The recently announced Pure Michigan Business Connect initiative promises to leverage about $3 billion in seed capital and new revenue streams for Michigan-based start-ups, thanks to some local heavy hitters stepping up to the plate.
"What we're really saying to the Michigan business community is we understand Michigan business and we know where the opportunities are to help grow your business," says Mike Shore, director of corporate communications for the Michigan Economic Development Corp.Pure Michigan Business Connect
is a public-private partnership between several state agencies such as the MEDC
, Huntington National Bank, Stage 2 Innovations
, DTE Energy, Automation Alley
and Export-Import Bank. It will focus on Gov. Rick Snyder's economic gardening policy that helps local businesses grow by connecting them with customers, investors and talent.
"We're looking to be a matchmaker for companies that are looking for sales," Shore says.
The initiative will be comprised of $100 million in MEDC
tax incentives and $80 million in financing through the Michigan Collateral Support and Loan Participation Programs to help attract 10 times that amount in private dollars. Huntington National Bank
is committing to make $2 billion in commercial and small business loans for Michigan-based companies over the next four years. Export-Import Bank
plans to work with the MEDC to invest $187 million in Michigan-based small businesses by 2015.DTE Energy
and its subsidiaries are pledging to purchase $500 million in goods and services from state-based suppliers over the next five years. Stage 2 Innovations
, a venture capital fund working with Automation Alley
, is aiming to invest $100 million into second stage companies poised for significant growth.
Source: Mike Shore, director of corporate communications for the Michigan Economic Development Corp
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com