Incentive Programs

A large variety of programs are available in multiple categories that offer finance options as well as access to support services.

Listed below are incentive programs grouped in seven categories involving:

Business Development
Brownfield Development
Commercial Real Estate
Economic Development
Historic Preservation
Housing Development
Sustainable Development

Business Development

Business Accelerator Network for Southeast Michigan

Supported by a 3-year, $3 million grant from the New Economy Initiative for Southeast Michigan, the Business Accelerator Network for Southeast Michigan is a new region-wide network for building and retaining new business in southeast Michigan comprised of Ann Arbor SPARK, Automation Alley, the Macomb OU-INCubator and TechTown. The Business Accelerator Network for Southeast Michigan works collaboratively to attract and retain business in Southeast Michigan by sharing best practices, hosting events focused on addressing issues and goals that impact the region, supporting business plan development and leveraging funding to grow business in the region. Among the network's strengths are education and coaching available to all stages of entrepreneurs, funding available to qualified clients, strong university relationships, and a high number of dedicated volunteers. For more information, visit http://www.bansem.org.

Accelerate Michigan Innovation Competition

The Accelerate Michigan Innovation Competition is an international business plan competition designed to highlight Michigan as a robust and vibrant venue for innovation and business opportunity. It targets mid-to-late stage business startups with potential to generate an immediate impact on Michigan’s economy, as well as student concepts with longer-term business viability. The Competition is led by the newly formed Business Accelerator Network for Southeast Michigan, the Business Leaders for Michigan, the University Research Corridor (Michigan State University, the University of Michigan, and Wayne State University), and the New Economy Initiative.

The competition fuels innovation-based business growth by uncovering the best and brightest new business concepts from local and global entrepreneurs, exposing those opportunities to potential investment capital, and fostering their growth within Michigan. With more than $1 million in cash winnings, plus in-kind awards of services, staffing and software, the Accelerate Michigan Innovation Competition is the world’s largest business plan competition. For more information, visit http://www.acceleratemichigan.org.

Detroit Economic Growth Corporation (DEGC)

Detroit Economic Growth Corporation is a non-profit organization that works closely with the City of Detroit and other partners to support existing businesses and to bring new companies and investments to the city. The DEGC also acts as staff for a number of public authorities whose board members are appointed by the Mayor and approved by Detroit City Council. Each of those entities has distinct responsibilities and powers, but they are very closely related. By using a common staff, the work of these public authorities is well coordinated and avoids duplication. DEGC also works directly for the City of Detroit under contract and manages economic development efforts funded by private and foundation contributions, grants, and contracts. For more information, visit http://www.degc.org or call 313. 963.2940.

Creative Corridor Investment Fund (CCIF)

The Detroit Economic Growth Association (DEGA) created the CCIF to attract and retain creative businesses to Detroit’s Creative Corridor. In partnership with the Detroit Investment Fund (DIF), DEGA and DIF identified $2.5 million to assist building owners and innovative companies that are located in the Creative Corridor. Detroit's Creative Corridor covers the Central Business District and Midtown, including New Center. The goal is to create 125,000 sq. ft. of office space designed specifically for companies in the creative industries and 400 new jobs in Detroit over the next five years. The Fund also expects to create new centers of dense commercial activity that attract creative talent and companies. The two programs involve matching funds for building owners to prepare existing spaces for tenants in creative industries and rent and parking subsidies for eligible businesses that are bringing new creative jobs to the Corridor. For more information on the Creative Corridor Investment Fund (CCIF), visit http://www.degc.org/ or call 313.237.6096.

Detroit Business to Business - D2D

D2D is about connecting buyers and sellers in Detroit. Based on models in other cities such as New York, Philadelphia and San Jose, the program is an approach that can be integrated into Detroit’s business culture and business support community. Source Detroit (formerly Buy Detroit) is the Midtown Anchor procurement initiative that has been successful and a valuable pilot for a citywide program. Midtown Detroit, Inc. works closely with the anchors to identify their opportunities and with DEGC staff identify potential Detroit vendors. Activities of the D2D program include:

Programs to help connect buyers and sellers through matchmaking tools (e.g. the database, networking, "meet the buyer" events, procurement chief roundtables)
A supplier technical-assistance program (e.g. bidding, e-procurement, business planning) to help local suppliers get stronger and compete for contracts
Collaborative events/programming with other agencies looking to match Detroit businesses with opportunities outside of region and state

D2D Program partners include Source Detroit Midtown Anchor Procurement Initiative, Detroit Area Chamber of Commerce Connection Point and Michigan Economic Development Corporation’s Pure Michigan Business Connect (PMBC).

For more information, visit http://www.degc.org or call 313. 963.2940.
For additional information about the individual initiatives visit:
- Source Detroit at https://sourcedetroit.com or contact by email at [email protected], http://connectionpointdetroit.com.
- Connection Point at http://connectionpointdetroit.com or contact [email protected].
- Pure Michigan Business Connect at http://www.michiganadvantage.org/Business-Connect/ and its free B2B portal for all Michigan businesses located at http://www.puremichiganb2b.com/b2b-web/#dashboard.

The Green Grocer Project (GGP)

The Green Grocer Project will help create competitive, sustainable grocery offerings in Detroit neighborhoods while providing improved fresh food access to Detroit residents. The Green Grocer Project was launched with a $500,000 seed grant from The Kresge Foundation. The Detroit Economic Growth Corporation (DEGC) manages the program, which includes a Grocer Clearinghouse Program for existing store operators and operators interested in making new investments in Detroit; Technical Assistance Program to participating grocers in addressing operational and store development needs; and Funding Assistance Program for store improvements.

The Green Grocer Project program is open to grocers whose stores are located within the boundaries of the City of Detroit and which offer significant merchandise in the following categories: produce, meat, dairy, baked goods, and grocery items. Visit http://www.degc.greengrocerproject.com or for full program details and eligibility requirements, please contact the DEGC Green Grocer Project desk at 313.237.4628, or email [email protected].

Manufacturing Diversification

DEGC is focusing its business attraction and retention efforts on several key industries that include medical devices, wind energy, defense, and aerospace. DEGC has specific business development programs for manufacturers and other businesses. The Michigan Manufacturing Technology Center and the University of Michigan are working with the Michigan Economic Development Corporation (MEDC) to assist manufacturers in developing market diversification strategies. Through the effort, local manufacturers with a potential to diversify may be eligible for a matching grant from the Economic Development Job Training program to assist in the diversification process. To learn more visit http://www.michiganadvantage.org/Diversification/.

Renewable Energy Detroit Initiative (REDI)

The Renewable Energy Detroit Initiative mission is to attract and grow a Detroit-based cluster of energy-related component manufacturers, and industry service providers. The REDI initiative focuses on Wind, Solar, Battery, and specific application areas (includes waste-to-energy, fuels/bio, lighting, energy efficiency, and advanced manufacturing). Partners of the REDI program include public utilities, NextEnergy, TechTown, the Detroit Regional Chamber, the Michigan Energy Office and the Michigan Economic Development Corporation).

Services offered involve finding affordable and functional real estate that supports manufacturing needs and connections to the local, regional, and international supply chain. REDI has a network of partners who specialize in project development resources (such as technology validation, procurement opportunities, and employment training programs) and can offer guidance through the various approval processes at the local and State levels. For more information, visit http://www.degc.org/ or contact Tracie Tillinger at 313-963-2940 or via e-mail at [email protected].

REVOLVE Detroit

REVOLVE is a collaborative program of the Detroit Economic Growth Corporation (DEGC) that partners with local leaders, building owners, entrepreneurs, and artists to activate vacant storefronts with transformational businesses and art installations. The goal of the program is to foster the evolution and vibrancy of Detroit's neighborhood business districts.

REVOLVE is currently in its pilot phase. DEGC is currently learning what it takes to make a successful pop-up and soliciting as many creative, entrepreneurial ideas as possible in order to grow and launch a full-time program next year. For more information, visit [email protected] and follow Revolve Detroit on Facebook and Twitter for the latest updates and opportunities.

SmartBuildings Detroit Grant Program and Green Fund Loan

The Economic Development Corporation of the City of Detroit (EDC) is implementing the SmartBuildings Detroit Program using a $1.9 million SmartBuildings Detroit Program, and loans from its $1 million revolving loan Green Fund, for energy efficiency improvements in privately owned buildings in the Woodward corridor. Building owners may apply for grants and loans totaling up to $100,000 for eligible energy-saving projects.

Applicants will be required to leverage grant funds 3:1 at a minimum, with money from other sources and Green Fund loans limited to 40% of total eligible project costs. In general, any improvements identified in an energy assessment for the building are eligible. These might include:

Building Enclosures Insulation and weatherization, glass replacement.
Building Systems Interior and exterior lighting and electrical, HVAC, low flow water/plumbing.
Alternative Energy Generation Solar panels, geothermal, wind, & water systems.

The program area is generally bounded by the Detroit River on the south, the Lodge Freeway (M-10) on the west, Seward on the north and the Walter Chrysler Freeway (I-75) including the Eastern Market area - on the east. Property owners and tenants of commercial buildings within the program area, including owners of mixed-use projects, and residential projects with 5 or more units.

The program is encouraging businesses to invest in energy saving updates to their properties by offering a combination of grants and loans to eligible businesses. These incentives and financial commitments from owners will pay off in energy savings and reduce operating costs.

Two forms of assistance are available: loans and grants. They may be used separately or together.

1. The SmartBuildings grant is an incentive that can leverage other private and public sources of funding at a 3:1 ratio up to the maximum assistance of $100,000 per project. Example: For a $60,000 energy improvement project, a property owner could apply for a $15,000 incentive grant; and she would be required to finance the additional $45,000 through other sources.

2. The Green Fund will offer loans to cover 40% of eligible project costs, up to the maximum assistance of $100,000 per project. Example: For the same $60,000 energy improvement project, the property owner could apply for a $24,000 Green Fund loan. The loan would be considered part of the 3:1 match. If an owner also received a $15,000 incentive grant, she would be responsible for the remaining $21,000 for the project.

The programs are funded by a U.S. Department of Energy grant to encourage the installation of energy saving improvements for commercial, institutional and public buildings in downtown Detroit to optimize the performance of city real estate. The program leverages other incentives and energy optimization programs available to commercial property owners. The additional incentives and programs include DTE Your Energy Savings, DTE Solar Currents, Michigan Saves with Enterprise Detroit Loans, Michigan Pollution Prevention Loans, Section 179 D Energy Tax Incentives, and Detroit Public Lighting Department EnergyWise Program. SmartBuildings Detroit is part of the statewide BetterBuildings for Michigan Program. For more information, visit www.degc.org, or contact the SmartBuildings Detroit Program at 313.963.2940.

Detroit Development Fund (DDF)

DDF is a non-profit organization and a certified community development financial institution formed with a mission to assist in the revitalization of economically distressed areas in the city of Detroit. Detroit Development provides loans and technical assistance to small business owners, developers, building owners, contractors, and subcontractors who are unable to acquire certain levels of capital necessary from traditional financing sources. DDF offers products and services to assist in revitalizing businesses and neighborhoods in Detroit creating economic equity, and promoting a healthy environment.

The Detroit Development Fund manages two loan programs. The first loan program is capitalized with PRIs (Program Related Investments) from the Ford and Knight Foundations, a line of credit from LaSalle Bank, and grants from Ford, Kresge, and the New Economy Initiative. The second loan program is the Detroit Community Loan Fund (DCLF), a private, for-profit entity in which Detroit Development Fund is a minority investor. The DCLF is a small business-lending fund organized by Invest Detroit.

Detroit Development Loan Programs

“Late Stage” Pre-Development Loans:

DDF makes investments/loans for predevelopment or preconstruction purposes in affordable housing projects, multi-family rehab, and other projects including commercial developments that stimulate neighborhood revitalization. These loans bridge the gap between the early stages of pre-development and the stage where the project could qualify for pre-construction or construction financing. Detroit Development will make predevelopment loans available to both for-profit and non-profit developers who have a track record and capacity, but the lack of cash to move the project forward and/or the balance sheet strength to leverage additional financing. To qualify for a pre-development loan, the project should meet one or more of the following criteria:

Project located in or adjacent to Detroit neighborhoods that are predominantly lower-income
Create for-sale or rental housing that is affordable to low/moderate income households in Detroit
Create homeownership opportunities for lower/moderate-income households in Detroit
Create jobs for lower-income Detroit residents
Strengthen access to community services for lower-income Detroit residents
Strengthen commercial districts in lower income Detroit neighborhoods
Otherwise economically or socially strengthen predominantly lower-income Detroit neighborhoods

Loan information:

Loan amounts usually range from $50,000 to $200,000
Loans will generally have repayment terms of 12 to 48 months
Loans may be written with interest only features for a portion of the loan term

Pre-Development Loan proceeds are not limited to, but in general, can be used for land acquisition; architectural drawings; eEnvironmental remediation; purchase of materials prior to construction; and advance pre-sale marketing efforts. For more information on the Detroit Development Loan Program - Pre-Development Loan Program, visit http://detroitdevelopmentfund.com or call 313.784.9547.

Small Business Loan Program

The purpose of the DCLF and DDF’s small business-lending program is to support the growth of Detroit-based business, particularly those owned by entrepreneurs of color and by women. It targets small businesses with growth potential and management insight that lack sufficient collateral or owner equity to qualify for financing from mainstream lenders. To qualify for a small business loan, a business should meet the following criteria:

Business must be located in the City of Detroit
Have annual sales of at least $100,000; and have fewer than 50 employees
Have been in existence for at least 12 consecutive months
Have demonstrated growth potential; and have the ability to continue to grow and retain or add new jobs
Have been unable to obtain sufficient financing from traditional lending sources

Loan information:

Small business loan amounts range from $50,000 to $150,000
Most loans will have terms of 24 to 84 months, depending on use of funds

**Exceptions may be made to the length of time in business and annual sales criteria for franchises or in other situations approved by the loan committee.

DDF's Small Business Loan Program proceeds can be used for most business purposes, including but not limited to: working capital for expansion, equipment financing, accounts receivable financing, business acquisition, marketing/new product development, sales expansion, physical plant expansion, and improvements to manufacturing system. For more information on the Detroit Development Loan Program - Small Business Loan Program, call 313.784.9547or visit http://detroitdevelopmentfund.com.

Pre-Construction Loan Program

DDF anticipates that most borrowers will be small to medium-sized developers, rehabbers, and contractors. Also considered are projects being developed by non-profit developers, including community development corporations and faith-based institutions with proven track records. Detroit Development will make pre-construction loans into real estate development projects that can yield positive social impact in low and moderate-income Detroit neighborhoods. To qualify for a pre-construction loan, projects should meet one or more of the following criteria:

Project is located in or adjacent to Detroit neighborhoods that are lower income
Create for-sale or rental housing that is affordable to low/moderate income households in Detroit
Create homeownership opportunities for low/moderate income households in Detroit
Create jobs for lower income Detroit residents
Strengthen access to community services for lower income Detroit residents
Strengthen commercial districts in predominately low to moderate income Detroit neighborhoods
Otherwise economically or socially strengthen predominantly low/moderate income Detroit neighborhoods

Loan information:

Pre-construction loan amounts range from $50,000 to $200,000
Most loans will have terms of 6 to 24 months

Pre-Construction Loan proceeds can be used for infrastructure improvements, construction of models, and façade improvements. For more information on the Pre-Construction Loan Program, visit http://detroitdevelopmentfund.com or call 313.784.9547.

Contractor Lines of Credit Loan Program

DDF’s contractor lines of credit will provide financing for contractors that are related to a specific contract or purchase order. To qualify for a contractor line of credit loan, projects should meet one or more of the following criteria:

Similar to Small Business Loan program criteria
Have 1 to 2 years of experience or have completed MSHDA Contractor Assistance Program, or similar program
Have contract or purchase order to perform work
Will use Detroit residents to complete portions of contract

Loan information:

Contractor lines of credit amounts usually range from $30,000 to $100,000
Draws on the line of credit will be used on work completed by the contractor; contractor’s project will be monitored
The lines will generally have terms lengths of 6 to 12 months
The lines will generally be structured with interest only payments with principal recovery as the contractor receives payments

**Exceptions may be made to revenue and length of time in business criteria, depending upon the specific project and the company paying the contractor for the service.

Contractor lines of credit proceeds can be used to finance payroll through the accounts receivable collection period, purchase materials, and cover operating expenses. For more information on the Detroit Development Loan Program - Contractor Lines of Credit Loan Program, visit http://detroitdevelopmentfund.com or call 313.784.9547.

Michigan Saves Commercial Loan Program

Michigan Saves and DDF have partnered in a loan program that allows businesses to save money and energy with financing energy efficient upgrades such as the installation of new lighting, food storage/cooking equipment, refrigeration, or comprehensive renovations to the building. Interest rates are as low as 1.99% if total energy usage is cut by at least 20%. To get started, business owners must complete the pre-qualification application on the Michigan Saves website at http://www.michigansaves.org/Customers/CommercialLoanProgram.aspx. To qualify for a Michigan Saves Commercial Loan, projects should meet one or more of the following criteria:

Commercial buildings in the city of Detroit owned or occupied by local businesses or nonprofit organizations.
Borrower must own the building, leases not eligible

Loan information:

Michigan Saves Commercial Loan amounts range from $10,000 to $150,000
Flexible term up to 7 years based on findings in energy audit

The Michigan Saves Commercial Loan can be used a la carte - Various pre-screened eligible measures found at
(http://www.michigansaves.org/Portals/0/Commercial/Eligible%20Measures%20Brochure.pdf) and Whole Building Option. For more information on Michigan Saves Commercial Loan Program, visit http://detroitdevelopmentfund.com or call 313.784.9547.

Detroit Micro-Enterprise Fund (DM-EF)

The DM-EF is a nonprofit corporation that provides support for small businesses in the Detroit area by allowing them to obtain Microloan financing when traditional financing sources are not available. The Fund works with the Detroit Regional Economic Partnership, Michigan Small Business and Technology Development Center, Wayne County Economic Development Corporation, Vanguard/Milwaukee Junction Business Association, and Wayne State University. For more information on the Detroit Micro-Enterprise Fund (DM-EF), call 313.263.4032 or visit http://www.detroitmicroenterprisefund.org.

The Detroit Food Movers Fund

This pilot program is designed to put mobile distribution vehicles on the streets of Detroit to provide fresh fruits and vegetables to residents who otherwise would not have access to these products. The loans are for the purchase of the trucks and inventory. You may request up to $15,000 to purchase and outfit a truck (ex. shelving, logo painting, food inventory, start-up costs) or $5,000 maximum for food inventory and other start-up costs. For more information on Detroit Micro-Enterprise Fund's Detroit Food Movers Fund, call 313.263.4032 or visit http://www.detroitmicroenterprisefund.org.

The Dm-ef Core Loan Fund

The core program provides micro-loans to start-up and established small businesses that lack access to traditional financial sources in Detroit, Hamtramck, Highland Park, Ecorse, River Rouge, Pontiac, and Lincoln Park. Loans up to $10,000 for start-ups and up to $35,000 for established firms (2+ years) are available. For more information on Detroit Micro-Enterprise Fund's Dm-ef Core Loan Fund, call 313.263.4032 or visit http://www.detroitmicroenterprisefund.org.

The Green Enterprise Fund

This program is designed to provide funding for start-up and established businesses that are looking to build an environmentally sustainable business in the cities of Detroit, Hamtramck, Highland Park, Ecorse, River Rouge, Pontiac, and Lincoln Park. Loans up to $10,000 for Start-ups and up to $35,000 for established firms (2+ years) are available. For more information on Detroit Micro-Enterprise Fund's Green Enterprise Fund, call 313.263.4032 or visit http://www.detroitmicroenterprisefund.org.

The Wayne County Urban Loan Fund

The loan program for small businesses in Wayne County provides wrap-around funding. Bank loans of 50% are supplemented by up to 40% from the Loan Fund and at least 10% from the business. Funds can be used for fixed assets to expand and modernization to increase competitiveness in the current economy. For more The Women's information on Detroit Micro-Enterprise Fund's Wayne County Urban Loan Fund, call 313.263.4032 or visit http://www.detroitmicroenterprisefund.org.

The Women's Empowerment Fund

This program is designed to provide funding for start-up and established businesses that are looking to promote women entrepreneurs in the cities of Detroit, Hamtramck, Highland Park, Ecorse, River Rouge, Pontiac, and Lincoln Park. Loans up to $10,000 for start-ups and up to $35,000 for established firms (2+ years) are available. For more information on Detroit Micro-Enterprise Fund - Women's Empowerment Fund, call 313.263.4032 or visit http://www.detroitmicroenterprisefund.org.

Family Tree Loans

Family Tree Loans is a group of financial, legal and title experts, and licensed practitioners who have been supplying documents for family, friends, peer to peer, and social loans for over five years. Family Tree Loans provides facilitating support when a person is considering a loan from family and friends to start a business, lending money to family or friends, or determining whether to enter into a financial transaction. Family Tree Loans can expertly assist you by asking the right questions, then providing self-help documents, which will protect the agreements you make. For more information, visit http://www.familytreeloans.com or call toll free 1.877.PEER.LOAN.

Hatch Detroit

Hatch Detroit is a vehicle to champion and support independent retail businesses in Detroit through funding, exposure, education, and mentoring. The non-profit organization gives away $50,000 in cash and a suite of free services to the winner of its Hatch Detroit contest. Submissions of retail business plans are accepted until each year’s deadline. The winner of the Hatch Detroit Retail Business Contest is decided by a combination of the public vote and Hatch Detroit judges’ votes. The public vote is weighted 75% and the judges’ vote is weighted 25%. To learn more, including the guidelines for submitting a plan, go to http://www.hatchdetroit.com or email [email protected].

Hebrew Free Loan Business Initiative Stimulus

Tech Town and Hebrew Free Loan have joined together to identify and provide short-term loans to Jewish entrepreneurs committed to remaining in Southeast Michigan. TechTown will be responsible for identifying loan candidates who have viable business ideas, have successfully completed a TechTown FastTrac program, or are currently enrolled in TechTown's two-year SmartStart business accelerator program. Candidates who are granted a Hebrew Free Loan will also receive access to TechTown's comprehensive entrepreneurial support system, which includes business coaching, mentoring, workshops and space for lease. Initially, loans will range between $1,000 and $25,000. For more information on Hebrew Free Loan Business Initiative Stimulus, visit http://www.hfldetroit.org/small-business.php or http://techtownwsu.org/new-funding-partnership-with-hebrew-free-loan-fund or call TechTown at 313.879.5250.

Goldman Sachs 10,000 Small Businesses Mini MBA Program

A free resource for small business owners called Goldman Sachs 10,000 Small Businesses. The program is a free three-month "mini MBA" program for small business owners whose companies have at least $150,000 in revenue each year, and a few full-time or part-time employees. Accepted participants in the program attend classes and workshops, are part of a nationwide Goldman Sachs 10,000 Small Businesses network and receive free individualized assistance after the formal education ends, among other benefits. It is the perfect program for anyone who owns and runs a small business and would really like to take to the next level, but is not sure of the next steps.

You can learn more about the Goldman Sachs 10,000 Small Businesses Mini MBA Program via this video or by registering for two webinars scheduled on Monday October 29 at 4pm, or Tuesday, October 30 at 5pm. The application deadline for the February-May 2013 class is November 5. Register here.

Invest Detroit

Invest Detroit is a leading source of private sector gap financing that utilizes a variety of funding tools to support economic and community development in underserved communities primarily in the City of Detroit. Invest Detroit and its related entities were formed to facilitate funding from the public, private and foundation sectors and to address targeted needs of the communities it serves. Representing $110 million in funds and tax credits, Invest Detroit serves as a platform to meet a broad range of financing needs to support business expansion and real estate development, the creation and retention of jobs, and the revitalization of distressed areas.

Invest Detroit represents the vision of the Board of Directors and management of the Detroit Investment Fund (DIF), which was created and funded in 1995 by members of Detroit Renaissance now known as Business Leaders for Michigan. In 2010, the DIF Board and management team enhanced and transitioned the capabilities of DIF to create Invest Detroit, which serves as an umbrella entity for DIF and other for-profit and non-profit managed funds. The efforts of Invest Detroit are intended to promote job creation, expansion of the tax base and an improved quality of life for the communities it serves. Invest Detroit’s financing tools support a variety of needs including business expansion and purchase of equipment, real estate development and redevelopment, predevelopment costs, neighborhood retail, emerging business’ development costs, and New Markets Tax Credits. Loans for strategic projects are considered when the potential exists for a long-term, clear benefit, which is critical to the economic development of the City of Detroit. This emphasizes the Fund’s commitment to economic revitalization by financing projects that would likely not be completed without the participation of Invest Detroit.

Invest Detroit invests in eligible projects or companies from several different funding sources including Detroit Investment Fund (DIF) , New Markets Tax Credits (NMTC), Lower Woodward Housing Fund (LWHF), Predevelopment Loan Funds, Urban Retail Loan Fund (URLF), and First Step Fund. The economic development efforts of Invest Detroit have resulted in 2,000 jobs created or retained, 1,490 housing units created or renovated, 2,230,657 residential square feet developed, 1,626,010 commercial square feet developed, and 40,000 retail square feet developed. For more information, call the Invest Detroit office at 313.259.6368 or visit http://www.investdetroit.com.

Business & Equipment Loans

Financing from business and equipment loans may be utilized for the growth of commercial and industrial businesses in the City of Detroit. Industries involved include manufacturing companies, distribution and logistics companies, service companies, and others. The transaction range is $500,000 to $2.5 million for business expansion, capital improvements, purchase of equipment, purchase of real property, working capital, and restructuring of existing debt. Loans of this type will typically be subordinated and are intended to assist the owner in meeting the financing requirements of a traditional lender. Financial types considered are term loans, mezzanine financing, bridge loans, construction loans, and commercial mortgage real estate loans. General loan criteria includes a business plan which demonstrates that the future financial results of the company will service the senior and capital debt, and the business must have experienced successful management with 3 years of profitable operating experience. For more information on Invest Detroit's Business & Equipment Loans, visit http://www.investdetroit.com or call 313.259.6368.

Detroit Tecchnology Exchange

Partners TechTown, Invest Detroit, and Bizdom (an entrepreneurship accelerator that helps entrepreneurs launch, fund and grow innovative, tech-based startups in Detroit and Cleveland) have joined together to create the Detroit Technology Exchange, an initaitive focused on the development of talent, technolgy, deal flow and cutting-edge startups. The exchange is supported through a $1 million grant from the Michigan Startegic Fund and will be dispersed over a two-year period. The funding is aimed at leveraging existing economic development investments from organizations like the New Economy Initiative for Southeast Michigan to continue the development of Detroit's new economy.

The Detroit Technology Exchange consists of four programs geared toward talent retention/attraction, exploiting disruptive technologies, creating robust deal flow, and supporting the early stage startups. The four programs include:

Integrated Ecosystem Services: This program will institute practices like monthly portfolio reviews to identify opportunities for collaboration and critical marketing and design assistance for companies. The idea is to fill the gaps in the city's entrepreneurial ecosystem and help participating firms attract investment.
Launch Detroit: A summer boot camp for aspiring entrepreneurs in college (both graduate and undergraduate) that want to launch tech startups. The 10-week program will provide a stipend to participants and work to connect them with the city's entrepreneurial ecosystem. It aims to encourage young talent interested in technology to either remain in Detroit or move to the region.
D-Venture: This executive-in-residence program will bring selected entrepreneurial-minded professionals to Detroit to create startups out
of underutilized or underdeveloped intellectual property. Each participant develops a business plan, acts as CEO, raises seed capital, and receives an annualized salary for six months to one year.
Detroit Technology Exchange Fellows: This fellowship program will insert individuals into the Motor City's entrepreneurial service organizations and startups. The plan is to infuse high-quality, mid-level talent to Detroit's entrepreneurial ecosystem. It will provide six fellows with an annualized salary over two years.

Emerging Business Loans

Micro-loans are available for emerging and start-up service, product, and device and technology businesses led by management teams that have relevant experience and that have successfully completed a training program through a qualified regional business incubator/accelerator. Loan recipients receive business-to-business introductions and business mentoring from individuals with senior level expertise. Additionally, a network of sponsors and partners will assist in fostering demand and creating opportunities for companies that have received micro-loans through this program.

Loan applications must be submitted by a qualified business incubator/accelerator representing the company as its sponsor. Loans range from $10,000 -$50,000 and can be used for equipment, inventory, limited tenant improvements, corporate formation and legal issues. Available loan types include Senior Term Loans, Subordinated Term Loans (balloon), Working Capital Lines of Credit, and Convertible Notes with Warrants. Loan requirements are:

Borrower(s) must provide a written business plan that is sponsored and submitted by a qualified business incubator/accelerator to the First Step Fund. Requested information includes financial projections for the business being financed that demonstrates the viability of the business with detailed budgets and demonstrated repayment capacity. Plans must also include detailed marketing, financial and operations plans.
Borrower(s) must have a personal investment in the project.
Completion of predevelopment/start-up work and project timeline.

Qualified Sponsors’ Training Programs include TechTown SmartStart, TechTown FastTrac, SPARK Entrepreneur Boot Camp, TechTown and SPARK Business Accelerators, and TechTown and SPARK Regional Incubator Networks, and TechTown and SPARK Wet Lab Incubators. For more details about Invest Detroit's Emerging Business Loans, visit Invest Detroit at http://www.investdetroit.com or call 313.259.6368.

First Step Fund

The Fund, representing a partnership of Invest Detroit Foundation, TechTown, Ann Arbor SPARK and Automation Alley, supports a revolving loan pool that provides financing to emerging and newly formed small businesses in southeast Michigan, which have successfully completed a training program through a qualified regional business incubator/accelerator. The Fund support is meant to address the deficit of financing in the marketplace and to promote economic development by identifying, nurturing and fostering demand for early stage, commercially viable businesses resulting in job creation and increased tax revenue for the region.

The First Step Program gives preference to businesses owned by women and minorities and businesses with the highest potential to employ women and minorities. First Step Fund applications must be submitted by a qualified business incubator/accelerator representing the company as its sponsor. Financing types include loans and convertible notes with warrants ranging from $10,000 to $50,000. Investment terms include a defined repayment program (with option to convert to equity in most cases), two-year term, 12% interest, and 25% warrant coverage. The borrower must attempt to obtain a commitment from a traditional source of financing and preferably, have matching investments from other investors. For more information, call the Invest Detroit office at 313.259.6368 or view their website at http://www.investdetroit.com.

Invest Detroit Foundation (IDF)

IDF is a 501(c) (3) organization and certified Community Development Financial Institution formed exclusively for the purpose of receiving and administering funds for charitable, educational and scientific purposes. IDF promotes a higher quality of life for distressed communities, primarily in the City of Detroit by attracting new industry, encouraging the development of business, housing, transportation and other community resources. IDF supports this change by providing loans and financial assistance to qualified applicants to encourage revitalization and community development. In concert with operating the loan programs, IDF also conducts programmatic activities that include planning, spearheading and developing strategies for urban revitalization. The impact of the IDF loan programs includes the creation of jobs and training to the unemployed and persons of low income, and providing quality housing for the low-income community.

IDF Funds are financing resources aimed at encouraging projects where the necessary financing is not available from traditional sources, or may be available, but at high rates and restrictive terms. Financing may also be unavailable because of the poor credit risks of financing a project in the designated area. Projects will also be evaluated based on whether they have received support from local community groups, institutions, and public agencies. Loans and the repayment of funds are offered upon terms and conditions that are not available from traditional private and public financing sources. IDF Loan Programs include Lower Woodward Housing Fund, Predevelopment Funds, and Urban Retail Loan Fund. For more information on the Invest Detroit Foundation, call 313.259.6368 or visit http://www.investdetroit.com.

Urban Retail Loan Fund (URLF)

URLF is a revolving loan program intended to stimulate economic growth and support for residential and neighborhood development in Detroit’s Greater Downtown area by providing loans to small- and medium-sized retail, service, and storefront businesses located in targeted areas including Midtown, Downtown, Riverfront, Eastern Market, and Corktown. These businesses, in turn, will provide necessary goods and services to the neighborhood, create and retain jobs, and improve the quality of life.

Created by the Detroit Investment Fund in partnership with the Michigan Economic Development Corporation (MEDC), URLF assists neighborhood businesses and drives additional economic activity in the community. To be considered for a loan under this program, applicants must be able to contribute meaningful owners’ equity in their projects, present a viable business plan, and demonstrate a successful track record.

Eligible businesses include retailers, service industries, and other storefronts with stable operations, demonstrated management strength, and successful business models. Eligible uses include working capital, purchase of inventory and equipment, and tenant improvements. Loans provided by the DURLF range from $50,000 to $500,000 with a preferred range of $100,000 to $200,000. For more information on the Urban Retail Loan Fund application process, loan terms, and eligibility, visit Invest Detroit at http://www.investdetroit.com or contact Mary Seaberg King at 313.259.6368.

Neighborhood Retail Loans

Neighborhood retail loans are available to small and medium-sized retail businesses that service neighborhoods in the Greater Downtown area, which include Midtown, Eastern Market, Corktown, Downtown, and the Riverfront. Industries serviced include retailers, service industries, and other storefronts. Loans ranging from $50,000 to$500,000 are considered for working capital, purchase of equipment, and limited tenant improvements.

Loans of this type are not intended to replace conventional bank and small business financing but to supplement it and to provide financing when alternatives are not available. Acquisition financing of investor-owned real estate is not eligible for consideration under the program. General loan criteria include a business plan that includes description of the business (including retail type), ownership, key managers and location, and marketing plan and assumptions. Additionally, applicants must contribute meaningful owners’ equity in their projects and demonstrate a successful track record. For more details, visit Invest Detroit at http://www.investdetroit.com or call 313.259.6368.

InvestMichigan! Fund

InvestMichigan! is a series of three funds focused on generating strong returns for investors and growing the next generation of Michigan companies. In order to support companies at different stages of development, the program offers three distinct investment vehicles involving the Mezzanine Fund, Growth Capital Fund, and the Michigan Opportunities Fund.

The Mezzanine Fund targets mezzanine debt and equity investment opportunities in lower middle market Michigan companies. Formed in partnership with the U.S. Small Business Administration, the Fund is managed by Credit Suisse’s Customized Fund Investment Group (CFIG) and Beringea.
The Growth Capital Fund targets lead and co-investment opportunities in venture capital and small buyout stage companies with growth characteristics across a range of sectors. The Growth Capital Fund is co-managed by Beringea and Credit Suisse’s Customized Fund Investment Group.
The Michigan Opportunities Fund targets lead investment opportunities in buyouts and growth equity investments in established companies across a range of sectors and is managed by Glencoe Capital LLC.

Visit http://www.investmichiganfund.com for more information on InvestMichigan! Fund or call 248.619.862.

Kickstarter

Kickstarter is the world's largest funding platform for creative projects. People pledge monetary support to projects from the worlds of music, film, art, technology, design, food, publishing and other creative fields. The support is not investing or lending, a project must reach its funding goal before time runs out or no money changes hands. Project creators keep 100% ownership and control over their work offering products and experiences that are unique to each project. Projects are big and small, serious and whimsical, traditional and experimental, inspiring, entertaining and unbelievably diverse. To learn more visit http://www.kickstarter.com/discover/cities/detroit-mi

Kiva Detroit

Kiva City is a program that extends microfinance to small businesses across America. Kiva Detroit, the first Kiva City, assists Detroiters in championing and lending to small businesses as well as to joining the Kiva Detroit lending team. To double the impact, loans to Kiva Detroit borrowers will be matched 1-to-1 by the Knight Foundation. Field partners such as ACCION USA, work at a local level to facilitate the loans while community groups like Michigan Corps build awareness among small business owners and refer them to the program. For more information, visit http://www.kiva.org/detroit.

Local Initiatives Support Corporation (LISC)/Morgan Stanley Small Business Loan Fund

A $10 million pilot program is offering low-cost, long-term financing between $250,000 and $2.5 million to small businesses in several U.S. cities including Detroit. Detroit LISC will serve the Detroit market. The loan fund uses the advantages of the SBA 504 Program to encourage economic development within a community by providing small businesses with financing to acquire major fixed assets for expansion or modernization. These assets can include the purchase of land (including existing buildings), the purchase of improvements, parking lots, and landscaping, and the modernizing, renovating, or converting of existing facilities.

The LISC/Morgan Small Business Loan Fund offers small business owners significant benefits, including:

Lower down payment.
Longer repayment
Below-market, fixed interest rate.
Projected income consideration
Secondary source of payment less critical

Small business eligibility requirements include, but are not limited to the following:

Must be in an eligible New Market Tax Credit (NMTC) census tract with high distress criteria
Must focus on job creation
Must have demonstrated support of the local community
Business is one that will contribute to the long-term development of a sustainable community
Demonstrated need for a NMTC subsidy
Owner occupied and for-profit

Full details regarding the Local Initiatives Support Corporation (LISC)/Morgan Stanley Small Business Loan Fund are available on the Detroit LISC web site at www.detroit-lisc.org. For any other questions, please contact Anthony Batiste, Program Officer, at 313-596-8222 ext. 13 or at [email protected].

Michigan 21st Century Investment Fund

The Fund focuses on identifying and investing in a diversified, high-quality portfolio of venture capital, private equity and mezzanine funds that intend to target investments in companies that are located in Michigan or have substantial operations within the State of Michigan. In addition, the program may opportunistically co-invest alongside select fund managers. It seeks to strengthen and diversify Michigan's economic base by fostering the creation and growth of new jobs, new businesses, and new industries within the State through investments in private equity, venture capital and mezzanine funds, as well as potential co-investments alongside these funds. The program is capitalized with $120.0 million of total commitments, including $6.0 million from Credit Suisse.

The Michigan 21st Century Investment Fund, L.P. is part of the overall 21st Century Jobs Fund initiative that was first announced in November 2005. Under this 10-year initiative, the State government decided to allocate up to $1.0 billion of proceeds from Tobacco Settlement monies to strengthen and diversify Michigan's economic base by focusing resources in three areas. Up to 40% ($400 million) of the amount allocated to the 21st Century Jobs Fund may be invested through the Capital Investment Program over the life of the 10-year initiative of which the Michigan 21st Century Investment Fund, L.P. is a part. The three components of the 21st Century Jobs Fund include:

A Capital Investment Program that seeks to make investments in qualified private equity, mezzanine and venture capital funds as well as potential co-investments alongside these funds.
A Competitive-Edge Commercialization Program that seeks to invest in the commercialization of products, processes and services as well as basic and applied research.
A Commercial Lending Program, which seeks to stimulate additional lending by financial institutions across the state by creating commercial loan enhancement programs.

For more information, visit http://www.michigan21stcenturyinvestmentfund.com or call Sean O'Donnell at 248.619.1871.

Michigan Certified Development Corporation (MCDC)

The Michigan Certified Development Corporation (MCDC) is a non-profit corporation certified by the U.S. Small Business Administration (SBA) to provide SBA 504 loan financing and SBA 7(a) loan packaging throughout the Great Lakes State. Do Good Things for Michigan is the goal of MCDC, the largest, most successful Certified Development Corporation (CDC) in Michigan. As part of their Do Good Things for Michigan campaign, the Michigan Certified Development Corporation (MCDC) has announced a new loan program to subsidize due diligence and certain closing costs for loans made in Detroit, Hamtramck, Highland Park, Pontiac, Flint, Saginaw and Benton Harbor - cities hardest hit during the economic downturn, both in Michigan and nationwide.

The new loan program will subsidize up to 1% of the loan amount not to exceed $5,000. This can be used for outside due diligence, such as appraisals and environmental cleanup and certain closing costs such as property surveys and title insurance as an example. The program aims to help boost the economic base of struggling cities critical for their economic recovery. MCDC and SBA will work together to make these loans available.

Michigan Advantage - Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation (MEDC) is a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, tourism, film and digital incentives, arts and cultural grants, and overall economic growth. MEDC offers a number of business assistance services and capital programs for business attraction and acceleration, economic gardening, entrepreneurship, strategic partnerships, talent enhancement, and urban and community development. MEDC, founded in 1999, also developed, and manages the state's popular Pure Michigan brand.

MEDC's website is packed with valuable information for businesses, entrepreneurs, and others interested in investing, working, and living in Michigan. For businesses, the website provides an array of support tools, some of which include: Business Connect Tool Kit, Retention and Relocation Tools, Marketing Toolkit, and access to Michigan's Commercial Property Information Exchange (CPIX). For entrepreneurs and innovators, the website offers resources for startups and small businesses, university assistance resources, and information on Accelerate Michigan, which is an innovation competition. Additional business incentives that are available include the Michigan Business Development Program, the Michigan Community Revitalization Program, a simplified and competitive business tax structure, Pure Michigan Business Connect, talent enhancement, cost-cutting and ombudsman services, federal contract assistance, financing assistance, patent/trademark work, and various local incentives. MEDC also lists many investment and lending programs specifically designed to help the capital community develop and attract equity investment and encourage traditional lending. To learn more about Michigan Advantage - Michigan Economic Development Corporation (MEDC), call 1.888.522.0103 or visit http://www.michiganadvantage.org/About-MEDC.

2013 Business Incubator Program

The Michigan Economic Development Corp. and the Michigan Strategic Fund issued a Request for Proposals to solicit proposals from high-performance business incubators or accelerators in Michigan to support entrepreneurs in launching and growing start-up technology companies throughout the state. The total funding available through the 2013 Business Incubator Program is $8.5 million. This funding may be used to support up to three years of services for each incubator or accelerator award made by the MSF. Maximum amounts allowed under this RFP vary depending on the location of the incubator or accelerator. Additional information on the RFP will be available beginning October 25, 2012 at this link: http://www.michiganadvantage.org/Public-Notices-Requests-for-Proposals/.

Border County Incentives PA 198 and PA 328

Eligible businesses that locate in a county that borders another state or Canada may qualify for special tax incentives. These counties include Berrien, Branch, Cass, Chippewa, Dickinson, Gogebic, Hillsdale, Iron, Lenawee, Menominee, Monroe, St. Clair, St. Joseph and Wayne.

A new warehouse, distribution, or logistic facility that locates in an eligible border county may receive a 50% reduction in property taxes through PA 198 of 1974 (as amended). The local unit of government is responsible for approving this incentive for one to twelve years. If approved, the eligible facility will pay roughly half of the taxes through an Industrial Facilities Exemption (IFE) instead of ad valorem property taxes. In order to qualify for this incentive, at least 90% of the facility, excluding the surrounding green space, must be used for warehousing, distribution, or logistic purposes and occupy a building or structure of at least 100,000 square feet in size. To apply for the incentive, the qualifying facility must create an Industrial Development District for their property and submit an application.

Eligible businesses that locate in a border county and receive approval from the Michigan State Treasurer and President of the Michigan Strategic Fund may receive a 100% personal property tax abatement on new investment under Persoanl Property Tax Relief in Distressed Communities, PA 328. The business must locate in a local governmental unit that is served by at least four of the following services: water, sewer, police, fire, recycling, trash. Businesses may apply for the exemption through their eligible local governmental unit.

For more information, contact the Michigan Economic Development CorporationSM (MEDC) Customer Assistance Center at 517.373.9808.

Community Development Block Grant Business Development Initiatives

Funds are used to provide grants to eligible counties, cities, villages, and townships, usually with populations under 50,000, for economic development, community development, and housing projects. Program business development administered by MEDC includes Direct Assistance to Business and Infrastructure: Business Development. Eligible under this activity would be financial assistance to private and for-profit businesses. There are five subcategories of projects eligible for direct assistance to private and for-profit businesses: machinery and equipment, job training, rail enhancement, small business expansion and utility/pipeline projects. Direct Assistance to Business projects will be evaluated on the following criteria: Minimum Leverage Ratio, Job Position Creation, Minimum Local Participation, Economic Impact, and Project Type, as further defined within the CDBG Application Guide.

Communities may request grants to provide public infrastructure improvements necessary for the location, expansion, and/or retention of a specific, for profit business firm(s) which is engaged in an economic base activity (e.g. manufacturing, point-of destination tourism, headquarter operations, major multi-state distribution facility). This program is restricted to infrastructure improvements tied to development activities that require additional infrastructure to create new economic opportunities and will result in the creation of full-time equivalent (FTE) positions, of which at least 51% of the created positions will be held by persons living in a LMI household. Business Development Infrastructure projects will be evaluated on the following criteria: minimum local participation, economic impact, and project type.

More specific information, including match and program requirements, can be found within the CDBG Application Guide that was approved by the Michigan Strategic Fund in June 2012. In order to receive consideration for CDBG approval, initial contact should be made with the appropriate Business Development Manager. For more information, contact the MEDC Customer Assistance Center at 517.373.9808 or visit our Website at www.MichiganAdvantage.org.

Michigan Business Development Program (MBDP)

The MBDP is a new incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans, and or other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment. The MBDP is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. The qualified new jobs must be held by Michigan residents and be in addition to those maintained in Michigan prior to the project. Eligible investment includes investment made by the business in Michigan in support of the project and approved by the MSF. Preference may be given to businesses in need of additional assistance for deal-closing and second stage company gap financing.

Any business seeking to qualify for MSF support on the basis of job creation must create a minimum of 50 qualified new jobs. If a project is in a rural county (a county with a population of 90,000 or less) or qualifies as a high-technology activity, in which case the business must create a minimum of 25 qualified new jobs. High-technology activities are defined in the Michigan Economic Growth Authority Act, Public Act 24 of 1995, although it does not include tool and die unless the eligible business meets a different high-technology definition. A commitment of staff, financial, or economic support by the local municipality is required for all projects. The MSF may consider the following factors when considering a project for MSF support: out-of-state competition, net-positive return to Michigan, level of eligible investment in the project, near-term projects with identified financial support, business diversification, and re-use of existing facilities. Additional factors include near-term job creation, level of wages for new jobs, employer provided benefits, strong links to Michigan suppliers, and whether the project is in a distressed or targeted community.

The MSF will not provide support under this program for retail or retention projects. MSF support for any project may not exceed $10,000,000. The program effectively replaces the MEGA brownfield and historic tax credits under the Michigan Business Tax. To find more information on the program provisions and guidelines, fees, and the process from application to reporting and compliance, view http://www.michiganadvantage.org/cm/Files/Fact-Sheets/MichiganBusinessDevelopmentProgram.pdf. To receive consideration for funding under the Michigan Business Development Program, initial contact should be made with your Local Economic Development Office or the MEDC Business Development Manager assigned to your territory. You may also contact the MEDC Customer Assistance Center at 517.373.9808 or visit our website at www.michiganadvantage.org.

Michigan Corporate Income Tax (CIT)

Michigan has replaced the Michigan Business Tax (MBT) effective January 1, 2012 with a new Corporate Income Tax (CIT). The new structure taxes C-Corporations at 6% on federal taxable income apportioned to Michigan. Other entities – individuals, partnerships, LLCs, etc. – have income flow to their personal income tax. The personal income tax (PIT) rate will remain 4.35%, dropping to 4.25% in 2013. The change reduces business taxes by an estimated 86%. All industries are in line for significant tax cuts, thus reducing operational costs and encouraging new investment in the state. Michigan's overall business tax climate ranking is now 12th in the U.S., according to the Tax Foundation. In isolating the corporate tax rankings, the Foundation's ranking of Michigan jumps to 7th from the previous level of 49th. The new, simplified tax system provides a significant broad-based reduction in business taxes and eliminates a laundry list of credits and deductions previously included in the MBT. However, credit agreements, called Certified Credits (such as Brownfield Tax Credit, Historic Preservation Credit, Renaisaance Zones Credit, etc.), executed before January 1, 2012 will be honored for the remaining duration of the agreement. For further information on the Michigan Corporate Income Tax (CIT), visit http://www.michiganadvantage.org or call 1.888.522.0103 or contact MEDC at 1.517.373.9808.

Impact on Existing Tax Credits Recipients

The new Michigan Corporate Income Tax (CIT) eliminates almost all tax credits; however, any taxpayer that has an existing credit (or a “certificated credit”) approved and executed before January 1, 2012 will be able to realize the full benefits of their credit. The certificated credits include all of the following: MEGA Credits (including standard, high-tech, rural and retention); Brownfield Credits; Renaissance Zones Credits;* Historic Preservation Credits; Michigan Film Credits, including infrastructure and production company credits and Michigan Early Stage Venture Investment Credits. The list also includes Photovoltaic MBT Credits; Anchor Jobs Credits; Defense Contracting MBT Credits; Anchor District Credits; Polycrystalline Energy Credits; Battery Production Credits; and Hybrid R&D Technology Credits. *Renaissance Zone Credits are limited to taxpayers with a development agreement executed between the taxpayer and Michigan Strategic Fund or that are part of a qualified collaborative agreement.

The tax reform will allow taxpayers to receive the benefits of their certificated credits by electing to continue to file the MBT for the duration of their credits. Companies may also opt-out of this option and simply file under the CIT if they would have a lower CIT liability compared to the value of their certificated credit under the MBT formula, but they would forego any remaining credits. Companies must determine if they want to continue to file the MBT in their first tax year ending after December 31, 2011, except for Brownfield and Historic Tax Credits. Once a company elects to continue to file the MBT, they must remain in the MBT until all their credits and any carry forwards are depleted. Taxpayers are encouraged to consult a CPA or tax attorney for professional assistance. For more information about the Impact on Existing Tax Credits Recipients, go to http://www.michiganadvantage.org/cm/Files/Fact-Sheets/TP_CertCredits.pdf or call the MEDC at 1.888.522.0103.

Michigan Emerging Technologies Fund (ETF)

The Michigan Emerging Technologies Fund (ETF) is designed to expand funding opportunities for Michigan technology based companies in the federal innovation research and development arena. To that end, the Small Business & Technology Development Center (SBTDC) through the Michigan Strategic Fund (MSF) is dedicating up to $1.4 million to match federal funding opportunities for exceptional commercial opportunities in Michigan.

The ETF was created to provide matching dollars to support commercialization of SBIR/STTR projects. The ETF will match 25% of Phase I SBIR/STTR awards up to $25,000, and 25% of Phase II SBIR/STTR awards up to $125,000. Companies must leverage third party commercialization funding to be eligible for ETF Funds. Before submitting an SBIR/STTR proposal to the federal government, a company must first secure a matching commitment from the SBTDC. A matching award from the SBTDC will be provided in the form of a grant upon proof of a successful federal award. Recipients of matching awards will be required to enter into an award agreement with the SBTDC and agree to use the funds only for allowed purposes in at least one of the Four Technology Sectors supported by the ETF. These sectors are Advanced Automotive, Manufacturing and Materials, Alternative Energy, Homeland Security and Defense, and Life Sciences. Preference will be given to those applicants who are able to demonstrate significant commercialization potential.

An ETF Award Recipient must be a Michigan company or have its principal place of business in Michigan prior to the disbursement of funds. Company may not have more than two (2) SBIR/STTR Phase II federal grants within the previous five years. Company may receive no more than two (2) ETF awards per 12 month period.For more information, see http://www.mietf.org or http://www.michiganadvantage.org/cm/Files/Fact-Sheets/EmergingTechnologiesFundMEDC.pdf or contact the MEDC Customer Assistance Center at 517.373.9808.

Michigan Manufacturing Technology Center (MMTC)

The Michigan Manufacturing Technology Center (MMTC) offers direct technical assistance to small and medium-sized manufacturers to connect them to the best manufacturing practices and technologies available. State and federal funding in combination with links to national industry groups, major manufacturers, automation equipment vendors, universities and research laboratories make it possible for MMTC to offer services that would not otherwise be affordable. MMTC services are delivered through the regional affiliates. Southeast Michigan is serviced by MMTC—Southeast & Headquarters, 47911 Halyard, Plymouth, MI 48170. For more information, visit the MMTC website at www.mmtc.org or call 888.414.6682 or contact the Michigan Economic Development Corporation^SM Customer Assistance Center at 517.373.9808.

Michigan NextEnergy Authority (MNEA)

The MNEA was created to promote the development of alternative energy technologies and to provide tax incentives for business activities and property related to the research, development and manufacturing of those technologies. The MNEA is responsible for certifying taxpayers and property as eligible for tax credits against the Michigan Business Tax (MBT) and/or exemptions from the General Property Tax Act. An alternative Energy Zone (AEZ) has been created within Wayne State University's Research and Technology Park in Detroit to promote the research development and manufacture of alternative energy technologies. Businesses engaged in one of those qualifying activities and located within the AEZ will enjoy the full range of Renaissance Zone tax benefits and may be eligible for a refundable payroll credit on their MBT. For more information, contact MEDC Customer Service Center at 517.373.9808.

Pure Michigan Venture Match Fund (PMVM)

The Michigan Strategic Fund (MSF) Board, under the umbrella of the 21st Century Jobs Fund Initiative, will be fostering the growth of innovative companies with the potential for high growth in Michigan by investing in the most promising, nationally competitive, commercialization opportunities. The PMVM program's objective is to oversee a competitive process to award funds that encourages economic diversification in innovative, competitive edge technology sectors. As early stage, innovative companies often require venture capital to help bridge critical stages of development and commercialization, the Pure Michigan Venture Match Fund program is offering to help bridge this capital gap to help companies develop technologies, grow innovative companies, diversify Michigan's economy, and create economic wealth in the state.

The PMVM Fund program that launched April 2, 2012, is soliciting applications from Michigan companies that have received an equity investment commitment led by a qualified Venture Fund for commercialization and growth purposes, to provide a match of the investment. Qualified and approved investments from $700,000 to $1,000,000 will be matched by a 50% ($350,000 to $500,000) investment from the PMVF Fund; and qualified and approved investments from $1,000,000.01 to $3,000,000 will be matched by a $500,000 investment from the PMVM Fund.

Only for-profit companies are eligible for funding through the PMVM Fund. Additionally, to be eligible, the applicant company must: be a Michigan based company AND be involved in one of the following competitive edge technologies as defined in Section 88a of the MSF Act: Life Sciences Technology, Advanced Automotive Manufacturing and Materials; Homeland Security and Defense; Alternative Energy; Information Technology; Agricultural Processing Technology; and/or any other innovative technology as determined by the MSF Board. The company must also have assigned investment term sheet(s) led by a qualified Venture Fund(s) of no less than$700,000 and no more than $3,000,000 AND demonstrate that funding led by a qualified Venture Fund(s) combined with the funding from the Pure Michigan Venture Match Fund program will cover commercialization, operational and growth costs of the Company for a minimum period of 12 months AND; demonstrate that the qualified Venture Fund(s)meets other criteria as stated in the Michigan Strategic Fund Board 21st Century Jobs Fund's Pure Michigan Venture Match Fund Program Process & Guidelines found at http://www.michiganadvantage.org/cm/Files/Pure_Michigan_Venture_Match_Fu....

Proposals may only be submitted electronically via email to the MEDC at [email protected]. Awards will be announced on a rolling basis. The MEDC will continue to accept applications until funding for the PMVM Fund is fully committed. For more information on the Pure Michigan Venture Match Fund (PMVM) program, visit http://www.michiganadvantage.org/Pure-Michigan-Venture-Match-Fund. Submit questions electronically to [email protected].

Small Business Credit Initaitive

Access to capital funding is available through new opportunities for small businesses in Michigan so they can grow and diversify. On January 14, 2010, Michigan was named the first state in the nation to win approval of approximately $79.1 million in federal capital funding to support our state's cutting-edge Capital Access, Michigan Collateral Support, and Michigan Loan Participation programs, part of the Michigan Business Growth Fund (MBGF) efforts. Since its inception, the program has committed approximately $20 million, which has sparked capital loans of more than $191 million to 23 companies.

Capital Access Program

The Capital Access Program (CAP), administered for The Michigan Strategic Fund (MSF) by Michigan Economic Development Corporation (MEDC), is an innovative program available to assist businesses with capital needs. The CAP uses small amounts of public resources to generate private bank financing, providing small Michigan businesses access to capital that might not otherwise be available. The loans are private transactions between the banks and the borrowers and can be long- or short-term, term loans, or lines of credit to finance most types of business, with the exception of the construction or purchase of residential housing, development of a casino, stadium or arena, or passive real estate. The maximum loan amount, which may be enrolled in CAP, is $5 million. Loans may not be used to refinance existing debt, must be for a new extension of credit and may not be used to finance the unguaranteed portion of a SBA-guaranteed loan. Eligible borrowers include most businesses located and legally authorized to do business in Michigan with no more than 500 employees, and must be a for profit institution. To date there are approximately 80 financial institutions in Michigan participating in CAP. For more information, visit http://www.michiganadvantage.org or call 1.888.522.0103.

Michigan Business Growth Fund - Collateral Support Program (MBGF-CSP)

The intent of the MBGF-CSP is to supply cash collateral accounts to lending institutions to enhance the collateral coverage of the borrowers. These accounts will cover all or a portion of a calculated collateral shortfall as described by the lending institution. Borrowers with a collateral shortfall will apply for coverage through the Michigan Economic Development Corporation (MEDC), which provides the administrative services for the Michigan Strategic Fund (MSF) program. If approved, the MSF will deposit the cash into an interest bearing account with that lender and the account will then be pledged as collateral on behalf of the borrower. Based on an amortization schedule, the MSF will draw down the account as the loan principal is paid. In the event of full default, the lender will have rights to the account less a liquidation fee. Eligible borrower criteria include:

Businesses that engage with a private lender for the purpose of acquiring a commercial extension of commercial credit and must exhibit a collateral shortfall according to the lender’s analysis.
Borrower must have no more than 750 employees, and otherwise comply with all state and federal requirements for the program.

The MEDC is now accepting applications for the Michigan Business Growth Fund - Collateral Support Program (MBGF-CSP). For program guidelines, lender facts and information, the application process, and a current list of participating financial institutions, view http://www.michiganadvantage.org/cm/Files/Fact-Sheets/MCSP_fact_sheet.pdf or call MEDC at 1.888.522.0103. Interested borrowers and/or lenders can also contact the MEDC through the program's email address at [email protected].

Michigan Business Growth Fund Loan Participation Program (MBGF-LPP)

The MBGF-LPP was designed to address the underwriting policy of lenders who use a business’s historical cash flow to calculate debt service coverage ratios, which tends to impede the ability of businesses to expand and diversify, especially during a slow economy. The intent of the MBGF-LPP is to participate with lenders to finance diversification projects when faced with borrowers whose projected cash flows are considered speculative by the lender. The MBGF-LPP will purchase a portion of a loan from the lender and offer a grace period on the program’s portion for up to 36 months. MBGF-LPP participation will be advantageous to lenders in two ways: 1) it will limit the project exposure of lenders; and 2) it will offer borrowers “free cash flow” during the grace period allowing full coverage on the lender’s portion of the loan. This will enable suppliers to acquire the needed financing to diversify into new growth industries. Eligible borrower criteria include:

Businesses that engage with a private lender for the purpose of acquiring a commercial extension of commercial credit for a diversification or expansion project and must exhibit a cash flow shortage according to the lender’s analysis.
Borrower must have no more than 750 employees, and otherwise comply with all state and federal requirements for the program.

For Michigan Business Growth Fund Loan Participation Program (MBGF-LPP) program guidelines, lender facts and information, the application process, and a current list of participating financial institutions, view http://www.michiganadvantage.org/cm/Files/Fact-Sheets/MLPP_fact_sheet.pdf or call MEDC at 1.888.522.0103. Interested borrowers and/or lenders can contact MEDC's Capital Markets Development through the program's email address at [email protected].

SmartZones and Business Incubators

SmartZonesSM provide distinct geographical locations where technology-based firms, entrepreneurs and researchers locate in close proximity to all of the community assets that assist in their endeavors. SmartZone technology clusters promote resource collaborations between universities, industry, research organizations, government and other community institutions, growing technology-based businesses and jobs. New and emerging businesses in SmartZone technology clusters are primarily focused on commercializing ideas, patents and other opportunities surrounding corporate, university or private research institute R&D efforts. SmartZones include technology business accelerators that provide services and help facilitate the commercialization of technology. Business accelerator services include, but are not limited to:

Business development mentoring
Networking events
Business feasibility studies
Business planning
Entrepreneurial training
Grant writing
Incubator and wet lab space
Management recruitment
Market analysis
Product development
Small Business Innovation Research (SBIR) assistance
Small Business Technology Transfer (STTR) assistance
Technology assessments
Technology mining
Venture capital preparation and introductions
Sixteen incubators/demonstration facilities in the following cities: Ann Arbor (two), Detroit (two), Grand Rapids (one), Houghton/Hancock (three), Kalamazoo (one), Lansing/East Lansing (two), Mount Pleasant/Midland (two), Muskegon (one), Rochester Hills (one) and Troy (one).

Detroit's Woodward Technology Corridor SmartZone is located in TechTown and affiliated with Wayne State University. Significant community and Kaufman Foundation collaboration has helped to revitalize the City of Detroit by launching 400 new businesses from 2009-2011 along with programs that include: the SmartStart accelerator program that guides companies through product development, marketing, funding and basic business operations; International Soft Landings (ISL), a National Business Incubator Association-accredited program designed to assist foreign companies seeking business expansion opportunities in Michigan; and The Front Door, a gateway program to Wayne State University's research assets, faculty expertise and student talent. For further information, contact the MEDC Customer
Assistance Center at 517.373.9808.

Michigan Pre-Seed Capital Fund

Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to early-stage capital, accelerating company development. As a central fund to the Michigan SmartZoneSM Network, these funds are designed to support this critical stage in the development lifecycle to prepare companies for follow-on private investment. Companies developing technologies in advanced automotive, manufacturing and materials, alternative energy, homeland security and defense, and life sciences, statewide are eligible for these funds through the Michigan SmartZone Network.  For more information, call 313.879.5250 at TechTown SmartZone service area or MEDC at 1.888.522.0103 or visit http://www.michiganadvantage.org/Seed-Angel-Venture-Capital/.

Venture Capital Events/Seminars

Several organizations host regular events where entrepreneurs can present their business ideas to investors. These include:

The Center for Venture Capital and Private Equity Finance

The Center, located at the University of Michigan Ross School of Business Samuel Zell and Robert H. Lurie Institute for Entrepreneurial Studies, hosts regular seminars on entrepreneurial finance. The annual Michigan Growth Capital Symposium (MGCS) is a premier venture event that attracts key investors from all over the United States. For further detail, go to http://michiganmgcs.com.

The Great Lakes Entrepreneur's Quest (GLEQ)

GLEQ is a statewide business plan competition providing training and a venue for feedback from successful entrepreneurs and investors. Each year the most promising entrepreneurs receive cash awards and in-kind services from some of Michigan's top service providers in the areas of law, marketing, communications and Web development. For further information, go to http://www.gleq.org.

For more information on equity capital or up coming events and seminars, contact the Michigan Economic Development Corporation (MEDC) Customer Assistance Center at 517.373.9808.

Michigan Small Business and Technology Development Center (MI-SBTDC)

The Michigan Small Business & Technology Development Centers (MI-SBTDC) provide a full range of services for a variety of small businesses that are emerging and growing throughout Michigan. MI-SBTDC has four teams dedicated to provide expert assistance to the individual needs of Michigan's small business. The teams include small business team, technology team, manufacturing assistance team, and growth group team. Each team offers an array of services that may include counseling, training, market research, access to capital and resource, strategic planning and execution, financial analysis, process mapping, and finance and strategy specialists.

With offices statewide, the MSBTDC impacts the economy by strengthening existing companies, creating new jobs, retaining existing jobs, and assisting companies in defining their path to success. The MI-SBTDC is funded in part through a cooperative agreement with the U.S Small Business Administration. For more information, visit http://misbtdc.org or call 616.331.7480. For more information on the MI-SBTDC Midtown Detroit location, call 313.967.9295 or visit http://www.misbtdc.net/center.aspx?center=39090&subloc=0 .

Michigan Women's Foundation

MWF has dedicated 25 years championing the causes of social justice for women and girls through public and grantee education, philanthropy and advocacy. MWF's Vision & Mission: The Michigan Women's Foundation seeks to help women and girls: - achieve economic justice - experience their communities as safe places - value and have equal access to education and training - address gender discrimination in all forms - transform society. For more information on the Michigan Women's Foundation, visit http://miwf.org.

BELLE Capital LP

BELLE Capital LP is an early stage Venture Capital Fund that invests in high growth companies in Michigan, the Midwest and other underserved geographic markets. We seek to provide a premier source of human and financial capital to the underserved market of women-led companies. We believe our market positioning will provide us with both high quality deal flow and attractive investment terms. The Fund looks for returns of three to five times on its investment. For more information, write to [email protected] or visit http://bellevc.com/index.html.

Angel Loan Fund

The Fund is a micro loan program that lends $5,000 to $35,000 with a 3-5 year term, and 6%-10% interest rates. Interested parties can request an application at this email address: [email protected].

Note: Applicants to both the BELLE Capital LP and the Angel Loan Fund are eligible to the Women's Foundation supporters for mentoring and technical assistance. Women who do not apply for the loans are also eligible to the mentoring and networking. These relationships are informal, but a formal program may be developed in the future depending on the level of interest in the mentors. The mentoring is done through the Power of 100, a diverse group of women throughout the state that provides both intellectual and financial support. The eligibility for services and products are the same as a Women's Business Enterprise (WBE); the business must be woman owned and if it is a partnership, the woman must have decision-making authority over the day-to-day operations of the business.

Midtown Detroit, Inc. Facade Improvement Matching Grant and Security Matching Grant Program

Facade Improvement Matching Grant Program - Designed to encourage the upgrading of Midtown storefronts, the program offers a 50% matching grant for select commercial properties seeking to rehabilitate their building facade.

Security Matching Grant Program - The program helps business and property owners, in the Midtown area, add and/or upgrade security and surveillance mechanisms on their property. As part of the grant, the program requires each property to undergo a security audit conducted by the Wayne State University Police Department. Requested improvements may include items such as decorative fencing, deadbolt locks, lighting, camera and alarm systems, and electronic parking gate locks. For more information, visit this website and search for facade or call 313.420.6000 for updates on the availability of these incentive programs.

NextEnergy

NextEnergy is a leader in driving advanced-energy technologies and sustainability in areas such as Smart Grid, Advanced Energy Storage, Vehicle Electrification, Power Electronics, and a wide range of fuels, and renewables involving wind, solar, biofuels, and energy efficiency. NextEnergy offers business-consulting service and technical resources necessary for projects to be developed and validated. NextEnergy can provide key testing platforms and research-laboratory space, assistance with onsite project management, oversight of experiments, and web-based access to real-time test data.

NextEnergy works with inventors and early-stage alternative energy companies; facilitates strategic planning, market research, financing strategies; and connects with resources in areas such as economic development, government agencies, and nonprofit and business networks. They also lead public/private consortiums for federal research projects, providing both built-out laboratories and testing platforms. For more information, call 313.833.0100 or visit http://www.nextenergy.org.

Opportunity Resource Fund

Formerly known as the Michigan Interfaith Trust Fund, the Opportunity Resource Fund is a nonprofit 501(c) (3) celebrating 25 years of working for social and economic justice. Supporting Michigan’s communities via the creation of decent and affordable housing, jobs and great commercial spaces, we are a catalyst for positive change. The new name and logo reflect our reenergized commitment to the mission and values we have lived since our inception in 1985. The Opportunity Resource Fund seeks to reach even more communities. The purpose, while updated to incorporate a larger audience, continues to accept loans and investments from individuals and organizations to provide these funds to those denied traditional access to capital. For more information, call 313.964.7300 or visit http://www.oppfund.org.

Micro-enterprise/Small Business

The Opportunity Resource Fund provides loans to spur economic development in Michigan communities. Loans are generally $10,000 to $200,000 with terms up to six years. Borrowers must have been turned down by another lender or the project or business does not meet traditional underwriting standards. To participate, the borrower must meet at least two social criteria, which may include: demonstrates community control or local self-determination; demonstrates alternative business practices (cooperatives); employs low income people; Empowers disadvantaged people (woman/minority owned businesses); reinvests in a decaying area or reduces blight; uses ecologically sensitive approaches; leverages other resources; and provides partnership, collaboration and cooperation. The following are three loan categories:

Micro-Enterprise/Small Business for the start up or expansion of a small business. These loans can be used for pre-development costs, acquisition, construction or renovation of a building, or purchase of land. Inventory and working capital for a planned business expansion are also available.
Nonprofit Facility and/or Working Capital Loans to nonprofit organizations to acquire, renovate, or construct a building for use in the delivery of their services to low income or disadvantaged people. Working capital loans to assist with the cash flow needs of nonprofit organizations are also available.
Commercial Real Estate Development provides loans to both nonprofit and for-profit developers to assist with the revitalization of commercial real estate. These loans can be used for pre-development costs, acquisition, construction or bridge financing, as well as short-term permanent financing.

For more information on the Micro-enterprise/Small Business opportunity, contact the Detroit office at 313.964.7300 or visit: http://www.oppfund.org.

Development Services

The Opportunity Resource Fund provides small businesses and nonprofits with technical assistance that can help them start strong, gain success and continue to grow. The Fund offers strategic development, business planning (such as relocation, establishing short-term goals, etc.), accounting, marketing, financing and consulting services. For more information, call 517.372.6001 or visit http://www.oppfund.org.

Small Business Detroit! MicroLoan

The Small Business Detroit Microloan Program (SBDMP) was created through a partnership between the City of Detroit Mayor’s Office of Neighborhood and Commercial Revitalization (ONCR) and the Center for Empowerment & Economic Development (CEED). The purpose is to provide business start-up and expansion financing to those businesses in Detroit that cannot obtain traditional financing.

The program is funded through the Casino Business Development Fund created under the temporary casino agreements. One-and-a-half million of the funds are designated to assist first-time entrepreneurs and other underserved populations with start-up or expansion of small businesses. The Small Business Detroit MicroLoan Program will offer microloans ranging from $5,000 to $50,000. The SBDML is administered by CEED (Center for Empowerment and Economic Development). For additional information, contact the Small Business Detroit MicroLoan office at 313.255.1020 or visit http://www.ci.detroit.mi.us/Programs/SmallBusinessDetroitMicroLoan/tabid/1252/Default.aspx or http://www.miceed.org.

State of Michigan

Commercial Facilities Exemption (CFE) P.A. 255 of 1978, as amended

The Commercial Redevelopment Act, (known as the Commercial Facilities Exemption), PA 255 of 1978, as amended, affords a tax incentive for the redevelopment of commercial property for the primary purpose and use of a commercial business enterprise. The property must be located within an established Commercial Redevelopment District. Exemptions are approved for a term of 1-12 years as determined by the local unit of government and the taxable value is frozen for the duration of the certificate. For restored facilities, the property taxes are based upon the previous year's (prior to restoration) taxable value and 100% of the mills levied. For new or replacement facilities, the property taxes are based upon the current year's taxable value and 50% of the mills levied. Applications are filed, reviewed, approved, and certificates are issued by the local unit of government. Certificates are also filed with the State Tax Commission. For more information, call 517.373.2408 or visit www.michigan.gov/propertytaxexemptions.

Industrial Facilities Exemption (IFE) P.A. 198 of 1974, as amended

The Industrial Facilities Exemption PA 198 of 1974, as amended, provides a tax incentive to manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities, and to promote the establishment of high tech facilities. A district must be established prior to initiating a project so it is essential that the local assessor is counsulted before commencing a project. An Industrial Facilities Exemption (IFE) certificate entitles the facility to exemption from ad valorem real and/or personal property taxes for a term of 1-12 years as determined by the local unit of government. Abatements under PA 198 can significantly reduce property taxes on new investment for eligible firms. Tax abatements are reviewed and approved by the local unit of government, but are also subject to review at the State Tax Commission (STC) and the Michigan Economic Development Corporation (MEDC). The STC grants final approval and issuance of the exemption certificate. Exemptions are not effective until approved by the STC.

Tax impact involves Industrial Personal Property Exemption and IFE Treatment, Real and Non-Industrial Personal Property IFE Treatment, Rehabilitation of Real or Personal Property IFE Treatment, Speculative Building IFE Treatment, and Commercial Personal Property Tax Relief.

For more information, visit www.michigan.gov/propertytaxexemptions or contact MEDC Customer Assistance Center at 517.373.9808

Michigan Business One Stop

The online One Stop Business Resource Center is designed to help entrepreneurs to start and manage their Michigan business. Research and Plan areas include Tools You Can Use, Business Entity Search, Financing Your Business, Employer Resources, Taxes: General Information, Take the One Stop Tour, and Try the One Stop Simulator. Online business support also offers resource center information, a Customer Assistance Center, One Stop Tutorials, and License Search. For more information on the Michigan Business One Stop resource, call 1.877.766.1779 or visit http://www.michigan.gov/business.

New Personal Property Tax Exemption

The New Personal Property Tax Exemption provides a property tax reduction to eligible businesses bringing new business or more business to the State of Michigan. Cities, villages, and townships that contain distressed areas (as defined under the Michigan State Housing Development Authority Act), and all county seats (as defined under the Neighborhood Enterprise Zone Act) are eligible to participate. Detroit is designated as one of the eligible distressed communities. Types of eligible businesses are those primarily engaged in manufacturing, mining, research and development, wholesale trade and office operations. In order to qualify for the exemption, the qualified personal property must be placed in an “eligible district” after the local governmental unit adopts the resolution which provides for the exemption. Also, the "eligible district" must be established before the exemption can be approved by the local governmental unit's resolution. Completed applications are first submitted to the local governmental unit (i.e. city, township or village) for approval. If the local government approves the application, they then forward it to the State Tax Commission for review and approval. An application for the New Personal Property Tax Exemption can be found at the Michigan Department of Treasury website at http://www.michigan.gov/propertytaxexemptions. For more information, visit: http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-213182--,00.html or contact Treasury at 517.373.3200.

TechTown

TechTown is a Wayne State University research and technology park located Midtown Detroit that was established in 2000 when Wayne State University, General Motors and the Henry Ford Health System convened to create an engine of economic growth with both local and statewide impact. TechTown provides incubation and acceleration resources including space for lease, coaching, mentoring, educational workshops and access to talent and capital. In the years since its inception, TechTown has developed into an epicenter of high-tech business creation by equipping new companies with the services, support and resources they need to grow and thrive. The 12-block park is poised to become a critical source of job growth in Michigan. For more information, call TechTown at 313.879.5250 or visit: http://techtownwsu.org.

Detroit Tecchnologyy Exchange

Integrated Ecosystem Services: This program will institute practices like monthly portfolio reviews to identify opportunities for collaboration and critical marketing and design assistance for companies. The idea is to fill the gaps in the city's entrepreneurial ecosystem and help participating firms attract investment.
Launch Detroit: A summer boot camp for aspiring entrepreneurs in college (both graduate and undergraduate) that want to launch tech startups. The 10-week program will provide a stipend to participants and work to connect them with the city's entrepreneurial ecosystem. It aims to encourage young talent interested in technology to either remain in Detroit or move to the region.
D-Venture: This executive-in-residence program will bring selected entrepreneurial-minded professionals to Detroit to create startups out of underutilized or underdeveloped intellectual property. Each participant develops a business plan, acts as CEO, raises seed capital, and receives an annualized salary for six months to one year.
Detroit Technology Exchange Fellows: This fellowship program will insert individuals into the Motor City's entrepreneurial service organizations and startups. The plan is to infuse high-quality, mid-level talent to Detroit's entrepreneurial ecosystem. It will provide six fellows with an annualized salary over two years.

Tech Town Business Development Programs

Fast Trac

FastTrac® is a practical, hands-on, entrepreneur-learning program designed to help hone the skills needed to create, manage, and grow a successful business. Existing and aspiring entrepreneurs can work on their own business ideas or existing ventures throughout the program in non-academic environments and college students in their academic environment can earn credit for completing courses using FastTrac® materials. FastTrac® has served more than 300,000 entrepreneurs since 1993. To find out more information on Fast Trac, contact Rene Kelly at 313.879.4484 or visit their website at http://techtown.affiliate.fasttrac.org.

THRIVE

THRIVE is TechTown’s business accelerator program, designed to inject essential resources into emerging companies at critical stages in their development. THRIVE offers coaching, mentoring, entrepreneurs in residence, industry experts, workshops, capital overview and connections, physical space and networking to support business idea feasibility, funding strategy, business plan, polished pitch, revenue generation, job creation and more. THRIVE caters to new and to serial entrepreneurs with business ideas from the early to growth stages of development. Its primary industry focuses are supply chain management and logistics, arts and entertainment (creative sector), alternative energy, advanced manufacturing and life sciences. For more information, visit http://techtownwsu.org/understanding-thrive.

THRIVE One Fund

The objective of the Thrive One Fund is to encourage minorities and women business owners to build their business in Southeast Michigan and to contribute to the economic growth of the region. TechTown is empowered by the City of Detroit to manage funding and provide guidance, coaching, general entrepreneurial training and distribution of funding to suitable loan candidates. For more information on the application process or the terms of the loan, contact TechTown’s Capital Champion Jack Miner at 313.483.7099 or at [email protected] or visit: http://techtownwsu.org/thrive-one-a-new-funding-source-for-women-minority-entreprenerus.

U.S. Small Business Administration of Michigan (SBAM)

Since its founding on July 30, 1953, the U.S. Small Business Administration has helps Americans start, build and grow businesses. SBA has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. SBA also provides assistances primarily through its four programmatic functions: Access to Capital (Business Financing), Entrepreneurial Development (Education, Information, Technical Assistance & Training), Government Contracting (Federal Procurement), and Advocacy (Voice for Small Business).

The Michigan District Office offers multiple resources. For small business owners there are Size Protest Guidelines, Size Protests, Size Determinations, and Appeals, SBA Loans, Export Loan Programs, Explore Exporting, 6 Steps to Begin Exporting, 20 Questions Before Starting a Business, and A World of Opportunity. From the office, there is a 2013 Financing Roundtables Schedule. Resources in the area include; Resources in Your Area, Small Business Readiness Assessment Tool, Starting a Business In Michigan, Accountants/CPAs, Attorneys – links to State Bar of Michigan lawyer referral service, Michigan Small Business & Technology Development Center, Forming a Partnership, Forming a Corporation, LLC or LLP, Interactive Business Plan Template, Michigan Department of Environmental Quality, Environmental Protection Agency, Michigan Unemployment Insurance Agency, and SCORE Mentors Michigan Chapters. SBA Programs include SBA's Role in Lending; Find a Mentor or Counselor, and Federal Business Opportunities. Links to these resources are found at http://www.sba.gov/about-offices-content/2/3121/resources.

Decision Point

The Small Business Association of Michigan has compiled information business owners need to understand and comply with the Affordable Care Act. SBAM will have the most up-to-date information on this changing law.

Decision Point is a dynamic, fact-based tool that is backed by the credibility of SBAM's combined years of expertise in the small business health insurance arena. The tool is free to SBAM members enrolled in an SBAM-sponsored health plan and $50 for members who are not. Non-members are charged $250 to join the association and access Decision Point.

The online tool will provide:

Full-Time Equivalent Employee (FTE)* Calculator
Tax Credit Subsidy Calculator
Complete Timeline for ACA Implementation
Employer Mandate*s
Employee/Individual Mandate*s
Potential Penalties
Guide to Choosing Health Care for Your Business

Other business groups that offer online tools are the Detroit Regional Chamber and the Michigan Business and Professional Association. For more information, visit: https://sbam.org/DecisionPoint, call 800.362.5461, or write to [email protected].

Loan Programs

Financing your business requires research to find the most appropriate funding model. SBA offers a variety of loan programs for very specific purposes. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions. Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. SBA’s guaranteed loan programs include 7(a) Loan Program, CDC/504 Loan Program, Microloan Program, and Disaster Assistance Loan Program.

General Small Business Loans 7(a):

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for businesses with special requirements. To be eligible for assistance, businesses must:

Operate for profit
Be small, as defined by SBA
Be engaged in, or propose to do business in, the United States or its possessions
Have reasonable invested equity
Use alternative financial resources, including personal assets, before seeking financial assistance
Be able to demonstrate a need for the loan proceeds
Use the funds for a sound business purpose
Not be delinquent on any existing debt obligations to the U.S. government

The loan can be used to provide long-term working capital to use to pay operational expenses, accounts payable and/or to purchase inventory; for short-term working capital needs, including seasonal financing, contract performance, construction financing and exporting; for revolving funds based on the value of existing inventory and receivables, under special conditions; to purchase equipment, machinery, furniture, fixtures, supplies or materials; to purchase real estate, including land and buildings; to construct a new building or renovate an existing building; and to establish a new business or assist in the acquisition, operation or expansion of an existing business; and to refinance existing business debt, under certain conditions.

The maximum loan size is $5 million. Loan maturity is 7 years for working capital, 10 years for equipment and generally up to 25 years for real estate. Short-term loans and revolving lines of credit are also available through the SBA to help small businesses meet their short-term and cyclical working capital needs. There are also special types of 7(a) Loans, which include CAPLines, SBA Export Loan Programs, Advantage Loans, Community Advantage Approved Lenders, Rural Business Loans, and Patriot Express.

For more information on the 7(a) Loan Program, visit http://www.sba.gov or call the Michigan SBA office at 313.226.6075.

Real Estate and Equipment Loans: CDC/504 Loan Program

The CDC/504 Loan Program provides financing for major fixed assets such as equipment or real estate. A 504 loan can be used for:

The purchase of land, including existing buildings
The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
The construction of new facilities or modernizing, renovating or converting existing facilities
The purchase of long-term machinery and equipment

Maximum loan amounts are determined by how funds will be used based on which goal they support from the list below.

Job Creation, the maximum SBA debenture is $1.5 million for meeting the job creation criteria or a community development goal. Generally, businesses must create or retain one job for every $65,000 provided by the SBA, except for small manufacturers, which have a $100,000 job creation or retention goal.

Public Policy - The maximum SBA debenture is $2 million when meeting a public policy goal. Public policy goals include business district revitalization, expansion of exports, expansion of minority business development, rural development, increasing productivity and competitiveness, restructuring because of federally mandated standards or policies, changes necessitated by federal budget cutbacks, expansion of small business concerns owned and controlled by veterans (especially service-disabled veterans), and expansion of small business concerns owned and controlled by women.

Small Manufacturing - The maximum debenture for small manufacturers is $4 million. A small manufacturer is defined as a company that has its primary business classified in sector 31, 32, or 33 of the North American Industrial Classification System (NAICS) and all of its production facilities located in the United States. To qualify for a $4 million 504 loan, your business must meet the definition of a small manufacturer and accomplish one of the following: create or retain at least one job per $100,000 guaranteed by the SBA [Section 501(d)(1) of the Small Business Investment Act (SBI Act)] or improve the economy of the locality or achieve one or more public policy goals [sections 501(d)(2) or (3) of the SBI Act].

Generally, the project assets being financed are used as collateral. Personal guarantees of the principal owners are also required. Maturity terms of 10 and 20 years are available. Interest rates on 504 loans are pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues. Fees total approximately 3 percent of the debenture and may be financed with the loan.

For more information on the CDC/504 Loan Program, program eligility, and the application process, visit http://www.sba.gov/about-sba-services/2834 or call the Michigan SBA office at 313.226.6075.

Disaster Loan

SBA provides low-interest disaster loans to homeowners, renters, businesses of all sizes, and most private nonprofit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a declared disaster. You can apply online at https://disasterloan.sba.gov/ela/, submit by mail, or apply in person at any Disaster Recovery Center and receive personal, one-on-one help from an SBA representative. For information or to find a location near you, please contact our Customer Service Center. Call 1-800-659-2955 or the Michigan SBA office at 313.226.6075 or e-mail [email protected].

Microloan Program

The Microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000. The U.S. Small Business Administration provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers. Each intermediary lender has its own lending and credit requirements. Generally, intermediaries require some type of collateral as well as the personal guarantee of the business owner.

Microloans can be used for working capital, inventory or supplies, furniture or fixtures, and machinery or equipment. Interest rates vary, depending on the intermediary lender and costs to the intermediary from the U.S. Treasury. Generally, these rates will be between 8 and 13 percent. Proceeds from a microloan cannot be used to pay existing debts or to purchase real estate. For more information on this loan, visit http://www.sba.gov/about-sba-services/2834 or call the Michigan SBA office at 313.226.6075.

Small Business Innovation Research Program (SBIR)

SBIR is a highly competitive program that encourages small business to explore their technological potential and provides the incentive to profit from its commercialization. SBIR protects the small business and enables it to compete on the same level as larger businesses. Because the innovative entrepreneurial sector may not have the means to handle the risk and expense of conducting serious R&D efforts, SBIR funds the critical startup and development stages and it encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy. Eligibility criteria include American-owned and independently operated, for-profit, principal researcher employed by business, and company size limited to 500 employees.

Each year, eleven federal departments and agencies are required by SBIR to reserve a portion of their R&D funds for award to small business. These agencies designate R&D topics, accept proposals, and make SBIR awards based on small business qualification, degree of innovation, technical merit, and future market potential. Small businesses that receive awards then begin a three-phase program.

Phase I is the startup phase. Awards of up to $100,000 for approximately 6 months support exploration of the technical merit or feasibility of an idea or technology.
Phase II awards of up to $750,000, for as many as 2 years, expand Phase I results. During this time, the R&D work is performed and the developer evaluates commercialization potential. Only Phase I award winners are considered for Phase II.
Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding.

For more information on the Small Business Innovation Research Program SBIR Program, contact the US Small Business Administration Office of Technology 409 Third Street, SW Washington, D. C. 20416 at 202.205.6450 or visit http://www.sba.gov/content/small-business-innovation-research-program-sbir-0.

Small Business Technology Transfer Program (STTR)

STTR is a highly competitive program that reserves a specific percentage of federal R&D funding to award to small business and nonprofit research institution partners. As the innovative entrepreneurial sector may not have the means to handle the risk and expense of conducting serious R&D efforts and nonprofit research laboratories are instrumental in developing high-tech innovations, STTR seeks to combine the strengths of both entities by introducing entrepreneurial skills to high-tech research efforts. The technologies and products are transferred from the laboratory to the marketplace. The small business profits from the commercialization, which, in turn, stimulates the U.S. economy.

Small business eligibility criteria includes American-owned and independently operated, for-profit, principal researcher need not be employed by small business, and company size limited to 500 employees. The nonprofit research institution eligibility criteria includes being located in the US and meeting one of three definitions as a nonprofit college or university, domestic nonprofit research organization, or federally funded R&D center (FFRDC). There is no size limit for nonprofit research institution.

Each year, five federal departments and agencies are required by STTR to reserve a portion of their R&D funds for award to small business/nonprofit research institution partnerships. These agencies designate R&D topics, accept proposals, and make STTR awards based on small business/nonprofit research institution qualification, degree of innovation, and future market potential. Small businesses that receive awards then begin a three-phase program.

Phase I is the startup phase. Awards of up to $100,000 for approximately one year fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology.
Phase II awards of up to $750,000, for as long as two years, expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercial potential. Only Phase I award winners are considered for Phase II.
Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No STTR funds support this phase. The small business must find funding in the private sector or other non-STTR federal agency funding.

For more information on the Small Business Technology Transfer Program STTR Program, contact the US Small Business Administration Office of Technology 409 Third Street, SW Washington, D. C. 20416 at 202.205.6450 or visit http://www.sba.gov/content/small-business-innovation-research-program-sbir-0.

University of Michigan

Social Venture Fund (SvF)

The University of Michigan Social Venture Fund (SvF) invests in and supports the growth of innovative companies with a business model that addresses societal needs, which have been insufficiently addressed in traditional markets. Housed within the Zell Lurie Institute for Entrepreneurial Studies at the Ross School of Business, SvF directly connects businesses with one of the top rated MBA programs both for entrepreneurship and for social and environmental impact. SvF is uniquely positioned to collaborate with some of the country’s best graduate schools and has developed working partnerships in the areas of engineering, public health, natural resources, and environment, education and law. SvF has access to these resources as well as to the largest living alumni base with over 425,000 members that include entrepreneurs, gatekeepers, investors and policy makers around the world. SvF can help further develop business models, organizational strength, and skill sets for investment and/or to ensure your success post-investment. SvF focuses on four investment areas: health, education, food systems & environment and urban revitalization. For more information, visit http://www.umsocialventure.com or email [email protected].

Urban Partnership Bank

The Urban Partnership Bank is a full-service, FDIC-insured, community development bank with $1.3 billion in assets and branch locations in Chicago, Cleveland, and Detroit. Founded in 2010, Urban Partnership Bank focuses on bringing responsible, affordable financial services to distressed urban communities that have been underserved by the banking industry. The Urban Partnership Bank is a certified CDFI that by definition spurs economic growth and development by providing access to a wide range of responsible affordable financial services and products that are often unavailable to individuals, small businesses, nonprofits, foundations, and faith-based organizations in the community.

The new Detroit branch offers a wide array of transactional banking and Treasury Management services, as well as loans for small businesses and the acquisition and renovation of commercial and residential real estate. For more information contact Customer Service at 313.642.5200 or visit www.upbank.com.

Venture Michigan Fund (VMF)

The VMF is a $95 million venture capital investment program designed to promote Michigan's economic health by assisting in the creation of new jobs, new businesses, and new industries in Michigan through the creation of a fund-of-funds that will invest in venture capital managers who invest primarily in Michigan-based early stage companies. A unique component of VMF is that the capital for the fund is strictly raised by outside investors, with the Michigan Department of Treasury offering to provide investors with up to $450 million of tax voucher certificates to offset any shortfall. The Credit Suisse Customized Fund Investment Group (CFIG) was chosen as manager for the program through an RFP process. For more information on the Venture Michigan Fund, visit http://www.venturemichigan.com or call the Credit Suisse Michigan office at 248.619.1862.

Wayne State University

Small Business Enterprises and Nonprofit Corporations Clinic

The Small Business Enterprises and Nonprofit Corporations Clinic is Wayne Law's transactional clinic. The Clinic represents both for-profit and nonprofit clients who cannot afford to pay for legal services offered by attorneys in the private bar. The Clinic will assist businesses within the City of Detroit and in the Detroit metropolitan area. Among the services the clinic offers are entity formation, contract review and preparation, review and drafting of commercial real estate documents, preparation of trademark and copyright applications, and preparation of tax-exempt applications for 501(c) (3) status. The Clinic represents clients only on business transactions and does not work on litigation matters. Interested students should call 313.577.8859 or e-mail [email protected]. A Small Business and Non-profit Corporations Clinic fact sheet is located at http://law.wayne.edu/pdf/smallbusinessclinic_factsheet.pdf. For more information, visit http://law.wayne.edu/academics/business-clinic.php.

Wayne State University Library

Starting a New Business Guide

This online guide contains resources to assist entrepreneurs in Michigan with writing business plans, performing market research, and understanding the legal niceties. The guide includes: Resources (Federal, State of Michigan, City of Detroit, recommended websites, print material, and eBooks); Business Plan (importance of eBooks, and websites); and Formation (filing and registration, professional resources, and tax information). Also included are Market and Industry Research (Industry Codes, US Government Data, State of Michigan Data Sources, trade associations and publications, journal and reference databases, business directories, recommended websites and databases); News and Events (news sources, events, learning, and business opportunities), Intellectual Property websites; and Finances. For more information on the Starting a New Business Guide, visit http://guides.lib.wayne.edu/content.php?pid=182599&sid=1535646 or call the Liaison Librarian at 313.577.8568.

WomanOwned

WomanOwned helps woman owned businesses profit, connect and grow through the largest online community dedicated entirely to small businesses. You can connect with small businesses and potential partners, market and advertise your services and skills with your profile, and get grant and funding information to grow your business. Get noticed online by adding your business to the public directory to gain exposure, connect with others, and create partnerships to help your business grow. Enhance your business profile by using your profile as a marketing tool to receive a higher search engine ranking, highlight your services and display your business certifications.

Find funding for your business by exploring thousands of grants and funding opportunities to help develop and grow your small business, compiled to save you time by WomanOwned. Mediums that have featured WomanOwned.com: The Today Show, ABC News, CNN, Oprah.com, and Wall Street Journal. Visit http://www.womanowned.com for more information. Contact WomanOwned by email to [email protected] or call Monday-Friday between 9am-5pm (Eastern) at 1-855-229-7416.

Brownfield Development

Environmental Protection Agency (EPA)

Brownfields Area-Wide Planning Grant

These grants may be used by communities to facilitate community involvement in developing an area-wide plan for brownfields assessment, cleanup and subsequent reuse on a catalyst site and other high-priority brownfield sites. Each grant is funded up to $200,000 for two years. The proposal submission deadline is November 30, 2012. For more information, visit http://www.epa.gov/brownfields/news/index.htm or or contact the EPA at the Office of Brownfields and Land Revitalization at 202.566.2777.

Brownfields Assessment, Revolving Loan Fund and Cleanup Grants

These grants may be used to address sites contaminated by petroleum and hazardous substances, pollutants, or contaminants (including hazardous substances co-mingled with petroleum). Opportunities for funding are as follows: Brownfields Assessment Grants (each funded up to $200,000 over three years; coalitions are funded up to $600,000 over three years), Brownfields Revolving Loan Fund (RLF) Grants (each funded up to $1,000,000 over five years) and Brownfields Cleanup Grants (each funded up to $200,000 over three years). The proposal submission deadline was extended to December 3, 2012). For more information, visit http://www.epa.gov/brownfields/news/index.htm or or contact the EPA at the Office of Brownfields and Land Revitalization at 202.566.2777.

Technical Assistance to Brownfields Communities Grant

The EPA is announcing $5 million in grants to provide technical assistance to communities. The EPA anticipates award of up to nine (9) cooperative agreement(s). Grants awarded under the Technical Assistance to Brownfields Communities (TAB) announcement will help communities tackle the challenge of assessing, cleaning up and preparing brownfields sites for redevelopment, especially underserved/rural/small and otherwise distressed communities. Technical assistance being provided through this grant should also be geared toward results and help to move brownfields sites forward in the process toward cleanup and reuse. The maximum value of each grant will be based on the technical assistance being provided; however, grants in geographical area 5 shall not exceed $1,000,000 and grants in geographical areas 1, 2, 3, 4, 6, 7, 8 and 9 shall not exceed $500,000 each under this competitive opportunity. The proposal deadline is November 14, 2012. For more information, visit http://www.epa.gov/brownfields/news/index.htm or or contact the EPA at the Office of Brownfields and Land Revitalization at 202.566.2777.

Note: Grant and loan availability changes from year to year. Visit http://www.epa.gov/brownfields for more information on the Brownfields Assessment, Cleanup, and Revolving Loan Fund Grants, or contact the EPA at the Office of Brownfields and Land Revitalization at 202.566.2777.

Brownfield Redevelopment Authority - Public Act 381 of 1996

A Brownfield Redevelopment Authority is a resource that may use Tax Increment Financing (TIF) as a tool for property redevelopment. Any city, village, township or county may create a Brownfield Redevelopment Authority to develop and implement Brownfield projects. Once created, a Brownfield Redevelopment Authority reviews proposals for the redevelopment of eligible property and determines what financial incentives are necessary to assist the redevelopment.

The creation of a Brownfield Redevelopment Authority allows local decision making in the various aspects of Brownfield redevelopment. Through redevelopment, a municipality can:

Focus development in existing service areas.
Enhance tax base through private development.
Receive multiple taxing jurisdiction participation in redevelopment financing.
Provide reimbursement for eligible Brownfield activities. A Brownfield Redevelopment Authority provides a municipality with the opportunity to create a local Brownfield financing resource, enhance local economic development capacities, and market difficult sites based on the private investment incentives.

For more information, visit http://www.michiganadvantage.org/Brownfield-Redevelopment/ or contact the Customer Contact Center at 1.888.522.0103.

Brownfield Redevelopment Grants and Loans

The Michigan Department of Environmental Quality (MDEQ) offers grants and loans to Michigan local units of government, Brownfield Redevelopment Authority (BRA)s, or other public bodies created pursuant to state law, including state-funded schools and universities for environmental assessments and cleanups at properties with known or suspected contamination or properties with redevelopment potential and suspected contamination.

Funds are targeted to projects that promote economic development and the reuse of brownfield properties. The MDEQ provides assistance with efforts to revitalize abandoned industrial properties; attract developers to brownfields; leverage capital for Brownfield Redevelopment Authority (BRA) projects with loans; and avoid urban sprawl by reusing properties with existing infrastructure. Funding is generally limited to available funds up to $1 million per applicant per year for each grant or loan. Loan terms interest rate is currently 1.5 to 2 percent; with a 15-year payback period, beginning with a 5-year grace period with no interest accrued or payments. Loans may be repaid using Tax Increment Financing (TIF) through a BRA. The two active programs include:

Brownfield Redevelopment Grants (BRG) and Site Reclamation Grants (SRG) provide funding to local units of government and other public bodies to investigate and remediate known sites of environmental contamination in preparation for economic redevelopment projects. The grants ensure safe reuse of abandoned, vacant, or underutilized contaminated properties, and to promote clean up and redevelopment of brownfields. Redevelopment of brownfield sites reenergizes local economies, strengthens neighborhoods, benefits the environment, and protects public health. Applications for BRG and SRG grants are accepted on a continuing basis. The maximum grant award is $1 million per project for Brownfield Redevelopment Grants and $2 million per project for Site Reclamation Grants. No local match is required.
Brownfield Redevelopment Loans (BRL) and Revitalization Revolving Loans (RRL) are designed to support the redevelopment of brownfield properties by providing low-interest loans to local units of government and other public bodies to investigate and remediate sites of known or suspected environmental contamination.

Applications for BRL and RRL loans are accepted on a continuing basis. The maximum loan amount is $1 million per project for Brownfield Redevelopment Loans. Maximum funding limits for the Revitalization Revolving Loan program depend on availability of funds. No local match is required. For more information and assistance, contact the office of Remediation Division, Brownfield Redevelopment Grants and Loans Program at 517-373-9540 or visit http://michigan.gov/deq/0,4561,7-135-3311_4110_29262---,00.html.

Detroit Economic Growth Corporation

Detroit Economic Growth Corporation is a non-profit organization that works closely with the City of Detroit and other partners to support existing businesses and to bring new companies and investments to the city. The DEGC also acts as staff for a number of public authorities whose board members are appointed by the Mayor and approved by Detroit City Council. Each of those entities has distinct responsibilities and powers, but they are very closely related. By using a common staff – DEGC – the work of these public authorities is well coordinated and avoids duplication. DEGC also works directly for the City of Detroit under contract and manages economic development efforts funded by private and foundation contributions, grants and contracts. For more information, visit http://www.degc.org or call 313. 963.2940.

Brownfield Redevelopment Tax Incentives

Brownfield and Historic tax credit programs, part of the Michigan Business Tax (MBT), were eliminated under business tax restructuring which was approved by legislation and signed into law by the governor mid-2011. The MBT was replaced with a 6% Corporate Income Tax (CIT) for "C" corporation on federal taxable income apportioned to Michigan. Brownfield and Historic tax credits are not included in the new CIT. Developers who have already received Brownfield and Historic credits can retain those credits if they continue to file the Michigan Business Tax. For more information, call the MEDC Customer Assistance Center at 517.373.9808 or visit their website at http://www.TheMEDC.org/brownfields. For local information on the Brownfield Redevelopment Tax Incentives, visit http://www.degc or call DEGC at 313.963.2940.

City of Detroit Brownfield Redevelopment Authority (DBRA)

The City of Detroit Brownfield Redevelopment Authority (DBRA) was established in order to promote the revitalization of environmentally distressed and blighted areas within the city of Detroit. The Under Act 381, developers of properties located in Detroit that qualify as contaminated, blighted, or functionally obsolete and are part of an approved Brownfield plan, may be eligible for Tax Increment Financing (TIF) reimbursement for both environmental and non-environmental activities. Properties that are located in Detroit are eligible if they have eligible activities identified under a Brownfield plan, are formerly or currently used as commercial, industrial, public or residential properties and are one of the following: contaminated, blighted, or functionally obsolete. Developers who complete projects with eligible remediation and/or infrastructure activities may be reimbursed through TIF for specific costs to prepare the site for redevelopment. Activities that are eligible for TIF reimbursement include but are not limited to baseline environmental assessments and remediation, demolition, due care activities, additional response activities, lead or asbestos abatement, demolition, site preparation, and public infrastructure improvements. Applying for a brownfield plan is a multiple-step process that requires approvals by the DBRA, Detroit City Council and State of Michigan. Applicants are encouraged to contact DEGC at 313-483-4150 or [email protected]for assistance with the process or visit http://www.degc.org/board-administration.aspx/detroit-brownfield-redevelopment-authority.

Obsolete Property Rehabilitation Act (OPRA)

The Obsolete Property Rehabilitation Act (OPRA), Public Act 146 of 2000 provides for a tax incentive to encourage the redevelopment of obsolete buildings. A new exemption will not be granted after December 31, 2016, but an exemption that is in effect will continue until the certificate expires. The tax incentive is designed to assist in the redevelopment of older buildings in which a facility is contaminated, blighted
or functionally obsolete. The goal is to rehabilitate older buildings into vibrant commercial and mixed-use projects.

Detroit may establish obsolete property rehabilitation districts. The OPRA incentive is used to encourage the redevelopment of blighted buildings. In many cases, this could be an abandoned, multi-story industrial building that is now more suited for commercial or residential rental units. To the developer, the advantage is savings on property taxes. The tax incentives essentially freeze the local property taxes for up to 12 years, exempting from local property tax all real property improvements. In addition, the State Treasurer has the ability to exempt one-half of the school millage for up to six years on 25 projects per year. By freezing the taxable value, it provides an incentive for the developer to make significant improvements to a building without increasing the property taxes on the building. Applications for exemption must be approved before rehabilitation work begins. If you have questions about this incentive, please call DEGC Business Development Intake at 313.237.4630 or visit http://www.degc.org or contact the MEDC Customer Assistance Center at 517.373.9808.

Commercial Real Estate

Invest Detroit

Invest Detroit is a leading source of private sector gap financing that utilizes a variety of funding tools through managed for-profit and non-profit targeted funds to support economic and community development in underserved communities primarily in the City of Detroit. Invest Detroit and its related entities were formed to facilitate funding from the public, private and foundation sectors and to address targeted needs of the communities it serves. Representing $110 million in funds and tax credits, Invest Detroit serves as a platform to meet a broad range of financing needs to support business expansion and real estate development, the creation and retention of jobs, and the revitalization of distressed areas.

Invest Detroit represents the vision of the Board of Directors and management of the Detroit Investment Fund (DIF), which was created and funded in 1995 by members of Detroit Renaissance, now known as Business Leaders for Michigan. In 2010, the DIF Board and management team enhanced and transitioned the capabilities of DIF to create Invest Detroit, which serves as an umbrella entity for DIF and other for-profit and non-profit managed funds. The efforts of Invest Detroit are intended to promote job creation, expansion of the tax base and an improved quality of life for the communities it serves. Invest Detroit’s financing tools support a variety of needs including business expansion and purchase of equipment, real estate development and redevelopment, predevelopment costs, neighborhood retail, emerging business’ development costs, and New Markets Tax Credits. Loans for strategic projects are considered when the potential exists for a long-term, clear benefit, which is critical to the economic development of the City of Detroit. This emphasizes the Fund’s commitment to economic revitalization by financing projects that would likely not be completed without the participation of Invest Detroit.

Invest Detroit invests in eligible projects or companies from several different funding sources which include Detroit Investment Fund (DIF) , New Markets Tax Credits (NMTC), Lower Woodward Housing Fund (LWHF), Predevelopment Loan Funds, Urban Retail Loan Fund (URLF), and First Step Fund. The economic development efforts of Invest Detroit have resulted in 2,000 jobs created or retained, 1,490 housing units created or renovated, 2,230,657 residential square feet developed, 1,626,010 commercial square feet developed, and 40,000 retail square feet developed. For more information, call the Invest Detroit office at 313.259.6368 or visit http://www.investdetroit.com.

Business & Equipment Loans

Financing from business & equipment loans may be utilized for the growth of commercial and industrial businesses in the City of Detroit. Industries serviced include manufacturing companies, distribution and logistics companies, service companies, and others. The transaction range is $500,000 to $2.5 million for business expansion, capital improvements, purchase of equipment, purchase of real property, working capital, and restructuring of existing debt. Loans of this type will typically be subordinated and are intended to assist the owner in meeting the financing requirements of a traditional lender. Financial types considered are: term loans, mezzanine financing, bridge loans, construction loans, and commercial mortgage real estate loans. General loan criteria includes: a business plan which demonstrates that the future financial results of the company will service the senior and capital debt and the business must have experienced and successful management with 3 years of successful operating experience. For more information on Invest Detroit Business & Equipment Loans, visit http://www.investdetroit.com or call 313.259.6368.

Detroit Investment Fund (DIF)

The Detroit Investment Fund (DIF) is a source of private sector financing designed to be a catalyst for investment in Detroit by financing qualified commercial projects and entities to stimulate economic development and job creation. The DIF provides gap-financing intended to leverage owner equity so that the transaction merits traditional bank/senior lender financing. Investments in strategic projects are considered when potential exists for a significant long-term, clear benefit to the economic development of Detroit that would likely not be completed without the DIF.

Eligible projects include business expansion, capital improvements, purchase of equipment, working capital, purchase of real property, commercial real estate development, and strategic investments that create a long-term benefit for the community. DIF provides loans that leverage owner equity to merit traditional financing, offers flexibility in structuring financing, and provides access to senior level expertise in a variety of industries.

Sponsors must have a proven track record and personal investment in the project, clear exit strategy for the Fund with expected repayment within 5-7 years, and significant economic impact in the City of Detroit. Loan size is from $500,000 to $2.5 million. For more specific loan criteria for Business and Equipment Loans or Real Estate Loans or general information on Invest Detroit Detroit Investment Fund (DIF), visit http://www.investdetroit.com or call 313.259.6368.

Invest Detroit Foundation (IDF)

Invest Detroit Foundation is a 501(c) (3) organization and certified Community Development Financial Institution formed exclusively for the purpose of receiving and administering funds for charitable, educational and scientific purposes. IDF promotes a higher quality of life for distressed communities, primarily in the City of Detroit through attracting new industry, encouraging the development of business, housing, transportation and other community resources. IDF provides loans and financial assistance to promote community development and combat community deterioration and economic blight. The IDF loan programs provide funding, generally in the form of loans, to qualified applicants to encourage revitalization and development. In concert with operating the loan programs, IDF also conducts programmatic activities that include planning, spearheading and developing strategies for urban revitalization. The impact of the IDF loan programs includes the creation of jobs and training to the unemployed and persons of low income, and providing quality housing for the low-income community.

IDF Funds are financing resources aimed at encouraging projects where the necessary financing is not available from traditional sources, or may be available, but at high rates and restrictive terms. Financing may also be unavailable because of the poor credit risks of financing a project in the designated area. Projects will also be evaluated based on whether they have received support from local community groups, institutions and public agencies. Loans and the repayment of funds are offered upon terms and conditions that are not available from traditional private and public financing sources. IDF Loan Programs include: Lower Woodward Housing Fund, Predevelopment Funds, and Urban Retail Loan Fund. For more information on the Invest Detroit Foundation, call 313.259.6368 at Invest Detroit or visit http://www.investdetroit.com.

Pre-Development Loan Fund

Pre-development funds are intended to act as a catalyst for commercial, residential and mixed-use development projects in targeted areas in the City of Detroit. Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s pursuit of traditional financing. To be considered for a loan under this program, applicants must be able to contribute meaningful owners’ equity in their projects, present a viable business or project plan, and demonstrate a successful track record. Loan sizes range from $50,000 to $200,000 for projects within a targeted area of Detroit or for nonprofit and community development projects, the entire City of Detroit. For more information on Invest Detroit Pre-Development Loan Fund, including loan terms, contact Mary Seaberg King at 313.259.6368 or visit http://www.investdetroit.com.

New Markets Tax Credit Fund (MNTC)

The New Markets Tax Credit Fund (NMTC) Program attracts private businesses and development by offering tax credits worth 39% of the value of the investment in low-income communities, claimable over seven years. Invest Detroit CDE has received a $40 million NMTC allocation for 2009 from the U.S. Treasury’s CDFI Fund. The purpose of the New Markets Tax Credit is to support the development of commercial and mixed-use real estate projects in Detroit by expanding the availability, affordability, and access to commercial capital. Capital will be made available for real estate development, building improvements and new commercial activity.

Applicants must have relevant project experience and be able to contribute meaningful owners’ equity in their projects. Eligible projects must be located in the City of Detroit in qualified low income communities and highly distressed census tracts as defined by the CDFI Fund. Projects can be commercial projects or mixed-use real estate including housing units provided the residential component does not exceed 80% of the total project annual project revenue. Excluded project business types include for-sale residential projects, golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack or other facility used for gambling, and store for which the principal business is the sale of alcoholic beverages for consumption off premises.

The project budget is a minimum of $5 million and the investment must stay in the project for seven years. Fees will include upfront fee received at closing, an annual administrative fee and a backend fee at maturity. Other third party closing costs, including legal fees, title work, and other professional fees, are to be paid by borrower. Interest rates will be determined based on the source of leveraged funds. Security interest in the real estate and guarantees of the key owners is required. To learn about the application process and for more information, call 313.259.6368 or visit http://www.investdetroit.com.

Predevelopment Financing

Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s pursuit of traditional financing. Predevelopment loans may be utilized for commercial, residential and mixed-use development projects in targeted areas of Detroit. Loan sizes range from $50,000 to $200,000 for housing development projects including single, multi-family and mixed-use developments, and commercial projects that have potential for significant positive impact on the community. Loan uses include; land acquisition (intended for immediate release), environmental studies, legal work, tax credit consultants and fees, site planning and design, appraisals, survey work, and construction required to preserve the structural integrity of a building. For more information on the targeted area and loan criteria, call 313.259.6368 or visit http://investdetroit.com.

Real Estate Financing

Real estate financing may be utilized to support the development of commercial residential and mixed-use projects. Loans to experienced developers of residential real estate and neighborhood retail centers will be considered. Financing is intended for construction of apartments, lofts/condos and single family home developments, financing for commercial residential rental properties and retail centers, bridging tax credit equity, and purchase of real property intended for immediate development. Loans are to help the developer in meeting the requirements of traditional lenders and are typically subordinate to the senior lender, but will not exceed 50% of the equity required for the project. Available financing types include bridge loans to facilitate the timing gap of monetizing tax credits, construction loans, term loans (up to 7 years), and mortgage loans (up to 7 years). Transactions range from $250,000 to $2.5 million.

General Loan Criteria includes: the borrower (developer) must provide financial projections for the project which demonstrate its viability along with detailed budgets and demonstrated repayment capacity, the developer(s) must provide 3 years of financial statements and sufficient information to evaluate the developer’s cash flow and debt service capacity, and real estate loans require an equity contribution by the borrower/developer. For more information, call 313.259.6368 or visit http://www.investdetroit.com.

The MORE Program

Founded in 2007, the Matching Opportunities and Resources for Entrepreneurs (MORE) Program is a 501 (c) (3) public-private collaboration among hundreds of organizations including municipalities, universities, incubators, libraries, businesses, and foundations working together on a single economic development platform. It developed the web-based technology InsYght to diagnose the specific challenges that entrepreneurs and innovators face and instantly connect them to the business resources they need. Learn more about The MORE Program at http://www.TheMoreProgram.com or call 313.223.2525.

InsYght

InsYght is a free service that helps businesses to identify exactly what is available to support their needs. No matter what stage an idea or business is in, InsYght gives access to critical resources that fit the businesses unique profile. InsYght has collected detailed information about thousands of free or heavily discounted business resources available to Michigan entrepreneurs and innovators. The service uses unique differential diagnosis technology to help you identify exactly what your business needs and where to find it. Simply tell us what you need and InsYght will connect you to the right resources. To get started, visit http://insyght.co/ or call 313.223.2525.

Opportunity Resource Fund

Formerly known as the Michigan Interfaith Trust Fund, the Opportunity Resource Fund is a nonprofit 501 (c) (3) celebrating 25 years of working for social and economic justice. Supporting Michigan’s communities via the creation of decent and affordable housing, jobs and great commercial spaces, we are a catalyst for positive change. The new name and logo reflect our reenergized commitment to the mission and values we have lived since our inception in 1985. The Opportunity Resource Fund seeks to reach even more communities. The purpose, while updated to incorporate a larger audience, continues to accept loans and investments from individuals and organizations to provide these funds to those denied traditional access to capital. For more information, call 313.964.7300 or visit http://www.oppfund.org.

Mixed Use Loans

The Opportunity Resource Fund offers one-stop financing to developers of mixed use projects that involve both commercial and residential space. Potential borrowers need only submit one application and will have only one contact person with the Opportunity Resource Fund. Eligible projects are those that combine affordable housing with qualifying commercial real estate development. Generally, the Opportunity Resource Fund makes short-term loans of six years or less, although longer terms would be considered for low income housing tax credit projects. Interest rates vary from six to nine percent (6% – 9%). Eligible purposes include: Real estate option/acquisition; Pre-development costs (e.g. legal fees, design costs, appraisals, etc.); Construction financing and rehabilitation financing; Bridge loan; and Permanent financing. For more information the Opportunity Resource Fund Mixed Use Loans and how to apply for a loan, visit http://oppfund.org/lending/mixed-use-loans/ or call 313.964.7300.

State of Michigan

Commercial Rehabilitation Act Exemption

The Commercial Rehabilitation Act Exemption affords a tax incentive for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District. Exemptions are approved for a term of 1-10 years, as determined by the local unit of government. The property taxes are based upon the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the certificate. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC. For more information, visit http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-222387--,00.html or call 517.373.2408.

Obsolete Property Rehabilitation Act Exemption (OPRA)

Detroit may establish obsolete property rehabilitation districts. The Obsolete Property Rehabilitation Act (OPRA) provides property tax exemptions for commercial and commercial housing properties that are being rehabilitated and meet the requirements of the Act. Properties must meet eligibility requirements including a statement of obsolescence by the local assessor. The property must be located in an established Obsolete Property Rehabilitation District and qualify as a commercial property or commercial housing property that is a “facility” (contaminated), “blighted”, or “functionally obsolete.” Personal property is not eligible.

Buildings and improvements within these districts are eligible for exemption from ad valorem property taxes for a term of 1 to12 years as determined by the local unit of government. The property taxes for the rehabilitated property are based on the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the exemption. Additionally, the State Treasurer may approve reductions of half of the school operating and state education taxes for a period not to exceed 6 years for 25 applications annually. A new exemption will not be granted after December 2016, but an exemption that is in effect will continue until the certificate expires.

Applications are filed, reviewed and approved by the local unit of government before rehabilitation work begins, and are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of OPRA certificates. Exemptions are not effective until approved by the STC. If you have questions about this incentive or how to take advantage of it, please call DEGC Business Development Intake at 313.237.4630 or visit http://www.degc.org. You may also visit http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-213177--,00.html.

Tax Abatement Program

The City of Detroit- Planning and Development Department administers the following tax incentive programs: Public Act 146 of 2000 the Obsolete Rehabilitation Act, which provides for reduced property taxes for up to 12 years on improvements to existing rental residential units and/or commercial structures or structures being converted to rental residential and/or commercial space. For more information, visit https://www.detroitmi.gov/?TabId=630 or for information about applying for the tax abatement program or upcoming projects, contact the Planning and Development Department at 313.224.4521.

Wayne County Land Bank Program

The Wayne County Land Bank is a governmental authority whose purpose is to manage abandoned, underutilized, or blighted property and turn it into a productive use. The Land Bank encourages investment, revitalization, and rehabilitation in Wayne County through a number of programs that provide economic incentives to owners to rehabilitate their property, sell abandoned property at affordable rates, work with non-profit organizations and developers to provide economic support for new developments, and demolish and maintain blighted property to create cleaner, safer neighborhoods.

Abandoned and dilapidated properties in the neighborhoods are often in that condition because it cannot be sold due to large tax bills, water liens, title problems, etc. The Land Bank has a number of tools to quickly and efficiently solve those problems by cleansing title, holding property tax free and eliminating tax liens. The Land Bank can then put the property into the hands of those who will use it productively.

The County also uses the power of the Land Bank to operate its TURBO program. The Land Bank TURBO program offers additional tax breaks for businesses that make significant investments in Wayne County. TURBO reimburses investors by giving cash back to property owners who make significant real estate investments in Wayne County. Wayne County Land Bank only works with land that is tax-reverted or is voluntarily contributed. The Land Bank can never condemn property or forcibly take someone’s property under eminent domain. For additional information on the Wayne County Land Bank Program, please call 313.224.3615 or visit http://www.treasurer.waynecounty.com/landbank.htm .

Economic Development

Detroit LISC

The Detroit Local Initiatives Support Corporation (LISC) is a local organization within the national LISC network. Detroit LISC provides loans, lines of credit, grants, recoverable grants, and equity investments to help community development organizations revitalize their neighborhoods. Community projects typically include: For-sale and rental housing, Community facilities (childcare centers, schools, health care facilities, playing fields), and Economic development projects, including industrial, office, and retail building.

Detroit LISC provides creative and flexible financial products that meet a variety of real estate development needs and works with groups to consult, problem solve, and assist with all types of financing opportunities: Other products LISC provides are Predevelopment and acquisition loans, construction loans, working capital loans and lines of credit, guarantees, mini permanent loans, low income housing tax credits, new markets tax credit. More than just financing, LISC supports community based organizations with technical and management assistance and local, statewide and national policy support. For more information, call Detroit LISC at 313.596.8222 or visit http://www.detroit-lisc.org/index.html.

Detroit/Wayne County Port Authority

The Detroit/Wayne County Port Authority was created in 1978 by the Michigan State Legislature to plan, develop and promote the greater Detroit area as a freight transportation and distribution hub for the Great Lakes. The Port Authority oversees and promotes commercial and recreation activities along 32 miles of the Detroit River from Lake St. Clair to the Wayne/Monroe County border. The Port Authority is the primary public conduit between private sector businesses in the Port of Detroit. In this role the Port Authority offers assistance in capital finance, development, applications and disbursement of public sector and foundation grant programs.

Economic Development Program

This program provides Creative Structured Financing Solutions in the following ways:

Unique and Creative Capabilities

Synthetic leasing (off-balance sheet financing) – allows publicly traded companies, or constituent units of government, to strengthen their balance sheets and financial ratios
Capital operating and synthetic lease options available with renewable options/ balloon payments
DWCPA is tax-exempt from real and personal property – up front cost savings for materials on new construction projects
DWCPA can enter into contracts as lessee or lessor
Rates can be tied very closely to debt service, preventing typical developer “markup”
Client maintains control of construction decisions and operations
100% debt financed
Possible for the “private partner” to capture depreciation through the asset

Streamlined Approval Process

Immediate Issuance of bonds - no voter approval required (payable solely by revenues)
Quick and "more corporate" decision-making

Unlimited Capacity

Not a debt of any constituent unit (City of Detroit, Wayne County), nor a pledge of credit
Help corporations incorporate favorable financial ratios, maintain good credit, borrowing capacities

For more information on Detroit/Wayne County Port Authority's Economic Development Program , visit http://www.portdetroit.com or call 313.259.5091.

Invest Detroit

Invest Detroit represents the vision of the Board of Directors and management of the Detroit Investment Fund (DIF), which was created and funded in 1995 by members of Detroit Renaissance, now known as Business Leaders for Michigan. In 2010, the DIF Board and management team enhanced and transitioned the capabilities of DIF to create Invest Detroit, which serves as an umbrella entity for DIF and other for-profit and non-profit managed funds. The efforts of Invest Detroit are intended to promote job creation, expansion of the tax base and an improved quality of life for the communities it serves. Invest Detroit’s financing tools support a variety of needs including business expansion and purchase of equipment, real estate development and redevelopment, predevelopment costs, neighborhood retail, emerging business’ development costs, and New Markets Tax Credits. Loans for strategic projects are considered when the potential exists for a long-term, clear benefit which is critical to the economic development of the City of Detroit. This emphasizes the Fund’s commitment to economic revitalization by financing projects that would likely not be completed without the participation of Invest Detroit.

Detroit Investment Fund (DIF)

The Detroit Investment Fund (DIF) is a source of private sector financing designed to be a catalyst for investment in Detroit by financing qualified commercial projects and entities to stimulate economic development and job creation. The DIF provides gap financing intended to leverage owner equity so that the transaction merits traditional bank/senior lender financing. Investments in strategic projects are considered when potential exists for a significant long-term, clear benefit to the economic development of Detroit that would likely not be completed without the DIF.

Sponsors must have a proven track record and personal investment in the project, clear exit strategy for the Fund with expected repayment within 5-7 years, and significant economic impact in the City of Detroit. Loan size is from $500,000 to $2.5 million. For more specific loan criteria for Business and Equipment Loans or Real Estate Loans or general information, visit http://www.investdetroit.com or call 313.259.6368.

Michigan Community Revitalization Program (MCRP)

The MCRP is a new initiative program available from the Michigan Strategic Fund (MSF) in cooperation with the Michigan Economic Development Corporation (MEDC). It is designed to promote community revitalization that will accelerate private investment in areas of historical declining values, contribute to Michigan’s reinvention as a vital, job generating state, foster redevelopment of functionally obsolete or historic properties, reduce blight, and protect natural resources of this state. The program is designed to provide grants, loans, or other economic assistance for eligible investment projects in Michigan. Generally, no funds will be disbursed until the project is verified as complete.

Eligible property meets one or more of the following conditions: facility, historic resource, blighted, functionally obsolete or adjacent or contiguous to a property described above, if the development of the adjacent or contiguous property is estimated to increase the taxable value of the property described above. Eligible investment to an eligible property means one or more of the following: any alteration, construction, improvement, demolition or rehabilitation of buildings, site improvement, the addition of machinery, equipment or fixtures, and
architectural, engineering, surveying and similar professional fees for a project but not certain soft costs of the eligible investment as determined by the MSF.

The MSF’s support will not exceed 25% of the total eligible investment for a single project, and in no event exceed a total of $10,000,000 for loan agreements or $1,000,000 for grant agreements, or $10,000,000 for a combination of support. Any grant or loan under the program will be performance based. Grants and loans will include flexible terms and conditions and may be assignable upon approval of the MSF.

Funding agreements will require performance based milestones for disbursements; periodic reporting of data, financial information, and additional information including periodic reporting after completion of a project. Support for a single project cannot exceed 25% of the eligible investment nor exceed a total of $10 million for any project (including any combination of loan, grant, or other economic assistance). Grants may not exceed $1 million for any project.

For more information on the MCRP incentives, visit http://www.michiganadvantage.org or contact the CATeam Specialist assigned to your territory. Also, you can contact the MEDC Customer Assistance Center at 517.373.9808.

Michigan Economic Developers Association (MEDA)

MEDA exists to advance economic development in Michigan by providing a range of services and programs to enhance economic development skills. By offering programs, education classes, public relations, networking opportunities, advocacy, and other programs and services. MEDA makes it possible for economic development professionals statewide to be up to date/educated on the most successful economic development practices.

Certified Business Park (CBP) Program

The Michigan CBP has set the standard for business/industrial parks in Michigan for over 40 years, letting prospective occupants know that they can expect to find uniformity and high-quality characteristics within certified parks and that their investment in that property is secure. Sites in Certified Business Parks are shovel-ready. The CBP Program is a revamp of the Certified Industrial Park (CIP) Program. Any municipality/owner/developer can prepare a park based on the CBP standards. There is no minimum acreage requirement. For purposes of certification, conforming zoning uses would include all activities typical for a business/industrial park setting with the exception of residential and retail. The local zoning ordinance or protective covenants will define those uses allowed. For applications, please contact MEDA at Post Office Box 15096, Lansing, Michigan 48901-5096; or call
517.241.0011; or fax to 517.241.0089; or visit http://cbp.medaweb.org; or email [email protected].

Michigan Advantage - Michigan Economic Development Corporation (MEDC)

MIichigan Community Development Block Grant Community Development Initiatives

The Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation SM (MEDC), administers the economic and community development portions of the Community Development Block Grant (CDBG) program. CDBG is a federal grant program utilizing funds received from the U.S. Department of Housing and Urban Development (HUD). Funds are used to provide grants to eligible counties, cities, villages, and townships, usually with populations under 50,000, for economic development, community development, and housing projects. This fact sheet provides a broad overview of the community development portions of the program that the MEDC administers, including Blight Elimination, Façade Improvements, Downtown Public Infrastructure and Signature Building Acquisition. More specific information, including match and program requirements, can be found within the CDBG Application Guide that was approved by the Michigan Strategic Fund in June 2012. The typical process for approval of CDBG funds can take between three to five months until actual funds can be spent or contracts signed. In order to receive consideration for CDBG approval, initial contact should be made with the appropriate Community Assistance Team (CATeam) member. For more information, contact the MEDC CustomerAssistance Center at 517.373.9808 or visit www.MichiganAdvantage.org.

Blight Elimination Grants

Use of the Blight Elimination Program provides communities with financial assistance to remove and improve areas anywhere within the community that is designated a slum or blighted area, as defined by the Brownfield Redevelopment Financing Act 1996 P.A. 381, MCL 125.2652 (e)(i-iv) and (vii). Eligible under this activity would be property acquisition, clearance/demolition, historic preservation, and building rehabilitation (only to the extent necessary to eliminate specific conditions detrimental to public health and safety). Ineligible activities for this initiative include privately-owned structures (unless related to renovation), exclusively residential structures, demolition of historic structures and state-owned buildings, except for Land Bank properties. For more information, contact the MEDC Customer Assistance Center at 517.373.9808 or visit www.MichiganAdvantage.org.

Downtown Infrastructure Grants

The Downtown Infrastructure Program enables a community to improve its downtown's infrastructure quality and reduce redevelopment costs when tied to new commercial/mixed-use development activities that require additional infrastructure to create new economic opportunities. Economic opportunities the creation of full-time equivalent (FTE) positions, of which at least 51% of the created positions will be held by persons living in a LMI household. Examples of Eligible Grant Funded Activities include roads; curbs and gutters; storm sewers; water mains; sanitary sewer mains; sidewalks; bike paths; lighting; landscaping; boardwalks; park/seating areas and public parking. Public infrastructure also includes demolition necessary to undertake the above activities. Infrastructure activities must be publicly-owned and maintained, unless it is a privately-owned utility. For more information, contact the MEDC Customer Assistance Center at 517.373.9808 or visit www.MichiganAdvantage.org.

Façade Improvement Grants

The Façade Improvement Program is structured to provide commercial/mixed-use building façade improvements to minimize deterioration of traditional downtowns. This program is based on the premise that the exterior improvements will stimulate additional private investment in the buildings and the surrounding area, and attract additional customers, thereby resulting in additional downtown economic opportunities. Eligible under this activity would be rehabilitation and reconstruction of buildings. Proposed projects are expected to meet the national objective of either benefiting a population of individuals of whom at least 51% reside in Low and Moderate Income (LMI) households, or projects that will result in the creation of full-time equivalent (FTE) positions of which at least 51% of the created positions will be held by persons living in LMI. Preference will be given to projects with job creation commitments. To learn more about this program and which improvements are eligible for grant funding, matching funds, or ineligible, visit www.MichiganAdvantage.org or contact the MEDC Customer Assistance Center at 517.373.9808.

Signature Building Acquisition Grants

The Signature Building Acquisition Program is available for the acquisition and rehabilitation of vacant, partially vacant or substantially vacant and underutilized buildings located in their traditional downtown districts. The community receiving the grant can assist in funding the acquisition of the building, allowing the developer to lower his overall project costs and devote more capital to the rehabilitation of the building. It is expected that the end user will spend at least the amount of the acquisition cost to improve the inside of the building and will result in the creation of full-time equivalent (FTE) positions, of which at least 51% of the created positions will be held by persons living in a LMI household. CDBG funding can only be utilized for property acquisition activities. No more than 75% of appraised value, based on a recent appraisal that has been confirmed, will be granted. Ineligible activities for this initiative include exclusively residential structures; government-owned buildings, except for Land Bank properties, in-kind donations, renovation of building, appraisals, and structural analysis or other soft costs. For more information, contact the MEDC Customer Assistance Center at 517.373.9808 or visit www.MichiganAdvantage.org.

Nonprofit Finance Fund® (NFF®)

Since 1980, Nonprofit Finance Fund® (NFF®) has made over $250 million in loans to nonprofits in support of over $1.4 billion in projects. Our financing helps nonprofits manage growth, build and renovate facilities, balance government contract payments and cash flow and bridge capital campaigns, so organizations can better serve their clients and communities. As a federally recognized Community Development Financial Institution (CDFI) with almost 30 years of experience financing nonprofits, NFF is flexible and tailors loans to individual clients based on their unique financial story, plans and capacity. NFF® loans can help your organization:

Purchase, build or renovate a facility, including leasehold improvements
Upgrade equipment necessary to your organization's operation
Manage timing of receivables from government grants or capital campaigns
Expand programs or grow an earned income or social venture
Temporarily smooth cash flow to meet day-to-day operating cash needs

NFF loans typically range between $100,000 and $2 million and are used for facility loans, working capital loans, and equipment loans.

New Markets Tax Credit Program (NMTC)

The New Markets Tax Credit Program (NMTC) program, administered by the CDFI Fund of the US Treasury Department, uses tax credits to attract private investment to low-income communities. Nonprofit Finance Fund (NFF) has been awarded $191-million in tax credit allocations since 2007, which we are using to make flexible financing available to nonprofit borrowers in these communities. Our allocations have helped finance health centers, a nonprofit theatre, headquarters for social services providers, charter schools, and a statewide food bank, among others.

In total, NFF has received $151 million New Markets Tax Credit (NMTC) allocation to attract private capital for investment in low-income communities. NMTC loans are priced reasonably and available for community facility projects over $5 million that involve acquisition, substantial renovations, leasehold improvements, or new construction of community spaces such as charter schools, health clinics, community centers, arts & cultural spaces, and others.

For more information, call the Midwest office at 313.965.9145 or visit NFF's website at http://nonprofitfinancefund.org.

Section 108 Loan Guarantee Program, Economic Development Initiative and Brownfield Economic Development Initiative

Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. The program allows local governments to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization project that can renew entire neighborhoods. Loan commitments are often paired with Economic Development Initiative (EDI) or Brownfield Economic Development Initiative (BEDI) grants, which can be used to pay predevelopment costs of a Section 108-funded project. They can also be used as a loan loss reserve (in lieu of CDBG) to write-down interest rates, or to establish a debt services reserve. For more information about the Section 108 Loan Guarantee Program, Economic Development Initiative and Brownfield Economic Development Initiative, visit http://www.hud.gov/offices/cpd/communitydevelopment/programs/108.

Historic Preservation

In 2011, a new bill passed that repealed the Michigan Business Tax and replaced it with a 6% Corporate Income Tax (CIT). Developers who have received Brownfield and Historic credits can retain those credits if they continue to file the Michigan Business Tax. Brownfield and Historic tax credits are not included in the new CIT.

State of Michigan

Federal Tax Credits for Historic Properties

Federal tax incentives are available for owners of National Register-listed income-producing properties who rehabilitate their properties. The projects must be certified by the National Park Service, in consultation with the State Historic Preservation Office (SHPO). Downloadable guidelines and forms, and links to relevant websites can be found on the Federal tax credit page at http://www.michigan.gov/mshda/0,1607,7-141-54317_18873_18887-54165--,00.html. For more information on, contact the SHPO at 517.373.1630 or write [email protected].

Historic Preservation Grant Program

The National Historic Preservation Act of 1966 was amended in 1980 to provide for a federal-state-local preservation partnership. Grant funds were made available from the National Park Service through the State Historic Preservation Offices (SHPO) for Certified Local Governments (CLGs) to initiate and support historic preservation activities at the local level. The purpose of the CLG grant program is to help local communities develop or strengthen their historic preservation program. CLG grants can be used to identify, register, rehabilitate, and protect resources that are listed in or eligible for listing in the National Register of Historic Places. The grants can also be used for preservation planning and education. Detroit is designated as one of 23 Michigan CLGs.

The Historic Preservation Fund is the source of a 60-40 matching grant-in-aid program paid on a reimbursement basis. The federal funds provided through the grant must be matched by the grant recipient with private funds, local government funds, in-kind services, state funds, certain federal funds (limitations apply), donated services and/or donated equipment or material. For more information on the Historic Preservation Grant Program, visit http://www.michigan.gov/mshda/0,4641,7-141-54317_18873-54145--,00.html.

For information about any SHPO program, call 517.373.1979, or write via email to [email protected], or write to Michigan State Historic Preservation Office, 702 W. Kalamazoo St., P.O. Box 30740, Lansing, MI 48909-8240. The historic preservation fund CLG grant manuals are available on the SHPO website at http://www.michigan.gov/shpo. The Michigan Historic Preservation Certified Local Government Grant Manual for Rehabilitation & Rehabilitation Planning Projects Fiscal Year 2012 can be found at http://www.michigan.gov/documents/mshda/mshda_shpo_20111104_clg_manual_rehab_367963_7.pdf

Housing Development

AFL-CIO Housing Investment Trust Real Estate Finance (HIT)

Financing is offered by the Trust for the new construction and substantial rehabilitation of rental apartments, senior housing, and health care facilities, with an emphasis on housing for low-, moderate- and middle-income working families. The Trust also makes financing available for the preservation of affordable rental housing. HIT Financing Programs meet an array of needs related to the development, rehabilitation, or preservation of real estate, including: construction financing, permanent financing, fixed or floating rate forward commitments, and secured bridge loans. To protect its investors from a loss of principal and to provide the most attractive terms to developers, the Trust structures its financing with credit enhancements provided by a variety of sources, including the Federal Housing Administration (FHA), Ginnie Mae, government-sponsored enterprises (GSE) such as Fannie Mae and Freddie Mac, and state and local agencies.

The Trust’s Multifamily staff has technical expertise in structuring layered affordable housing financing using a variety of public and private capital sources, including low-income housing tax credits, federal and state historic tax credits, Home Investment Partnership Program (HOME), Community Development Block Grants (CDBGs), the Federal Home Loan Bank’s Affordable Housing Program (AHP), Community Investment Program (CIP), and other programs. The Trust offers the following financing programs:

FHA-Insured Construction and Permanent Loan Program for multifamily housing, nursing homes and intermediate care facilities.
GSE Credit-Enhanced Construction/Permanent Loan Program for multifamily housing for fixed-rate construction and permanent loans.
GSE Credit-Enhanced Forward Commitment Permanent Loan Program for multifamily housing.
State Housing Finance Agency Programs for financing affordable to market-rate housing.
Tax Credit Bridge Loan Investment Program for loans that bridge low-income housing tax credit investor payments to owners of multifamily tax credit projects.

Program eligibility, requirements, size, and terms vary. Loan size can range between $2 million to $10 million and loan terms can range between 30 years to up to 40 years plus the construction period. For more information on the AFL-CIO Housing Investment Trust Real Estate Finance programs, call 202.331.8055 and ask to speak with the Multifamily Finance Department or visit http://www.aflcio-hit.com/.

Construction/Permanent Loan Program for Multifamily Housing

Under this program, the Trust provides fixed-rate combined construction and permanent financing for market-rate and affordable multifamily housing. The construction loan is administered by a participating lender (rated A or better), which takes the construction and lease-up risk by providing a letter of credit or other form of guarantee acceptable to the Trust. The Trust funds the loan based on a monthly draw schedule. The permanent loan is originated on a forward commitment basis and is securitized after loan closing. The Trust purchases the mortgage-backed security at a pre-determined, fixed-rate, which is set and locked prior to construction. Eligible projects include new construction or substantial rehabilitation of affordable and market-rate multifamily rental housing projects. Loan sizes start at $3 million with loan terms of up to 30 years. For more information on Construction/Permanent Loan Program for Multifamily Housing, call 202.331.8055 or visit http://www.aflcio-hit.com.

Charter One Bank Homebuilder Loan Programs

Charter One has a number of programs that are tailored to meet the needs of local developers. They include acquisition financing, lines of credit, letters of credit, and construction loans. Additional services include reposition financing, cash management, development financing, mini perm loans, bridge loans, credit lease tenant financing, interest rate management products, access to commercial mortgage-backed security (cmbs) placements, debt distribution, equity distribution, private placements, Reit and subscription line financing, correspondent credit lease, and permanent financing solutions. Charter One also offers programs for first time home buyers to experienced real estate investors. They have zero down loans, 100% financing, rates in the mid 5%’s on Jumbo and Super Jumbo loans, and work with all types of credit. For information on Charter One Bank Homebuilder Loan Programs, contact Thomas Strausser at 248.901.1341.

FHA HUD 203(k) Loan Program

The Federal Housing Administration (FHA), part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. The Section 203(k) program is the Department’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. The program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: To purchase a dwelling and the land on which the dwelling is located and rehabilitate it. To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it. To refinance existing liens secured against the subject property and rehabilitate such a dwelling. Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.

A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property. The Department also permits Section 203(k) mortgages to be used for individual units in condominium projects that have been approved by FHA.

Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. For more information on the FHA HUD 203(k) Loan Program, visit http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou or speak to a 203(k) lender found at http://www.hud.gov/local/mi/news/fhalender.cfm

Great Lakes Capital Fund for Housing (GLCF)

The GLCF helps responsible corporations invest in affordable housing and community economic development activities. GLCF raises capital from corporations and financial institutions, and invests these resources into real estate development partnerships. The partnerships receive essential equity for their developments. The investors receive a competitive internal rate of return on their investment through tax benefits; and the community receives high quality, affordably-priced housing and/or commercial developments that generate social and economic benefits for area residents. For more information on Great Lakes Capital Fund for Housing, visit http://capfund.net or call the Detroit Office at 313.841.3751.

Invest Detroit

Invest Detroit represents the vision of the Board of Directors and management of the Detroit Investment Fund (DIF), which was created and funded in 1995 by members of Detroit Renaissance, now known as Business Leaders for Michigan. In 2010, the DIF Board and management team enhanced and transitioned the capabilities of DIF to create Invest Detroit, which serves as an umbrella entity for DIF and other for-profit and non-profit managed funds. The efforts of Invest Detroit are intended to promote job creation, expansion of the tax base and an improved quality of life for the communities it serves. Invest Detroit’s financing tools support a variety of needs including business expansion and purchase of equipment, real estate development and redevelopment, predevelopment costs, neighborhood retail, emerging business’ development costs, and New Markets Tax Credits. Loans for strategic projects are considered when the potential exists for a long-term, clear benefit which is critical to the economic development of the City of Detroit. This emphasizes the Fund’s commitment to economic revitalization by financing projects that would likely not be completed without the participation of Invest Detroit.

Invest Detroit Foundation (IDF)

Invest Detroit Foundation is a 501(c)(3) organization and certified Community Development Financial Institution formed exclusively for the purpose of receiving and administering funds for charitable, educational and scientific purposes. IDF promotes a higher quality of life for distressed communities, primarily in the City of Detroit through attracting new industry, encouraging the development of business, housing, transportation and other community resources. IDF provides loans and financial assistance to promote community development and combat community deterioration and economic blight. The IDF loan programs provide funding, generally in the form of loans, to qualified applicants to encourage revitalization and development. In concert with operating the loan programs, IDF also conducts programmatic activities that include planning, spearheading and developing strategies for urban revitalization. The impact of the IDF loan programs includes the creation of jobs and training to the unemployed and persons of low income, and providing quality housing for the low-income community.

IDF Funds are financing resources aimed at encouraging projects where the necessary financing is not available from traditional sources, or may be available, but at high rates and restrictive terms. Financing may also be unavailable because of the poor credit risks of financing a project in the designated area. Projects will also be evaluated based on whether they have received support from local community groups, institutions and public agencies. Loans and the repayment of funds are offered upon terms and conditions that are not available from traditional private and public financing sources. IDF Loan Programs include: Lower Woodward Housing Fund, Predevelopment Funds, and Urban Retail Loan Fund. For more information on the Invest Detroit Foundation, call 313.259.6368 at Invest Detroit or visit http://www.investdetroit.com.

Lower Woodward Housing Fund (LWHF)

The Lower Woodward Housing Fund (LWHF) is a $20 million fund intended to promote the development of a downtown neighborhood through loans to qualified residential and mixed-use projects that will significantly increase the residential population of Detroit’s downtown core.  The LWHF is an initiative of the Lower Woodward Improvement Agenda and is designed to work concurrently with other Lower Woodward Initiatives that are designed to improve the downtown Central Business District core, improve the vitality of the city by creating a 24-hour residential community and provide momentum for downtown Detroit’s residential revitalization. Loan size is determined by the needs and impact of the project along with the risk associated with the transaction, but not to exceed $2.5 million. For more information, contact Mary Seaberg King at 313.259.6368 or visit http://www.investdetroit.com.

Pre-Development Loan Fund

Pre-development funds are intended to act as a catalyst for commercial, residential and mixed-use development projects in targeted areas in the City of Detroit. Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s pursuit of traditional financing. To be considered for a loan under this program, applicants must be able to contribute meaningful owners’ equity in their projects, present a viable business or project plan, and demonstrate a successful track record. Loan sizes range from $50,000 to $200,000 for projects within a targeted area of Detroit or for nonprofit and community development projects, the entire City of Detroit. For more information on the Pre-Development Loan Fund, including loan terms, contact Mary Seaberg King at 313.259.6368 or visit http://www.investdetroit.com/managed-funds/predevelopment-loan-fund.

Predevelopment Financing

Predevelopment financing assists both individual developers and community organizations by providing funding for costs incurred in the early stages of a project, such as environmental studies or appraisals that facilitate the project’s pursuit of traditional financing. Predevelopment loans may be utilized for commercial, residential and mixed-use development projects in targeted areas of Detroit. Loan sizes range from $50,000 to $200,000 for housing development projects including single, multi-family and mixed-use developments, and commercial projects that have potential for significant positive impact on the community. Loan uses include; land acquisition (intended for immediate release), environmental studies, legal work, tax credit consultants and fees, site planning and design, appraisals, survey work, and construction required to preserve the structural integrity of a building. To be considered for a loan under this program, applicants must be able to contribute meaningful owners’ equity in their projects, present a viable business or project plan, and demonstrate a successful track record. For more information on the targeted area and loan criteria, call 313.259.6368 or visit http://investdetroit.com/your-financing-needs/predevelopment/.

Real Estate

Real estate financing may be utilized to support the development of commercial residential and mixed-use projects. Loans to experienced developers of residential real estate and neighborhood retail centers will be considered. Financing is intended for construction of apartments, lofts/condos and single-family home developments, financing for commercial residential rental properties and retail centers, bridging tax credit equity, and purchase of real property intended for immediate development. Financing assists the developer in meeting the requirements of traditional lenders and are typically subordinate to the senior lender, but will not exceed 50% of the equity required for the project. Available loans include bridge loans to facilitate the timing gap of monetizing tax credits, construction loans, term loans (up to 7 years), and mortgage loans (up to 7 years), and range from $250,000 to $2.5 million.

General Loan Criteria includes the borrower (developer) must provide financial projections for the project which demonstrate its viability along with detailed budgets and demonstrated repayment capacity, the developer(s) must provide 3 years of financial statements and sufficient information to evaluate the developer’s cash flow and debt service capacity, and real estate loans require an equity contribution by the borrower/developer. For more information, visit http://investdetroit.com/your-financing-needs/real-estate/ or call 313-259-6368.

Investor Loan Program

The Investor Loan and CHDO Investor Loan Program provides funds to assist in the rehabilitation of substandard rental housing units to meet HUD Section 8 Housing Quality Standards or construction of rental housing to low- or very low-income persons in the City of Detroit. This program encourages for-profit and not-for-profit developers to rehabilitate and/or construct rental properties of 20 or more units.

Funds are available to developers who agree to maintain affordable housing for up to 15 years for rehabilitation projects and 20 years for new construction projects. The developers must also agree to restrict those units to low-income households. The City finances a portion of the total development costs (pre-development, acquisition, soft costs and renovation or new construction) with HOME funds as a deferred payment loan, and below-market interest rate loan or other loan variations required to maintain rents affordable to the targeted income populations. Maximum amount of assistance varies with unit size: efficiency units - $45,000; 1-bedroom units - $60,000; 2-bedroom units -$65,000; and 3-4 bedroom units - $75,000. For more information on the Investor Loan Program, visit http://www.detroitmi.gov/Default.aspx?tabid=1956 or contact Housing Services Division at 313.224.3461 for details on the availability of funds and how to apply.

National Homeownership Retention Program

Loan modification programs available to eligible borrowers under this program must have received a qualifying subprime mortgage or a Pay Option adjustable-rate mortgage prior to 2008, and the property must be a 1-4 unit owner-occupied residential property. Loan modifications include FHA refinance under the HOPE for Homeowners Program, and programs for Subprime 2-, 3-, 5-, 7- and 10-Year Hybrid ARM borrowers, Pay Option ARM borrowers, and other subprime borrowers. There are various qualification requirements as well as different loan modifications options depending on the home loan. For more information on the National Homeownership Retention Program and additional assistance programs, call 313.202.3086 or visit http://homeloanhelp.bankofamerica.com/en/nhrpfactsheet.html .

Opportunity Resource Fund

Formerly known as the Michigan Interfaith Trust Fund, the Opportunity Resource Fund is a nonprofit 501 (c) (3) celebrating 25 years of working for social and economic justice. Supporting Michigan’s communities via the creation of decent and affordable housing, jobs and great commercial spaces, we are a catalyst for positive change. The new name and logo reflect our reenergized commitment to the mission and values we have lived since our inception in 1985. The Opportunity Resource Fund seeks to reach even more communities. The purpose, while updated to incorporate a larger audience, continues to accept loans and investments from individuals and organizations to provide these funds to those denied traditional access to capital. For more information on the Opportunity Resource Fund, call 313.964.7300 or visit http://www.oppfund.org.

Affordable Housing

The Opportunity Resource Fund lends primarily to nonprofit 501(c) (3) or 501(c) (4) organizations with a stated mission of creating affordable housing. For-profit entities and local units of government may also be eligible. The Fund is a statewide organization, and provides loans throughout Michigan. Loans are provided for all phases of affordable housing development and can be used for pre-development costs, construction, rehabilitation and acquisition. Projects may include the development of single or multi-family rental, lease-purchase, homeownership and cooperative living units. Loans may also be obtained for permanent financing and bridge loans. Borrowers can include: housing development corporations, cooperatives and trusts, social service agencies, credit unions, faith-based institutions, and community development corporations. Generally, the Fund makes short-term loans of six years or less at interest rates of six to nine percent (6% – 9%). A two percent (2%) origination fee is charged at closing, and may be financed. Security is typically in the form of a real estate mortgage on the project itself, but may be on other property. All collateral shall be insured. For more information on the Opportunity Resource Fund Affordable Housing, call 313.964.7300 or visit http://www.oppfund.org.

Fresh Opportunity Mortgage Program

The Opportunity Resource Fund’s new program provides financing to homebuyers that normally would be unable to obtain credit. This program is an effort to revitalize Metro Detroit neighborhoods and other select areas of Michigan. The following are some highlights from this program.

Loan amounts from $10,000 to $200,000
No prepayment penalties
No ARMs, reverse negative amortization or balloon loans
No monthly mortgage insurance
Financing with as little as 3% down (maximum loan-to-value is 97%)
No minimum credit score required (subject to underwriting approval)
Down payment assistance is accepted
Flexible In-house underwriting
10, 15 and 30 year fixed terms available

For more information on the Opportunity Resource Fund's Fresh Opportunity Mortgage Program, visit http://oppfund.org/lending/single-family-mortgage/. To find out if you are eligible, contact John Helbling, Loan Officer # 21505 at 313.964.7300, ext. 109.

State of Michigan

Helping Michigan’s Hardest Hit Homeowners

The Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) acting through the Michigan State Housing Development Authority (MSHDA) has received federal funds from the U.S. Department of Treasury to help homeowners who are at high risk of default or foreclosure. Through A Step Forward: MHA designed programs help homeowners who have had a financial hardship. The programs include: Unemployment Mortgage Subsidy Program, Mortgage Loan Rescue Program, and Principal Curtailment Program. A Help for Hardest Hit advisor will help determine which program homeowners may be eligible for and work with the lender to provide assistance; however, Lenders are not required to participate in all three programs. Homeowners can apply directly for loan assistance at http://www.stepforwardmichigan.org. For additional information, visit http://www.michigan.gov/mshda/0,1607,7-141--235359--,00.htm or call 866.946.7432 to be directed to an advisor.

Michigan State Housing Development Authority (MSHDA)

The Michigan State Housing Development Authority (MSHDA), established in 1966, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues. MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. Proceeds of the bonds and notes are loaned at below-market interest rates to developers of rental housing, and also fund home mortgages and home improvement loans. MSHDA also administers various federal housing programs. For more information, visit http://michigan.gov/mshda/0,4641,7-141-7559-217947--,00.html or call 313.456.3540.

The Michigan State Housing Development Authority helps first-time homebuyers through:

Special loans and programs to make your mortgage affordable.
Down payment help up to $7,500.
Partnerships with banks, credit unions and mortgage companies near you, so you can work with people you trust.
Friendly homeownership counselors who will give you straight answers to your homebuying questions.

Using a MSHDA loan to help you buy your home is a great way to start.

MSHDA 30-year, fixed-rate loans are safe and secure.
You’ll work with a bank, credit union or mortgage company that’s a trusted MSHDA partner.
We help prepare home budgets and offer credit repair strategies.
MSHDA has special FHA loans, veteran loans and rural loans. We’ll help you find the loan that’s right for you.
We have ownership counselors to help with answers to your homebuying questions and valuable homeownership classes are free.

We Visit www.OwnMIHome.org for more information.

MSHDA Cities of Promise Loan Fund for Recent College Graduates

The reduced rate 30-year fixed rate conventional loan is available to encourage home ownership in the Cities of Promise by college graduates who received a qualifying degree within the 3 years prior to the date of the loan application. The property must be located within the city limits of one of the designated Cities of Promise, which include Benton Harbor, Detroit, Flint, Hamtramck, Highland Park, Muskegon Heights, Pontiac, and Saginaw. This is a Pilot Loan Program and is available with loan type MSHDA Conventional 80%. Maximum funding is $10,000,000. For more information on MSHDA's Cities of Promise Loan Fund for Recent College Graduates, call 313.456.3560 or visit MSHDA’s website at http://www.michigan.gov/documents/mshda/mshda_college_grad_program_product_specs_175129_7.pdf .

MSHDA Down Payment Assistance Program

The Michigan State Housing Development Authority is offering a Down Payment Assistance Program to low-to-moderate income homebuyers. The program offers a zero-interest, non-amortizing loan with no monthly payments. The maximum assistance is $7,500, a sales price no greater than $224,500, and household income limits depending on location and family size. Funds may be used for down payment, closing costs, prepaid/escrow expenses and a home inspection performed by a qualified home inspector. As part of the program, the homebuyer must complete a homebuyer education class and at minimum contribute one percent of the sales price. The program is available with MSHDA's FHA or Rural Development first mortgage. For more information, call 313.456.3540 or visit MSDHA’s Down Payment Assistance Program site at http://www.michigan.gov/mshda/0%2C1607%2C7-141-45866_45870-175332--%2C00.html.

MSHDA Property Improvement Program

The program offers low interest home improvement loans for eligible homeowners and landlords. For homeowners, the Property Improvement Program offers low-interest home improvement loans to single-family Michigan homeowners with annual household incomes up to $65,000 ($74,750 in certain areas). Eligible home improvements include roof repair or replacement; insulation, siding, window replacement, and other improvements that increase the energy efficiency of the property; central air conditioning and furnace replacement; kitchen and bathroom remodeling; permanently installed carpeting (wall-to-wall) and built-in kitchen appliances (must be permanently affixed as an integral part of the kitchen, hard-wired or plumbed). Additional improvements can involve: ramp installation; attic and basement finishing; upgrading electrical wiring; building an addition; walkway and driveway installation; lead paint hazard remediation; garage repair and construction (not to exceed 800 square feet in area), and carports are also allowed. Decks and gazebos that are NOT for hot tub use or around a swimming pool; fences (chain link, brick, wood, iron); fireplaces (indoor); pole barns and utility buildings on a permanent masonry/concrete foundation are also eligible. Fire suppression sprinkler system (indoor); solar water heating systems; solar room sunspace/solarium (permanently installed for use as a sunroom, family room), and windmills for purposes of furnishing power to residential structures can be added. Loan amounts, terms, and interest rates vary. For landlords units up to 11 are eligible and the gross rent on each unit cannot exceed MSHDA's rental limit for their community for the life of the loan. For more information on MSHDA's Property Improvement Program, go to http://www.michigan.gov/mshda/0,1607,7-141-49317_50740---,00.html or call 313.456.3540.

MSHDA Supportive Housing Exemption

Certified eligible supportive housing property is exempt from the tax levied by a local school district for school operating purposes. Those interested in applying for a supportive housing exemption must be non-profit, scattered-site, single-family supportive housing property and must first obtain certification as a supportive housing project from the Michigan State Housing Development Authority (MSHDA). The MSHDA certification and Supportive Housing Exemption Affidavit must be presented to the local assessor in the municipality in which the supportive housing property is located. For more information on MSHDA's Supportive Housing Exemption, call 517.241.8471 or visit http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-231661--,00.html.

Neighborhood Enterprise Zone (NEZ)

The NEZ program was established by Public Act 147 of 1992, as amended. The program provides a tax incentive for the development and rehabilitation of residential housing and to spur the development and rehabilitation of residential housing in communities where it may not
otherwise occur. A NEZ also promotes neighborhood revitalization, encourages owner occupied housing and new investment by lowering property taxe A qualified local unit of government may designate one or more areas as a NEZ within that local unit of government. The program was established to spur the development and rehabilitation of residential housing in communities where it may not otherwise occur. The program also encourages owner-occupied housing and new investment in communities.

The program provides for the development of new construction and rehabilitation of residential housing located within eligible distressed communities. New and rehabilitated facilities applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of new and rehabilitated facility certificates. Exemptions for new and rehabilitated facilities are not effective until approved by the State Tax Commission (STC). NEZ Homestead applications are filed, reviewed and approved by the local unit of government.

New, rehabilitation, and homestead facilities may receive a term of exemption up to 15 years. Currently, three NEZ's exist in the Midtown area in the following locations: NEZ bounded by Hendrie, Brush, Ferry and Woodward; NEZ roughly bounded by Ferry, I-75, alley south of Ferry and Brush; NEZ roughly bounded by Hancock, Cass, Selden and the Lodge Freeway. For more information, call the City of Detroit Planning Department at 313.224.6380 or visit http://www.michigan.gov/taxes/0,1607,7-238-43535_53197-213184--,00.html or contact the MEDC Customer Assistance Center at 517.373.9808.

National Homeownership Retention Program

U.S. Small Business Administration (SBA) Loan Programs

Disaster Loans

SBA provides low interest disaster loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a declared disaster. For more information on these loans, visit: http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/disaster-loans or call the Michigan SBA office at 313.226.6075 or 1.800.659.2955 at main office in Washington DC or email [email protected].

Sustainable Development

Business Energy Investment Tax Credit (ITC)

The American Recovery and Reinvestment Act of 2009 allows taxpayers eligible for the federal renewable electricity production tax credit (PTC) to take the federal business energy investment tax credit (ITC). Commercial, industrial, utility, and agricultural businesses are eligible. Eligible renewable technologies include solar water heat, solar space heat, solar thermal electric, solar thermal process heat, photovoltaics, wind, biomass, geothermal electric, fuel cells, geothermal heat pumps, combined heat and power (CHP), solar hybrid lighting, fuel cells using renewable fuels, microturbines, and geothermal direct-use. Tax credits available are 30% for solar, fuel cells and small wind; and 10% for geothermal, microturbines and CHP. Maximum incentives are fuel cells: $1,500 per 0.5 kW, microturbines: $200 per kW, small wind turbines placed in service 10/4/08 - 12/31/08: $4,000, small wind turbines placed in service after 1/1/09: no limit, and all other eligible technologies: no limit. In general, credits are available for eligible systems placed in service on or before December 31, 2016. The energy property must be operational in the year in which the credit is first taken. For more information on Business Energy Investment Tax Credit (ITC), contact the IRS at 1.800.829.1040 or visit Energy.gov at http://energy.gov/savings/business-energy-investment-tax-credit-itc.

Detroit Economic Growth Corporation (DEGC)

Detroit Economic Growth Corporation is a non-profit organization that works closely with the City of Detroit and other partners to support existing businesses and to bring new companies and investments to the city. The DEGC also acts as staff for a number of public authorities whose board members are appointed by the Mayor and approved by Detroit City Council. Each of those entities has distinct responsibilities and powers, but they are very closely related. By using a common staff – DEGC – the work of these public authorities is well coordinated and avoids duplication. DEGC also works directly for the City of Detroit under contract and manages economic development efforts funded by private and foundation contributions, grants and contracts. For more information, visit http://www.degc.org or call 313.963.2940.

The Green Grocer Project (GGP)

Renewable Energy Detroit Initiative (REDI)

SmartBuildings Detroit Grant Program and Green Fund Loan

Building Enclosures Insulation and weatherization, glass replacement.

Building Systems Interior and exterior lighting and electrical, HVAC, low flow water/plumbing.

Alternative Energy Generation Solar panels, geothermal, wind, & water systems.

Two forms of assistance are available: loans and grants. They may be used separately or together.

For more information, visit www.degc.org, or contact the SmartBuildings Detroit Program at 313.963.2940.

Detroit Renaissance Zones (RZ)

The Renaissance Zone program is a collaborative effort between the City of Detroit, the County of Wayne, and the State of Michigan to give tax incentives to residents and businesses. The City of Detroit has designated sixteen areas as Renaissance Zones. This program works to encourage economic stability and development within the eight designated areas of the City. The resident or business must be physically located within one of the sixteen sub-zones and must be qualified.

These tax incentives include a waiver of city income and utility users' taxes, most city property taxes, county property taxes, and state income tax or single business tax - companies/residents are not exempt from paying Michigan sales and use tax. The program applies to participants who live, own property or businesses that conduct business within the area and are not delinquent in any local, county, or state taxes. There are also industry specific zones for firms doing business in agricultural processing, renewable energy, forest products processing, and tool and die industries.

Since this program involves the exemption of tax and applies to businesses and residents alike, it is crucial for participants to apply and qualify, through the Renaissance Zone Processing Center, for these tax benefits. Once qualified, the resident, business, or property owner will enjoy the exemption throughout the duration of the program without reapplying. However, if the resident, business, or property owner changes his/her status in any way, they must notify the Renaissance Zone Processing Center.

For more information on Detroit Renaissance Zones (RZ), visit http://www.detroitmi.gov/Departments/RenaissanceZones/tabid/146/Default.aspx for the latest updates on program status, eligibility, and current zone availability. For Michigan information, visit http://www.michiganadvantage.org/Renaissance-Zones or call 1.888.522.0103 or contact MEDC Customer Assistance Center at 517.373.9808.

DTE Energy

Custom Incentives for Businesses

Businesses that are not eligible for Prescriptive Incentives can save energy and money with DTE Energy’s customized incentives for energy-efficient projects. To be eligible, custom measures must reduce net electric and/or gas energy consumption by improving system efficiency. Projects that save energy by reducing service levels do not qualify. Custom incentives are paid based on the project’s first year energy savings. Examples of custom measures include: exhaust heat recovery, constant volume to variable volume water or air distribution, process improvements, upgrade of a refrigeration compressor, and air compressor improvements.

Projects that are not eligible for an incentive include fuel switching (e.g. electric to gas or gas to electric), changes in operational and/or maintenance practices or simple control modifications not involving capital costs, on-site electricity generation, projects that involve peak-shifting (and not kWh savings), and projects involving renewable energy. This program is not available to DTE Energy customers in multifamily buildings or complexes consisting of five or more units per building.

Custom incentives are paid at $0.08/kWh or $4.00/MCF of the first year energy savings. The payback period has to be between one and eight years and the total calculated incentives cannot exceed 50 percent of the measure cost. For more information on the Custom Incentives for Business program, visit http://www.dteenergy.com/businessCustomers/saveEnergy/rebates/custom2012.html or contact DTE Energy’s Your Energy Savings Program at 1.866.796.0512 or by e-mail at [email protected]

Multifamily Dwelling Program

Owners or managers of a multifamily building with 5 or more units can contact us about energy-efficient upgrades to both tenant and common areas. You can lower your energy bills and protect the environment by taking advantage of energy-efficient upgrades at a fraction of the investment cost. DTE Energy is offering substantial co-pays to assist you with making improvements in the common areas of your multifamily building. The amount of the co-pay will be based on the operating hours, existing and proposed equipment. Common area upgrades include:

> Energy Efficient Lighting

High Performance T5 and T8 lighting retrofits
Hard wired CFL Fixtures
LED Exit Signs
Lighting controls and sensors
Parking lot and safety lighting

> Energy Efficient Gas upgrades

Pipe wrap insulation
Boiler tune up
Steam trap repair/replacement
Boiler controls

In-Unit Improvements*

With the in-unit incentives program, residents of your multifamily building can benefit from installation of energy-efficient natural gas and electric upgrades that save energy and water. Energy efficiency improvements include the following measures:

ENERGY STAR^® compact fluorescent light bulbs (CFLs), which use up to 75% less energy than incandescent
Low-flow showerheads
Kitchen and bathroom faucet aerators
Pipe wrap insulation

How to participate: The Multifamily Dwelling program is available to DTE Energy customers in multifamily buildings or complexes consisting of five or more units per building.

*Participation is on a limited, first come-first serve basis. Measure eligibility depends on customer type and existing equipment. A qualifying, walk through energy audit must be completed prior to any installations. Get started today by calling 866.796.0512 (toll free) or 313.297.4110.

Whole Building Design Incentives

2012 New Construction and Major Renovation Incentives

If a customer is building a new facility, changing usage of the space or adding load, new construction and major renovation incentives are available to assist them with off-setting the cost of energy efficient upgrades allowing them to save operating costs long-term. There are two categories of new construction incentives. Whole building incentives are based on three tiers of efficiency and require energy modeling. There are also system approach incentives that are predetermined to optimize the energy efficiency of individual systems.

Whole Building Design Incentive Levels:

Tier 1: 10-20% above baseline building energy codes

Incentives of $.08 per kWh and $4.00 per MCF

Tier 2: 21-30% above baseline building energy codes

Incentives of $.10 per kWh and $6.00 MCF

Tier 3: >30% above baseline building energy codes

Incentives of $.12 per kWh and $8.00 per MCF

Systems Incentives: Vary with system but include lighting, HVAC, process electric and food service.

How to Apply: To determine if your project qualifies, please contact DTE Energy’s Your Energy Savings team before you start your design at 866.796.0512.

Download the New Construction Application* for details on the program and application forms. Full details of the program can be found in the Policies and Procedures Manual*.

Prescriptive Incentives for Your Business

Incentives are available for an array of energy-saving technologies, both electric and gas including energy-efficient lighting, motors and drives, controls, heating ventilation and air conditioning, refrigeration and more. If you have an energy-saving project that does not fall under this prescriptive incentive program, you may qualify for the Custom Incentive Program. This program is not available to DTE Energy customers in multifamily buildings or complexes consisting of five or more units per building. See the Multifamily Dwelling Program to learn about energy-saving upgrades to both tenant and common areas.

To participate in Prescriptive Incentives, view the list of eligible electric measures on page 7 of the DTE Energy’s Your Energy Savings Program Application found at http://www.dte-yourenergysavings.com/ProjectCenter/Portals/69/2012_DTE_Project_App.pdf. For more information on the program and how to apply, visit http://www.dteenergy.com/businessCustomers/saveEnergy/rebates/prescriptive2012.html or contact DTE Energy’s Your Energy Savings Program at 1.866.796.0512 or by e-mail at [email protected]

Energy-Efficient Commercial Buildings Tax Deduction

The Federal Energy Policy Act of 2005 established a tax deduction for energy-efficient commercial buildings applicable to qualifying systems and buildings placed in service from January 1, 2006, through December 31, 2013. The deduction is limited to $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems. Deductions are available primarily to building owners, although tenants may be eligible if they make construction expenditures. For more information on the Energy-Efficient Commercial Buildings Tax Deduction program, visit http://www.efficientbuildings.org or http://www.energystar.gov/index.cfm?c=tax_credits.tx_comm_buildings or call the IRS at 1.800.829.040.

Michigan Saves

Business Energy Financing (Statewide)

The Michigan Saves Business Energy Financing program is available for capital leases of $2,000 to $150,000 with terms of 2-5 years to finance energy efficiency equipment and renovations. The standard rate for a $150,000 transaction with five-year term is 5.9% (fixed rate). A promotional rate of 3.99% is currently available for the food industry. Ervin Leasing, Michigan Saves Michigan-based lender, is offering the affordable, streamlined financing.

As an enhancement to this standard offering in certain locations including Detroit, Michigan Saves has been working with several foundations on a program-related investment (PRI) that would use foundation capital instead of Ervin's other capital source (community bank). The PRI would lower the overall interest rate to the borrower without having to fund expensive buy downs, and is therefore more sustainable. The Michigan Saves subsidiary, Fund for Energy Efficiency LLC, would handle the foundation capital. The foundation(s) would obtain a return on investment and Michigan Saves and Ervin would provide loss coverage. Whether you are a business interested in financing or a contractor, contact Michigan Saves and they will walk you through the process. For more information, visit http://www.michigansaves.org or contact Todd O'Grady Michigan Saves Program Coordinator at 734.494.2126 or write to [email protected].

Commercial Contractor Enrollment Business Energy Financing (Statewide)

Enrollment for energy auditors and installation contractors for Michigan Saves Business Energy Financing is now open statewide. Whether you are an equipment dealer or handle comprehensive renovations, Michigan Saves and its financing partner, Ervin Leasing, can help you close the deal with clients with our below-market rates and extended terms for energy efficiency improvements. Business Energy Financing serves all types of businesses with special marketing and incentives for the food industry. Contractor applications are accepted on a rolling basis. For application, Commercial Contractor Enrollment Business Energy Financing instructions and other details for contractors visit http://www.michigansaves.org/Partners/Contractors.aspx or call 517.484.6474.

Home Energy Loan Program

The Home Energy Loan Program makes saving energy at home easy, affordable, and smart. A Michigan Saves authorized contractor will help you choose the right projects to make your home more comfortable and more energy efficient, and will walk you through the financing process. Michigan Saves: Easy As 1-2-3:

Find a Michigan Saves authorized contractor to get an estimate on qualifying energy improvements. Have an energy assessment or pick from the Michigan Saves Eligible Measures List.
Complete the loan application and get a decision within minutes. Your contractor will initiate this process.
Once the loan is approved, your contractor makes the energy improvements. Your contractor is paid after the work is done to your satisfaction.

The loan type is unsecured, personal loan. Eligible improvements are energy-saving improvements pre-qualified by Michigan Saves or those recommended by a whole-home energy assessment. Loan amounts range from $1,000–$20,000. Loan terms of $1000 - $4,999 are 1 year for every $1,000 and loan terms for $5,000 and up have flexible terms of up to 10 years (e.g., sample monthly payment for 7-year, $6,000 loan at 7% APR is $90.56). Loan rates are a fixed APR not to exceed 7%. Eligible properties are owner-occupied, single-family (1–4 unit) homes (primary or secondary residence). Maximum loan amount is $15,000 for some lenders. Ask a Michigan Saves participating lender for details. For more Home Energy Loan Program information, call 734.494.2190 or visit http://www.michigansaves.org/Customers/HomeEnergyLoanProgram/AuthorizedContractors.aspx.

Better Buildings for Michigan

Michigan Saves is part of a team implementing Better Buildings for Michigan, a federally funded program to perform intensive energy efficiency drives in specific neighborhoods around the state. BetterBuildings for Michigan provides incentives, financing, and targeted outreach to improve the energy efficiency of homes in a total of 27 neighborhoods located in Grand Rapids, Detroit, the southeast Michigan suburbs, and other communities around the state. This program offers a combination of rebates and financing and will target 11,340 homes in addition to 131 commercial and institutional buildings. The Michigan Saves Home Energy Loan Program is a key feature of the package of services being offered to homeowners through this initiative.

For more information on Better Buildings for Michigan, contact Sue McAlpine, Program Director at 313.566.4801 x710 or write to [email protected] at the Southeast Michigan Regional Energy Office or visit http://www.betterbuildingsformichigan.org.

Nonrefundable Business Activity Tax Credit

Businesses engaged in alternative energy research, development, and manufacturing may claim a nonrefundable credit from the Michigan business tax. In order to be eligible for this tax credit, the Michigan Next Energy Authority must certify the taxpayer and its qualified business activity. Eligible Renewable/Other Technologies include solar water heat, solar space heat, solar thermal electric, solar thermal process heat, photovoltaics, wind, biomass, fuel cells, combined heat and power (CHP), miniturbines, Stirling engines, hybrid vehicles, batteries, storage, thermoelectric energy, solar pool heating, renewable fuels, fuel cells using renewable fuels, and microturbines. For more information on Nonrefundable Business Activity Tax Credit, contact the Michigan Economic Development Corporation at 1.888.522.0103 or visit http://www.michiganadvantage.org/.

Renewable Energy Renaissance Zones (RERZ)

To assist in the development of a strong renewable energy industry in Michigan, RERZ were created to promote renewable energy operations in the state. These RERZs differ from Michigan's original renaissance zones because they require them to contain a company's renewable energy facility and can be located anywhere in Michigan. Facilities within a renaissance zone do not pay the Michigan Business Tax*, state education tax, personal and real property taxes, or local income taxes where applicable. These taxes may be abated for up to 15 years, with the abatements being phased out in 25% increments over the last three years of the zone designation. Taxes still due are those mandated by the federal government, local bond obligations, school sinking fund or special assessments. Companies are not exempt from paying Michigan sales and use tax. Renewable energy facilities located in RERZs must be current with all state and local taxes in order to be eligible for benefits under the program. To receive recommendation from the
Michigan Strategic Fund Board (MSF), applicants must demonstrate the positive economic impact the project will have on the local unit of government and on the state. For more information, visit http://www.michiganadvantage.org/cm/Files/Fact-Sheets/RenewableEnergyRen.... For general information on RERZ, call the MEDC Customer Assistance Center at 517.373.9808..

*The Michigan Business Tax (MBT) was repealed in 2011 and replaced by the Corporate Income Tax (CIT). Credits awarded under the MBT can be retained for the duration of the agreements. Businesses receiving certain credits, including Renaissance Zone credits, may choose to either continue to file under the MBT to continue claiming their credits, or file under the CIT. No additional Renaissance Zone credits will be awarded after 2011.

Residential Energy Conservation Subsidy Exclusion (Corporate)

According to Section 136 of the U.S. Code, energy conservation subsidies provided to customers by public utilities, directly or indirectly, are non-taxable. The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated.

Utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. The federal exemption is available for residential and multi-family residential properties with eligible renewable technologies that include solar water heat, solar space heat, and photovoltaics. For more information on Residential Energy Conservation Subsidy Exclusion (Corporate), call the IRS at 1.800.829.1040 or visit http://www.irs.gov/publications/p525/index.html.

State of Michigan

Energy Efficiency Grants

The Michigan Public Service Commission (MPSC) Energy Efficiency Grant program, funded by the State's Low-Income and Energy Efficiency Fund, supports the implementation of energy efficiency projects and renewable energy projects in the state. The MPSC issues periodic RFPs in three categories: (1) energy efficiency for low-income clients, (2) energy financial assistance to low-income clients, and (3) energy efficiency for all customers. In addition to energy efficiency projects that reduce energy demand, previous grants have supported renewable energy project for solar, wind, anaerobic digesters, fuel cells and biofuel application.

Eligibility for these programs are dependent on the specifics of individual Request for Proposal (RFP), businesses, non-profit organizations, government agencies and/or schools are eligible to apply. The MPSC has emphasized that this program does not provide any direct funding to homeowners or renters. Interested applicants should review currently available requests for proposals to ensure they qualify before contacting the MPSC for additional information.

Recent RFP solicitations have addressed subjects such as the creation of an energy efficiency and renewable energy financing system; renewable energy investments and energy efficiency upgrades by non-profits, schools, and public agencies; offshore wind feasibility studies and testing; and market advancement of smart-grid energy storage technologies. Detailed RFP information on current and past solicitations is available on the MPSC Energy Efficiency Grant website. Contact Wanda Jones at 517.241.6130 or visit http://www.michigan.gov/lieefund for more information on potential future grant funding for energy efficiency and renewable energy projects. Each RFP also contains contact information for that particular solicitation.

Small Business P2 Loans

The Small Business P2 Loan Program (P2 Loan Program) provides loans of up to $400,000 at an interest rate of 5% or less to existing independently owned businesses with 500 or fewer full time employees. Projects that qualify for P2 loan funding include those that eliminate or reduce waste at the business location (source reduction), result in environmentally sound reuse and recycling for the loan applicant's generated wastes, conserve energy or water on-site, or are a qualified agricultural energy production system. Funding for the P2 Loan Program comes from a revolving loan fund, made possible through passage of the Clean Michigan Initiative in November of 1998. Low interest loans are available to all Michigan businesses including manufacturing, farming, retail and service. For more information, call 1.800.662.9278 or visit http://www.michigan.gov/p2loan.

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Incentive Programs

Listed below are incentive programs grouped in seven categories involving:

Business Development

Brownfield Development

Commercial Real Estate

Economic Development

Historic Preservation

Housing Development

Sustainable Development

Business Development

Business Accelerator Network for Southeast Michigan

Accelerate Michigan Innovation Competition

Detroit Economic Growth Corporation (DEGC)

Creative Corridor Investment Fund (CCIF)

Detroit Business to Business - D2D

The Green Grocer Project (GGP)

Manufacturing Diversification

Renewable Energy Detroit Initiative (REDI)

REVOLVE Detroit

SmartBuildings Detroit Grant Program and Green Fund Loan

Detroit Development Fund (DDF)

Detroit Development Loan Programs

“Late Stage” Pre-Development Loans:

Small Business Loan Program

Pre-Construction Loan Program

Contractor Lines of Credit Loan Program

Michigan Saves Commercial Loan Program

Detroit Micro-Enterprise Fund (DM-EF)

The Detroit Food Movers Fund

The Dm-ef Core Loan Fund

The Green Enterprise Fund

The Wayne County Urban Loan Fund

The Women's Empowerment Fund

Family Tree Loans

Hatch Detroit

Hebrew Free Loan Business Initiative Stimulus

Goldman Sachs 10,000 Small Businesses Mini MBA Program

Invest Detroit

Business & Equipment Loans

Detroit Tecchnology Exchange

Emerging Business Loans

First Step Fund

Invest Detroit Foundation (IDF)

Urban Retail Loan Fund (URLF)

Neighborhood Retail Loans

InvestMichigan! Fund

Kickstarter

Kiva Detroit

Local Initiatives Support Corporation (LISC)/Morgan Stanley Small Business Loan Fund

Michigan 21st Century Investment Fund

Michigan Certified Development Corporation (MCDC)

Michigan Advantage - Michigan Economic Development Corporation (MEDC)

2013 Business Incubator Program

Border County Incentives PA 198 and PA 328

Community Development Block Grant Business Development Initiatives

Michigan Business Development Program (MBDP)

Michigan Corporate Income Tax (CIT)

Impact on Existing Tax Credits Recipients

Michigan Emerging Technologies Fund (ETF)

Michigan Manufacturing Technology Center (MMTC)

Michigan NextEnergy Authority (MNEA)

Pure Michigan Venture Match Fund (PMVM)

Small Business Credit Initaitive

Capital Access Program

Michigan Business Growth Fund - Collateral Support Program (MBGF-CSP)

Michigan Business Growth Fund Loan Participation Program (MBGF-LPP)

SmartZones and Business Incubators

Michigan Pre-Seed Capital Fund

Venture Capital Events/Seminars

The Center for Venture Capital and Private Equity Finance

The Great Lakes Entrepreneur's Quest (GLEQ)

Michigan Small Business and Technology Development Center (MI-SBTDC)

Michigan Women's Foundation

BELLE Capital LP

Angel Loan Fund

Midtown Detroit, Inc. Facade Improvement Matching Grant and Security Matching Grant Program

NextEnergy

Opportunity Resource Fund

Micro-enterprise/Small Business