Saturday, June 02, 2012

Michigan getting creative to find financing options for businesses

Michigan getting creative to find financing options for businesses | MLive.com
One program will provide microloans to small business owners looking to get started and grow.
It’s a partnership with Michigan Corps, a nonprofit that leads social change efforts, and Kiva.org, a crowd funding source that pools small (as little as $25) contributions from individual lenders (everyday citizens) in order to make microloans of a few hundred to a few thousand dollars.
“It’s a great opportunity for folks who are looking for very small loans to get access to capital,” said Michael Finney, MEDC president and CEO....

The MEDC is working with banks and other financial institutions to raise $125 million to $200 million in capital to invest in redevelopment projects. The MEDC will chip in $20 million, representing 10 to 15 percent of the total pool.
“In many cases we find that the collateral is insufficient or the deal doesn’t cash flow properly so those projects weren’t getting the financing needed,” Finney said.

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