Debt Funding Programs

MEDC's Capital Access Program offers assistance to companies with debt capital needs. Please review the information below to learn more.

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 lenders interested in participating in the Capital Access Program, access the agreement 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).

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.).