LANSING– Governor Jennifer M. Granholm and Michigan Economic Development Corporation (MEDC) President and CEO Greg Main announced that the Michigan Supplier Diversification Fund will help Saline Lectronics expand its operations to produce components for the aeronautics and medical devices industries and plans to create 53 new jobs and retain 82. The fund is a multi-faceted initiative designed to help Michigan manufacturers and auto suppliers diversify into new emerging sectors.
“The Michigan Supplier Diversification Fund is just the latest economic development tool to help Michigan companies diversify into high-growth sectors and create and retain jobs,” Granholm said. “While Saline Lectronics is the first company to benefit from this program, it won’t be the last as we continue to help companies anchor and grow in our state.”
With Michigan Strategic Fund approval, Saline Lectronics will receive assistance through the Collateral Support Program that was recently launched under the Michigan Supplier Diversification Fund. The program addresses the shortage of bank financing available to companies that are attempting to diversify. Under the program, the MEDC was able to partner with the company and Comerica Bank to provide the necessary collateral support to ensure the company could purchase the real estate needed to expand.
“Stabilizing automotive suppliers in Michigan and helping them diversify is a key part of our strategy to grow our economy,” MEDC President and CEO Greg Main said. “Using these funds will allow Saline Lectronics’ diversification project to proceed, which in turn brings jobs and investment to our state.”
The MSF board approved allocation of $998,000 to be used as a collateral deposit. Comerica Bank plans to fast-track a loan of $2 million for the project, which will create 53 new jobs and retain 82 existing jobs. The MEDC’s investment is intended to be temporary as real estate values stabilize.
“This program fits our company’s needs like a glove and will help us access the capital we need to expand,” said Mario Sciberras, president of Saline Lectronics. “Without the state’s involvement, this project would not be moving forward.”
To be eligible for the program, a company must fall under the definition of a firm eligible to receive a MEGA (Michigan Economic Growth Authority) tax credit. A business must also be engaged with a private lender for the purpose of acquiring a commercial loan for a diversification project and must exhibit a cash-flow shortage according to the lender’s analysis.
"Saline Lectronics has been a long-time customer of Comerica and we are delighted to help fund their expansion plans. The process for this program has been fast and efficient and we look forward to working with other companies on similar projects," said Daniel Maletich, senior vice president, Comerica Bank.
The MEDC is now accepting applications for the Michigan Loan Participation Program. Interested borrowers and lenders should contact the MEDC customer service center at (517) 373-9808 for more information about how to apply.
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