of new opportunities," Granholm said. "By providing increased access to capital, we can assist small businesses in diversifying, growing and creating jobs."
The State Small Business Credit Initiative will provide approximately $78 million for Michigan's loan enhancement programs, including MSDF and the Capital Access Program. Operated by the MEDC, these programs help Michigan businesses access credit by leveraging private sector capital.
To date, the MSDF has supported 25 loans with a state investment of approximately $13 million. In turn, state investment has leveraged $100 million in private loans to Michigan companies.
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