Grow Michigan issues $20M in loans to 12 businesses in last year

Grow Michigan is wrapping up its first year of loans, dispersing $20.1 million to a dozen different growing companies in Michigan.

"Both the size and the speed of our loans is accelerating now that more and more people are becoming more aware of it," says Russell Youngdahl, Jr., CEO of Grow Michigan.

Grow Michigan got its start when a number of members of Michigan's banking community and the Michigan Strategic Fund put the $35.7 million fund together. It provides mezzanine loans that are made in conjunction with senior loans from other established lenders. Those loans range in size from $500,000 to $3 million.

"We're speculating that we will do $4 million a quarter (in loans)," Youngdahl says.

Among the recipients of the first round of loans are tier one and tier two automotive suppliers, aerospace manufacturers and hospitality firms.  

The $20.1 million in loans from Grow Michigan were part of a total debt package valued at $141 million. Those businesses employ more than 1,000 workers in the Great Lakes State.

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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