Funding and Incentives
The information below provides a snapshot of the state and federal programs offered to qualified businesses for funding and other incentives.
State & local incentives:
MICROLOANS
Ann Arbor/Ypsilanti LDFA (City of Ann Arbor)
The Ann Arbor/Ypsilanti SmartZone through the Local Development Finance Authority and Ann Arbor SPARK have established the Ann Arbor Micro Loan Fund (the Fund). The mission of this fund is to support innovative, high-growth start-up companies in the city of Ann Arbor as they near commercial viability. The focus is on companies that are creating innovative ideas and solutions.
Eastern Washtenaw County (county)
Washtenaw County and Ann Arbor SPARK have agreed to establish the Eastern Washtenaw Microloan Fund (the Fund). The mission of this fund is to support innovative, high-growth start-up companies throughout eastern Washtenaw County as they near commercial viability. The focus is on companies that are creating innovative ideas and solutions.
1st Step Fund
The First Step Fund represents a partnership of the Invest Detroit Foundation, TechTown and Ann Arbor SPARK to support a revolving loan pool to provide financing to emerging and newly-formed small businesses in southeast Michigan that have successfully completed a training program through a qualified regional business incubator/accelerator. The First Step Fund provides emerging companies with access to capital, addressing the deficit of financing in the marketplace for start-up companies. The intent is to promote economic development providing loans to early stage, commercially viable businesses creating jobs and increased tax revenue for the region.
GRANTS
Emerging Technologies Fund (ETF)
The Michigan Emerging Technologies Fund (ETF) is designed to expand funding opportunities for Michigan technology based companies in the federal innovation research and development arena. To that end, the Small Business & Technology Development Center (SBTDC) through the Michigan Strategic Fund (MSF) is dedicating up to $1.4 million to match federal funding opportunities for exceptional commercial opportunities in Michigan.
Michigan Emerging Technologies Fund matching funds
The ETF is a program to provide matching dollars for SBIR/STTR projects. Before submitting an SBIR/STTR proposal to the federal government, an applicant must first secure a matching commitment from the SBTDC. Preference will be given to those applicants who are able to demonstrate significant commercialization potential.
Jobs Training Grant (JTF)
Michigan Initiative for Innovation and Entrepreneurship (MIIE)
MIIE is a consortium of all fifteen Michigan Public Universities acting together strategically to foster a new Michigan knowledge economy based on entrepreneurship and innovation. By using the considerable resources of Michigan’s institutions of higher education, MIIE seeks to enhance the State’s economic competitiveness and stimulate growth. The consortium supports individual universities in their role as local and regional economic drivers for Michigan and encourages regional collaboration between universities, foundations, economic development organizations, government agencies,
and private enterprise.
Grant writing resources:
Biotechnology Business Consultants (BBC)
The team at Biotechnology Business Consultants provides intensive business development, training and consulting to support early stage life science and technology companies.
Michigan Small Business & Technology Development Center (SBTDC)
The Michigan Small Business & Technology Development Center (SBTDC) and BBCetc. are partnering to enhance small business innovation research (SBIR) and small business technology transfer (STTR) training services across the state.
INVESTMENT
Michigan Pre-Seed Capital Fund (View "Show Me The Money" Video & PowerPoint)
The Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to early-stage capital investment or micro loans to accelerate company development.
Venture Capital & Angel Sources of Funding
The Ann Arbor Region has a wealth of venture capitalists and Angel investors. The mission of these private firms is to make equity investments inearly stage and emerging growth companies.
SMALL BUSINESS ADMINISTRATION (SBA) GUARANTEED LOAD PROGRAM
The SBA does not make direct loans. Instead, the SBA guarantees loans made to small businesses by private investment institutions.
- The 504 loan provides long-term fixed-financing to acquire major fixed assets. 504 loans may be used to purchase land and buildings, to construct or renovate buildings, to purchase long-term machinery and equipment.
- The 7(a) loan provides flexible financing to start-ups and small firms that might have difficulty obtaining traditional financing. Uses may include working capital, machinery and equipment, leasehold improvements, debt restructure, and related uses. In addition, 7(a) can also be used to develop or expand exports.
See more information on Funding & Incentives for Business Expansion & Relocation >