Ann Arbor Business Funding & Incentives
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The information below provides a snapshot of the state and federal programs offered to qualified businesses for funding and other incentives.
State & Local Incentives:
Pure Michigan Asset-Based Economic Development Incentives are available. The Michigan Economic Development Corporation has a pool of $175 million available to qualified firms that are growing in or relocating to Michigan. The pool is split into the following funds:
- $100 million for attraction and economic gardening
- $25 million for business acceleration
- $25 million to support film and digital media industry
PA 198 - Industrial Property Tax Abatement (local) Industrial property tax abatements provide incentives for eligible businesses to make new investment in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, or renovate aging plants. High-technology operations are also eligible for the abatement.
Gap Financing Pilot Program The Gap Financing Pilot Program provides additional funding to manufacturing companies that wish to expand their operations. It is intended to supplement company investment and bank financing for eligible expansion costs including the purchase of equipment or inventory, facility enhancements and other company expansion expenditures, not to include working capital or refinancing.
Detroit Region Aerotropolis
Firms engaged in multimodal manufacturing, shipping, and supply chain management and located in the Aerotropolis boundaries may qualify for tax incentives, including 100% tax abatement of personal property and tax credits for five to 10 years.
Financing / Loans
Private Activity Bonds Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates.
Small Business Administration (SBA) Whether you’re just starting a small business or expanding to take advantage of new opportunities, your business needs the right financing at the right time in order to succeed. SBA is committed to helping small businesses, which are the backbone of the nation’s economy, thrive. Working closely with a wide range of lending partners across the country, SBA has developed a number of financial programs that address the various needs of small businesses.
Looking to expand or relocate?
If you are looking to relocate or expand your business in the Ann Arbor region, contact Phil Santer, SPARK’s vice president of business development, at Phil@AnnArborUSA.org.