DETROIT – The Pure Michigan Micro Lending Initiative will launch with an initial $5 million commitment by Huntington Bank for a pilot program in Detroit to be allocated as a loan to Detroit Development Fund, Governor Rick Snyder’s office announced Monday.
The Development Fund will lead a collaborative of micro lending partners, including the Detroit Micro Enterprise Fund, the Michigan Women’s Foundation, and Lifeline Business Consulting Services, a statement by the administration said. The Fund will aim to provide loans and services to the primarily women-and-minority-owned small and micro businesses in Detroit.
“This is the kind of innovative effort and collaboration that will help build a stronger Michigan and generate job growth by supporting small businesses and our state’s budding entrepreneurs,” Snyder said. “I am confident that early success in Detroit will quickly generate momentum in this initiative that activates further community partnerships and economic activity around the state.”
The Michigan Economic Development Corporation will provide initial credit reserves in support of the program, enabling up to $225 million in further bank partner funding for more micro loans across the state, the office said. Upon successful completion of the program, Huntington Bank will commit an additional $20 million to distribute through lines of credit to participating community micro lenders.
“Increased lending availability for small business opportunities that might otherwise go unfulfilled will significantly add to our toolkit to grow Michigan’s economy,” MEDC President and CEO Michael Finney said in the statement. “This innovative public-private partnership demonstrates a steadfast commitment to our common goal of helping Michigan’s small businesses move forward and grow and, in turn, bring jobs and investment to our state.”
The U.S. Treasury Department on Friday also signed off on using State Small Business Credit Initiative funds to support the state’s portion of the initiative.
“Today’s announcement is an example of the private sector, local organizations, the state of Michigan and the federal government coming together to support economic revitalization in Detroit,” said Don Graves, deputy assistant secretary of the U.S. Treasury Department. “Through the Treasury Department’s State Small Business Credit Initiative, federal funds are playing an active role in supporting Detroit’s entrepreneurs so they can grow their businesses and create jobs.”
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