Access to Capital

Michigan Economic Development Corporation works to increase the availability of capital for companies in Michigan at every stage of development. MEDC can help connect your business with capital providers – federal grants, venture capitalists, banks, and others – as well as offer programs that can expand the reach of those capital providers.

Debt Funding Programs

MEDC offers programs to assist companies with debt capital needs. Please visit the links below to find more information on these programs. 

Collateral Support Program

The Collateral Support Program is funded by federal dollars provided under the State Small Business Credit Initiative (SSBCI) Act of 2010, and is designed to assist lenders and borrowers in financing expansion or diversification projects. 

The Collateral Support Program seeks to enable suppliers to acquire the necessary financing that might otherwise be unavailable due to a collateral shortfall according to the lender’s analysis. The program will supply pledged cash collateral accounts to lenders to achieve this goal for approved projects. 

MEDC is now accepting applications for the Collateral Support Program.

Loan Participation Program

The Loan Participation Program is funded by federal dollars provided under the State Small Business Credit Initiative (SSBCI) Act of 2010, and is designed to assist lenders and borrowers in financing expansion or diversification projects. 

The Loan Participation Program seeks to enable companies to acquire the necessary financing that might otherwise be unavailable due to a cash flow shortage according to the lender’s analysis. The program will participate in loans with lenders to pursue this goal for approved projects. MEDC is now accepting applications for the Loan Participation Program.  

Capital Access Program

The Capital Access Program uses small amounts of public resources to generate private lender financing, providing small businesses in Michigan access to capital that might not otherwise be available. Similar to a loan loss reserve fund, the bank, the borrower, and the MEDC pay a small premium into a reserve that makes it possible for the borrower to receive financing.

For currently participating lenders, you can access the loan filing form, claim form, borrower assurances, lender assurances and operating company assurances forms below:

For lenders interested in participating in the Capital Access Program, you can access the necessary agreements below:

Community Development Block Grant Revolving Loan Fund

The Community Development Block Grant (CDBG) Loan Program (CLP), previously known as Revolving Loan Fund, was established in the early 1980s to distribute CDBG funds to eligible Units of General Local Government (UGLG) to carry out state approved loans that met CDBG program national objectives, primarily benefiting low and moderate income individuals. The program provides loans, loan guarantees, collateral enhancements, and provides capital in other allowable mechanisms through either an existing Community Revolving Loan Fund (CRLF) or through Regional Loan Fund Administrators (RLFA).

Agribusiness Financing Programs

The Michigan Department of Agriculture & Rural Development (MDARD), in partnership with the Michigan Economic Development Corporation (MEDC), offers multiple programs to help support the financing and growth of agricultural businesses in the State of Michigan. Michigan is an international leader in the agriculture industry, and MDARD and MEDC are committed to supporting the continued growth of the industry within the state. A critical component for success is ensuring that businesses can access the capital they need to grow. On-farm operations and retail projects are not eligible for these programs. The following programs are available to support the capital needs of the agriculture industry.

Loan Enhancement

Private Activity Bonds

Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates. 

Public facilities, which generate a revenue stream, (parking structures for instance) have traditionally been financed by municipalities through tax-exempt “revenue bonds.” Private activity bonds apply this same tax-exempt finance mechanism to the “public purpose” of economic development. The governmental unit borrows money from private capital markets, secured only by the project’s revenues rather than the government’s full faith and credit. Interest income earned on bonds issued by a governmental entity to finance a project for a private company which has demonstrated a good public purpose is exempt from federal, state, and local income taxes, thereby reducing the cost of capital (including the cost of letters of credit, remarketing fees, etc.). 

Capital Locator Tool
Use the MEDC capital locator tool to find and connect with capital providers.


First Capital Fund

The First Capital Fund provides “genesis” funds (up to $150,000) to new technology companies at the earliest stages of commercialization in the State of Michigan. The program provides funding up to $150K through quick, flexible financial instruments. The fund is milestone driven and focused on helping companies achieve follow-on funding from angel or venture investors within 12 months. For additional details and to apply, visit the First Capital Fund website.

Michigan Pre-Seed II Fund

Invest Michigan manages the Michigan Pre-Seed Fund II which invests capital in early stage high tech Michigan businesses. The firm is actively completing over 80 investments in 45 companies and supports these companies with “follow-on” investments through multiple rounds of financing with targeted investments of between $500,000 to $1,000,000 per company. For more information contact a local SmartZone or visit the Invest Michigan website.

Venture Capital & Private Equity Programs

MEDC is committed to supporting the growth of venture capital and private equity in the state. Please see the list below which shows current and programs. 

Accelerator Fund Program

The Accelerator Fund program seeded two new early stage venture capital funds. The Michigan Strategic Fund has committed a total of $12 million to the program.

Michigan Accelerator Fund I

The purpose of this venture capital fund is to achieve significant, long-term capital appreciation for its investors. The fund invests in early stage companies that fall into one of six target sectors: life sciences technology; advanced manufacturing; homeland security; alternative energy technology; information technology; and agriculture. Companies must be based in Michigan. The fund focuses primarily on seed and early stage venture capital investments in life science technology companies. for more information, visit the Michigan Accelerator Fund I website

Huron River Ventures

An investment partnership headquartered in Ann Arbor, Michigan, the firm invests in seed-stage, energy technology, cleanweb, and smart transportation enterprises. HRV is ideally positioned to take advantage of the convergence of two significant trends: Global Energy Technology Growth and Michigan’s Economic Transition. As these trends converge, entrepreneurs and technologists are increasingly seeking early-stage capital and support to commercialize breakthrough technologies. HRV was established to meet this need. For more information, visit the Huron River Ventures website.

21st Century Investment Fund

Created in 2006, the 21st Century Investment Fund is a fund of finds managed by Credit Suisse. It has committed $109 million from the 21st Century Jobs Fund as a limited partner in 12 venture capital, mezzanine, and private equity funds. These funds must invest in Michigan companies, at minimum, an amount equal to the MSF investment in each fund. The Fund seeks to strengthen and diversify Michigan's economy by fostering the creation and growth of new jobs, businesses, and industries within the state. This initiative is focused on four main sectors of the economy, including life sciences, alternative energy, homeland security and defense, and advanced manufacturing. For more information, visit the 21st Century Investment Fund website.

Venture Michigan Fund I & II

VMF is a $95 million venture capital investment program designed to help Michigan create jobs and bring new industries to the state through the creation of a fund-of-funds that invests in private equity managers that invest primarily in Michigan-based early stage companies. A unique component of VMF is that the capital for the fund is strictly raised by outside investors, with the Michigan Department of Treasury offering to provide investors with up to $200 million of tax voucher certificates to offset any shortfall. VMF seeks to invest in mainly Michigan based companies as well and Michigan focused private equity funds. Credit Suisse Bank manages the fund, and strives to highlight the strong opportunity for private equity investment in Michigan given the state's strong capital and resource base, a vibrant infrastructure of government, industry and academics, and the increasing number of start-up companies that require financing for growth. For more information, visit the Venture Michigan Fund website. 


InvestMichigan! is a $300 million fund focused on generating strong returns for investors and growing the next generation of Michigan companies. InvestMichigan! has two main components in order to support companies in both early and later stages of development. Under the Growth Capital Program, InvestMichigan! targets lead and co-investment opportunities in venture capital and small buyout stage companies. The Michigan Opportunities Program targets lead investment opportunities in buyouts and growth equity investments in well established companies. InvestMichigan! strives to fundamentally change the way that government and private business work together, and has several goals: to retain and attract businesses to Michigan, nurture portfolio companies at each phase of development, enhance the reputation and further develop Michigan’s entrepreneurial ecosystem, and attract leading regional and national private equity and venture capital investment funds to Michigan. For more information, visit the InvestMichigan! website.

Venture Fellows Program

This 18-24 month program will allow up to 10 fellows in a three year period to be hired at the venture capital firms in Michigan to create opportunities for emerging leaders who want to stay or move back to Michigan to seek careers in venture capital. For more information, visit the Michigan Venture Fellows Program website.   

Mezzanine Capital Programs

MEDC is committed to supporting the growth of mezzanine capital in the state. In addition to Grow Michigan, LLC,  21st Century Investment Fund and InvestMichigan! are also Mezzanie Capital Programs. Please see their information listed above. 

Grow Michigan, LLC

Designed to address growth and transition capital for small businesses, Grow Michigan, LLC is a public private partnership between the MEDC, the Michigan Strategic Fund, Crescent Capital LLC, and more than 10 large and small banks in Michigan. The fund is designed to operate below the traditional mezzanine markets offering loans from $500,000 to approximately $3 million in a subordinated (or secondary) collateral position at attractive rates. This capital, delivered in conjunction with a senior bank lender, can help a business grow into new contracts or finance succession/acquisition events. The fund’s projects must meet public policy goals including supporting jobs and investment in Michigan. For more information, visit the Grow Michigan, LLC website.