Wednesday, May 10, 2006
Michael Shore, MEDC
Capital Access Program Making Loans to Small Business
st Century Jobs Fund initiative. The program is designed to help smaller firms obtain access to capital that might not otherwise be available through traditional lending.Granholm said banks across the state are participating and have made $539,000 available to date to small businesses for growth.She encouraged businesses to take advantage of this new tool for growing their company and creating jobs.
CAP leverages small amounts of public resources to generate private bank financing for most types of business with no restrictions on loan size or terms.
The Governor announced seven CAP loans (and their issuing banks) today:
- Primera Plastics in Zeeland- $250,000 through The Huntington National Bank;
- Clear Ridge Optics in Harrietta - $100,000 through West Shore Bank;
- Two Bean Coffee Co. in Dexter - $90,000 through Chelsea State Bank;
- House of Cabinets and Tile Gallery in Mt. Pleasant - $25,000 through Isabella Bank and Trust;
- Michwave Technologies of Grand Rapids - $22,000 through ChoiceOne Bank;
- Borck Family Chiropractic in Hudson - $52,000 through Hillsdale County National Bank.The owners were also approved for a separate $90,000 CAP loan.
Participating Michigan banks offer the CAP directly to businesses that need credit enhancement. Similar to a loan loss reserve fund, the bank, business and the Michigan Economic Development Corporation pay a small premium into a reserve that makes it possible for a business to receive fixed asset and working capital financing. CAP loans can be long- or short- term, term loan, or line of credit.
To date, 28 banks in Michigan have signed on to participate. The Governor noted banks are being added as the MEDC continues to market the program statewide. Participating banks include:
- CountyNational Bank
More information about the Capital Access Program can be found atwww.michigan.org/cap.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on MEDC initiatives and programs, visit the Web site atwww.michigan.org.
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