The U.S. Department of the Treasury has announced a $9 million award to the Michigan Economic Development Corporation. This funding is aimed at supporting small business growth through the Biden-Harris Administration’s State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP).
This initiative, part of the administration's broader economic agenda, is designed to provide funding for underserved and very small businesses. The program aims to connect these businesses with capital needed for key supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, and clean energy generation. The SBOP also seeks to encourage private sector investment by supporting technical assistance services such as accounting and legal services.
U.S. Deputy Secretary of the Treasury Wally Adeyemo emphasized the administration's focus on American automakers and creating new opportunities for small businesses in Michigan: "With these new resources, Michigan will be able to support small automotive manufacturers and suppliers by providing them with the business and financial services they need to grow and participate in these supply chains."
National Economic Advisor Lael Brainard noted that small and mid-sized auto suppliers have long been local economic engines in Michigan: "Today’s announcement makes further progress on the Administration’s goal of supporting suppliers to ensure that the future of the auto industry is made in America by American workers."
Lt. Governor Garlin Gilchrist II highlighted the significance of this funding for Michigan's economy: "This $9 million award from the Biden-Harris Administration will connect small auto manufacturers with the resources they need to grow their businesses, create good-paying, high-skilled jobs, and bring supply chains home from overseas."
U.S. Senator Debbie Stabenow commented on how this investment would benefit small auto suppliers: "It will help create good-paying jobs and boost our economy."
Senator Gary Peters expressed his support for SSBCI: "This funding will directly help those businesses create and retain jobs, adapt their operations, and continue supporting their local economies."
Quentin L. Messer Jr., CEO of the Michigan Economic Development Corporation, praised this grant as an alignment with federal industry policy: "Michigan is home to an incredible skillset of workers up and down the automotive supply chain."
Michigan was chosen for this award through a competitive selection process. The $9 million SBOP award will launch the Michigan Auto Supplier Transition Program (MASTP), benefiting small businesses across all 83 counties in Michigan.
The program aims to assist underserved automotive manufacturers and aftermarket suppliers in securing financing and scaling their operations. It will also help internal combustion engine auto supply chain businesses transition into electric vehicle production or related industries.
Services under MASTP include general educational opportunities, business health assessments, coaching, subject matter expert advisory services, financial management skills development, acquisition support services, geographic coverage prioritization among others.
The initiative is supported by $500 thousand from the Make It in Michigan Competitiveness Fund which provides enabling funds like match grants for federally backed investments.
Selected SBOP jurisdictions are tasked with building or expanding technical assistance programs focused on connecting very small and underserved businesses with available financing options.
The American Rescue Plan Act reauthorized SSBCI providing nearly $10 billion to support small businesses across various states including territories like Tribal governments aiming at promoting entrepreneurship while democratizing access to capital especially within underserved communities.
In addition to today’s announcement about SSBCI Technical Assistance grants totaling $145 million allocated by formula covering 48 jurisdictions have been approved while more approvals are anticipated soon.
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