LANSING – The Michigan Economic Development Corporation today announced that the Michigan Strategic Fund will provide a $1.8 million Michigan Business Development Program incentive to Credit Acceptance Corporation to expand in Southfield, a project that will generate up to $10.2 million in new private investment and add 274 new jobs.
“Credit Acceptance’s expansion is another example of how our economic gardening strategy is helping companies grow and enlarge their footprint in Michigan,” said MEDC President and CEO Michael A. Finney. “This investment shows that Michigan’s highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading edge companies.”
Credit Acceptance Corporation, (NASDAQ: CACC) is a Michigan company headquartered in the City of Southfield. Since 1972, Credit Acceptance has offered automobile dealers a financing program that enables them to sell vehicles to consumers, regardless of their credit history. Credit Acceptance has received a $1.8 million Michigan Business Development Program incentive to add team members at its two Southfield facilities in order to meet future staffing needs of the organization. Credit Acceptance proposes to invest up to $10.2 million and create up to 274 new jobs as a result of the project. Michigan was selected over competing sites in Nevada, India and Costa Rica. The City of Southfield is proposing support for the project in the form of a tax abatement.
Signed into law by Governor Rick Snyder in December, the Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
The Michigan Business Development Program replaces the state’s previous MEGA program that was a feature of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Snyder in May 2011. The Michigan Business Development Program and Michigan Community Revitalization Program are MEDC Business Attraction and Economic Gardening programs, supported by the MSF state general fund appropriation.
The Michigan Economic Development Corporation, a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan's economy. For more on the MEDC and its initiatives, visit: MichiganBusiness.org