The state of Michigan is preparing to make available $237 million in federal funding to support local small businesses through lending initiatives and equity investments in venture capital funds. The Michigan Economic Development Corp. (MEDC) aims to deploy the federal funding across five programs, including investing $75 million in venture capital funds operating in the state, leveraging not just private capital investments but private sector expertise to help the small business community.
The planned Venture Capital Program is part of a broader Michigan Business Growth Fund 2.0 making use of the $10 billion allocated for the federal State Small Business Credit Initiative that was included in the American Rescue Plan Act signed by President Biden in March 2021.
“It’s too early to tell, but I would fully expect that people might take advantage of it and we might see formation of some new funds from it,” said Ara Topouzian, executive director of the Michigan Venture Capital Association. “The ultimate result is we want to see start-ups getting funded. Whenever you can provide funding like this, it’s a great opportunity for the start-up community.”
The plan is to be submitted to the US Department of Treasury by Feb. 11.
Read the full story and a breakdown of the Michigan Business Growth Fund 2.0 on MiBiz.
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