Lt. Governor Garlin Gilchrist II announced recently that nine organizations in Michigan will receive federal grants from the State Small Business Credit Initiative (SSBCI) Technical Assistance (TA) grant program to better support small businesses with technical assistance like legal, accounting, and financial advisory services.
The nine awardees are: ACCESS, Great Lakes Women’s Business Council, Metro Community Development, Inc, Metro Detroit Black Chamber of Commerce Foundation, Michigan Minority Supplier Development Council, The Michigan Women’s Forward Foundation dba Michigan Women Forward, Northern Great Lakes Initiative, Local First Educational Foundation, and ProsperUs Detroit Micro Lending.
“Small businesses are the backbone of Michigan’s economy, and we must continue to make every effort to foster their success,” Gilchrist said. “We want to make it clear that through resources like the State Small Business Credit Initiative, small businesses can thrive, grow, and Make It in Michigan.”
Over 60 applicants and $94 million in total funding requests were considered for the $5.2 million SSBCI program, reflecting the significant demand and highly competitive nature of this new program. The Michigan Strategic Fund will contract with the nine selected providers to help them connect small business owners to resources, representing a Team Michigan commitment to serving more diverse and microbusinesses. Over the next three years of the grant program, approximately 2,000 businesses will receive support services through this funding.
“We are deeply honored to be selected as an awardee of the SSBCI Grant Program,” said Ayesha Maxwell, Manager of Entrepreneurship Programming with ACCESS. “This grant will empower us to expand our reach and impact, enabling us to better serve SEDI and VSB in the Arab American community and beyond. Together, we will create opportunities, drive economic growth, and foster economic parity for all.”
The nine selected TA providers will serve eligible businesses across all 83 counties across the state of Michigan. By creating a pipeline for capital, leveling the playing field, and making the government work better for all Michiganders, Team Michigan will help more small business owners make it in Michigan.
“I want to extend our deepest gratitude to Governor Whitmer, Lt. Governor Gilchrist, and the Michigan Economic Development Corporation for selecting Metro Community Development as a recipient of the SSBCI Technical Assistance grant,” said Marcus Rankins, Vice President of Asset Development for Metro Community Development, Inc. “This incredibly generous act of confidence is not only an endorsement of Metro’s ongoing efforts, but also a commitment from our governor in providing resources for small businesses. Governor Whitmer continues to be a champion for entrepreneurs and small businesses, and especially those that have traditionally been underserved.”
Program Background
The American Rescue Plan Act of 2021 provided $200 million for federally allocated TA funding. As part of that allocation, the U.S. Treasury awarded just over $5 million to the State of Michigan for the implementation of the SSBCI Technical Assistance Grant Program.
The program works to help Michigan’s small businesses by:
•Helping small business owners find and win capital
•Increasing financial and business management skills
•Providing support across the entire state
SSBCI 2.0 is a reauthorization of a federal program administered by the Department of the Treasury. The prior program, SSBCI, was approved in 2010 and used to administer a suite of loan enhancement programs.
Today’s announcement builds on other SSBCI initiatives launched in the state of Michigan this past year to support small businesses.
Michigan received its first round of SSBCI 2.0 funding in August 2022, with $72 million available to support loans to small businesses through MEDC’s Access to Capital programs, including the Collateral Support, Loan Participation, Loan Guarantee, and Capital Access Programs, as well as equity investments for early-stage, technology-based businesses in Michigan as part of the Small Business Venture Capital Program.
In March 2023 the Michigan Economic Opportunity Fund, a $10 million microbusiness loan program for women and entrepreneurs of color in Michigan, received partial support through a $1.5 million SSBCI loan participation. These funds will help promote entrepreneurship and democratize access to startup capital, including for those in traditionally underserved communities.
“In Michigan, we are committed to supporting small businesses by doing everything we can to provide them with the resources they need for growth and success,” said MEDC Senior Vice President of Small Business Services Amy Rencher. “The selected TA providers represent the highest quality programs, rooted in national best practice, and consist of mission-based lenders, culturally competent technical assistance providers, and entities bringing experience and expertise in key industries, distinct cultural and ethnic demographics, and that address unique small business needs such as employee ownership conversions. We’re incredibly excited to utilize this investment to make pre-loan and post close technical assistance more accessible.”
To learn more about the SSBCI TA program and stay up-to-date on the latest news and resources, visit michiganbusiness.org/services/ssbci-technical-assistance-grant-program.
Source: State of Michigan
