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Wednesday, October 28, 2009
Supplier Diversification Fund Helping Michigan Manufacturer Expand into Solar Industry
LANSING – Governor Jennifer M. Granholm and Michigan Economic Development Corporation (MEDC) President and CEO Greg Main today announced that the Michigan Supplier Diversification Fund is helping Automation & Modular Components Inc./Quality First Systems Inc. in Davisburg to diversify its operations and create new jobs. The Michigan Supplier Diversification Fund is a multi-faceted initiative designed to help Michigan manufacturers and auto suppliers diversify into new emerging sectors.
“We are using every economic development tool at our disposal to help Michigan manufacturers like Automation & Modular find new growth opportunities and create new jobs in emerging markets such as solar energy,” Granholm said.
With Michigan Strategic Fund (MSF) approval, the company will receive assistance through the Michigan 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 Citizens Bank to provide the necessary liquidity to ensure the company could purchase fixed assets and expand its working capital.
Automation & Modular Components Inc./Quality First Systems Inc. is a manufacturer of modular conveyor systems utilized in assembly and materials handling in a number of industries, including automotive, electronics, food and pharmaceutical, will expand to serve manufacturers in the solar sector. Citizens Bank plans to fast-track a loan for approximately $2 million to finance the company’s diversification efforts at its Davisburg facility. The MSF approved an allocation of up to $998,000 that will be used as collateral support. The project is expected to create up to 50 new direct jobs over five years.
To be eligible for the program, a company must fall under the definition of a firm eligible to receive a MEGA 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 or collateral shortfall according to the lender’s analysis.
“The Collateral Support Program fosters cooperation between public and private entities to get essential capital flowing and is a critical part of our mission to bring jobs and investment to Michigan companies,” Main said.
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.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
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