LED Optical Solutions lands Michigan micro loan

Thursday, May 6, 2010 | Source: metromode

LED Optical Solutions is the latest Metro Detroit company to feed at the financing trough provided by the Michigan Micro Loan Fund.

The Washington Twp-based firm is splitting $121,000 in loans with two other companies, including RiserCam in Ann Arbor and Inventure Enterprises in East Lansing. The proceeds are meant to help the companies continue their product development or expand their businesses.

LED Optical Solutions specializes in LED light systems for commercial customers. Think warehouses and parking garages where the big lamps burn for hours on end, sucking up nearly countless watts of electricity. These systems are generally considered the next big thing in energy-efficient lighting because they use a fraction of the electricity of normal light bulbs.

The two-year-old company will use its loan to build 10 prototypes for ornamental street lighting. The first installations will be pilot projects in a few local communities, including Warren and Ann Arbor.

"That will put them in place so we get some data," says Ingo Schneider, President and CEO of LED Optical Solutions. "That will be used to validate the product."

The 15-person firm hopes to use this information so it can continue its expansion, which could lead to two more hires by the end of the summer.

Ann Arbor SPARK runs the micro loan fund. That $1.5 million program provides funding for start-ups so they can either commercialize their product or accelerate business growth. The idea is to help fill the financing void left in the wake of the financial crisis. The fund has been so popular that numerous other municipalities and business accelerator agencies are scrambling to create their own, including Oakland County and the OU INCubator.

In 2010, the Michigan Micro Loan Fund has made anywhere from 2-4 loans of a few thousand dollars each per month. The expectation is to provide much-needed financing for 24 to 48 fledgling local businesses at a time when loans for small businesses are almost non-existent.

Source: Ingo Schneider, President & CEO of LED Optical Solutions
Writer: Jon Zemke