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The Michigan Business Development Program (MBDP) is an incentive program available from the Michigan Strategic Fund (MSF) in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans and other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment and results in a net-positive return to Michigan.
The MBDP is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. “Qualified new job” means a new, full-time job performed by an individual who is either: a resident of this state whose Michigan income taxes are withheld by an employer; or an employee leasing company or professional employer organization on behalf of the employer or an individual who is not a resident of Michigan and is employed by a business at a project location that is located in this state, provided that the business certifies in writing at the time of the MSF disbursement that not less than 75 percent of the employees of that business are residents of Michigan. In both cases, the qualified new job must be in excess of the number of jobs maintained by the qualified business prior to the expansion or location as determined by the MSF.
MSF support in the form of a grant will be performance based, with preference given to eligible businesses seeking to locate or expand in Michigan rather than in another state. Grants will include flexible terms and conditions, and will include repayment provisions under circumstances approved by the MSF. MSF support in the form of a loan will also be performance based, with preference given to qualified businesses needing assistance to expand in Michigan. Loans may include flexible terms and conditions, including below market interest rates, extended grace and repayment provisions, forgivable terms and flexible security requirements. Loans will also include provisions requiring repayment of loan funds under circumstances approved by the MSF. A commitment of staff, financial or economic support by the local municipality is required for all projects. The MSF will not provide support under this program for retail or retention projects.
All projects are subject to an application and due diligence process conducted by the MEDC. Projects that receive MEDC support will require MSF approval and an agreement between the MSF and the qualified business.
To receive consideration for funding under the MBDP, initial contact should be made with your local economic development office or the MEDC business development manager assigned to your territory.