Michigan reaping the benefits of SBA-backed financing

8/1/2011

Despite being hit hard by the recession, Michigan is showing signs of improvement thanks to improving small business lending. According to Crain's Detroit Business News, the state has seen the largest number of special 7(a) U.S. Small Business Association-backed loans of any state district so far this year.

Michigan saw some of the worst effects of the late-2000s housing crunch, and the corresponding recession has taken a toll on the state's important auto industry. A small business-based boom is a good indicator the local market may be turning around.

The SBA's 7(a) loan program is meant to assist certain ventures such as rural businesses and special case borrowers. Small businesses that export goods, veteran and active duty entrepreneurs, companies dealing in specific environmental industries and those in underserved locations are all examples of potential applicants for the program.

This August and September, Michigan will further benefit from the first-ever SBA Small Business Outreach Tour, which will visit 15 cities in the state to inform and assist small business owners and startups interested in federally backed financing. Both industry experts and SBA officials will offer lectures, materials and networking opportunities to area entrepreneurs.