Michigan Pre-Seed Capital Fund Microloan Program
Michigan Pre-Seed Capital Fund Microloans range from $10,000 to $50,000. Companies must meet the following criteria before applying for funding:
- Be located in Michigan
- Have the rights (ownership or license) to innovative technology, or be seeking a strong IP position
- Be pre-revenue
- Funding is to be used for the development of a business that is focused on the commercialization of technology of interest to the 21st Century Jobs Fund
- Loans may not be made into a publicly held company, but may be utilized to spin technology out of a public company and establish a new private entity.
- Have potential for rapid growth and sales over $10 million annually in five years.
Companies can only be brought to the Fund by a sponsoring SmartZone. The submission package must include:
- Business plan (10 pages)
- Company overview
- Market information
- Product description
- Summary of Management talent
- Use of funds
- Strategy for future funding/financing
- Separate financial workbook
- Current balance sheet
- 12 month P&L projection
- Multiyear cash flow projection
- Bio/resume of founder and top management team (2 pages maximum for each)
- Recommendation by SmartZone on milestones to be accomplished and role the SmartZone will commit towards facilitating to help achieve such milestones
Before actual funding occurs the following documents will be provided and placed in the Administrators files:
- Background Check Reports
- Certificate of Good Standing with Michigan
- Business plan
- Promissory Note
See the Overview link for a complete explanation of the program.
See the actual Subordinated Promissory Note.
To begin the application process contact your local SmartZone.