Small Business Finance News
Michigan Small Businesses That Invest In Clean Energy, In Distressed Areas To Get Help
Written by Jenna Weiner
Published: 7/26/2011
Michigan small businesses will be the first to benefit from a federal loan program targeting clean energy and economic recovery.
U.S. Small Business Administration state and federal officials are expected to announce today that Michigan will be the first state to test out giving loans to businesses investing in clean energy or located in economically distressed areas.
Private institutional investors will help identify and provide money to fund managers who invest in targeted companies through the initiative. Funds from the federal government will be offered to small businesses that get a share of the private investments.
According to a report from the Detroit Free Press, $130 million is expected to be invested in second-stage growth companies through a partnership with Midland, Michigan-based Dow Chemical and state and federal agencies. The news source said Dow has pledged $15 million, the state will invest $20 million in employee retirement funds and $15 million will come from the Department of Natural Resources trust funds. The SBA offers a two-for-one match for up to $80 million.
The national program will try to spread $1 billion in investments, according to the Free Press. The program is part of President Barack Obama's Start -Up American initiative, which is meant to spur growth in entrepreneurship and small businesses. The goal is to create jobs in high-unemployment areas.
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