Michigan Pre-Seed Capital Fund Microloan Program
Michigan Pre-Seed Capital Fund Microloan Program
Michigan Pre-Seed Capital Fund Microloan Program
DEFINITION AND PURPOSE
The Michigan Pre-Seed Capital Fund through the Michigan Strategic Fund and supported by the Michigan Economic Development Corporation in collaboration with the Michigan SmartZones have established a microloan program to support innovative, high-growth start-up companies in the state as they near commercial viability but are not ready for outside funding. The focus is on companies that are creating innovative ideas and solutions in the areas of:
- Advanced automotive, manufacturing, and materials
- Alternative energy
- Homeland security and defense
- Life sciences
- Information technology
- Web 2.0, social networking
- B2B and B2C technology services and products
- Advanced agriculture
The purpose of the Fund is to accelerate company development by providing small loans that extend the personal investment of entrepreneurs and their own finance network during the critical stage when they are developing their businesses to the point of readiness for outside investment and sales. Companies are required to participate in a due diligence investigation by a SmartZone which will help entrepreneurs identify and address competitive, financial, regulatory and related risks through the screening process. The SmartZone will managing and coordinate the application process which will require:
- 10 page business plan
- Multi year proforma
- Bios or resumes of founder(s) and management
- SmartZone support letter and commitment for continued assistance