There is another lending option for growing small businesses in Michigan with the launch of the
Grow Michigan fund.
Grow Michigan is a $60 million fund that was capitalized by the Michigan Strategic Fund and a number of Michigan's banks, including Fifth Third Bank, PNC, Huntington, The Private Bank, Crestmark Bank, Seaway Community Bank, The Bank of Holland, The Bank of Northern Michigan, and Mercantile Bank.
"When we're done we will have about $50 million in private investment," says Russell Youngdahl, Jr., CEO of
Grow Michigan, which is based in Plymouth.
Grow Michigan will provide strategic management advice and risk capital in the form of subordinated/mezzanine debt to established, Michigan-based small businesses. Grow Michigan mezzanine loans, made in conjunction with senior loans, will be in the $0.5-$3.0 million range in the form of 3-5 year subordinated debt, and carry a single digit coupon. The idea is to accelerate the growth of small businesses in the Great Lakes State by making more affordable lending options available to them.
"We want to touch as many small businesses as possible," Youngdahl Jr. says. "We want to touch as many people in the banking industry as possible.
Source: Russell Youngdahl, Jr., CEO of Grow Michigan
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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