Michigan Fund Links Beaten Down Banks With Capital-Starved Businesses
An innovative state program in Michigan is bridging the capital gap between small businesses and lenders, while also aiding local enterprises in sagging industries re-focus on growing sectors. Launched in May, the pilot Michigan Supplier Diversification Fund helps businesses secure bank loans by providing financial collateral. For instance, the fund last month allocated $1.9 million to Maverick Industries, which allowed the manufacturing firm to land a $4 million loan to develop a business producing environmentally sound packaging. Another local enterprise, Wolverine Metal Stamping, received $1 million in funding as part of landing a credit union loan to enter the solar power sector. This is smart policy. Small businesses around the country are having trouble raising capital, as banks tighten lending…
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