Michigan is deploying the first round of the State Small Business Credit Initiative 2.0 (SSBCI 2.0) funding from the U.S. Department of Treasury. Through this initial round of funding, up to $72 million will be available to support loans to small businesses through the Michigan Economic Development Corporation’s Access to Capital Programs. SSBCI 2.0 is designed to increase the availability of capital to small businesses through loans and equity investments. The programs are designed to allow private sector lenders to provide loans to small businesses that would otherwise not be available under conventional terms. The program requires partnership with private sector lenders, which in turn provide the new lending including through SSBCI 2.0 support.

Within the next 60 days, funding also will be available for loans of $250,000 or less for small businesses, with a focus on businesses owned by socially and economically disadvantaged individuals, or businesses with fewer than ten employees, to apply for through specified lenders.

The Michigan Small Business Venture Capital Program (SBVCP) will utilize $75 million in SSBCI 2.0 funds to increase the availability of capital to early-stage, technology-based businesses aligned with the MEDC Strategic Plan. The program will invest as a limited partner in venture capital funds operating in the state who, in turn, fund qualified for-profit early-stage, technology-based businesses helping to support those businesses and continue to grow Michigan’s entrepreneurial ecosystem overall.