SBA partners with private firms to invest in Michigan

7/28/2011

The U.S. Small Business Administration recently partnered with the State of Michigan Retirement Systems, Dow Chemical and InvestAmerica to establish a funding program for Michigan businesses either in debt or in need of equity.

Over $130 million will be invested in the state through the government supported program, which looks to invest more than $1 billion dollars nationwide in similar initiatives that combine the capital, oversight and lending power of the SBA with various private entrepreneurial resources.

The program, called InvestMichigan looks to provide financial assistance to lower middle market companies that are either based in or plan on relocating to Michigan. Qualifying companies must be able to demonstrate stable cash flows, a definitive business model and growth plan, good management and a sound reputation.

InvestMichigan hopes to strengthen the state's economy by developing an environment suited to small business growth, and Govenor Rick Snyder called the initiative "a fine example of how public and private sector resources can cultivate growth in the business community while generating competitive market rates of return for the state’s pension funds."

Small businesses are considered one of the most direct ways to stimulate a down economy and create jobs. According to the SBA, the sector has created 64 percent of the net new jobs in the past 15 years.