The Michigan Strategic Fund Board unanimously approved the creation of the State Small Business Credit Initiative 2.0 Technical Assistance Program Tuesday.
The program will use $72 million for loans and grants to help give capital to early-stage technology-based businesses through the Small Business Venture Capital Program. The money is coming from the U.S. Department of Treasury.
“Thriving businesses are vital to our state’s economy, and these federal funds are providing entrepreneurs and small businesses with timely financing to grow their business and create jobs,” Gov. Gretchen Whitmer said.
Funds will also be available for loans of $250,000 or less for small businesses, with an emphasis on poor or minority businesses or those with fewer than 10 employees. These loans make up the gap left through conventional loans on the market. To get the loan it requires partnering with private lenders, which provide support.
Anyone looking to apply for a loan can do so through the Michigan Small Business Venture Capital Program website.
Michigan was one of five states approved for the federal business credit funding and could be used to target entrepreneurs in underserved communities impacted by the COVID-19 pandemic.
U.S. Sen. Gary Peters (D) said he helped get the funding through the American Rescue Plan.
“Small businesses are the backbone of our economy. Ensuring their success is critical to Michigan’s long-term economic growth and resiliency,” Peters said.