WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) announced that the Michigan Economic Development Corporation is being awarded $9 million to support small business growth through the Biden-Harris Administration’s State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP).
Part of the Biden-Harris Administration’s economic agenda, this $75 million program provides funding to connect underserved and very small businesses to the capital needed to participate in key Investing in America supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, clean energy generation, and more. The SBOP was designed to catalyze additional private sector investment by supporting small business technical assistance services like accounting and legal services.
“The Biden-Haris Administration’s economic agenda is focused on supporting American automakers and creating new opportunities for small businesses in Michigan to be a part of the supply chain for American-made cars,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “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. Continuing the Biden-Harris Administration’s historic small business boom is one of our top priorities, and this funding will advance that goal in a key, growing sector of our economy.”
“Small and mid-sized auto suppliers have served as local economic engines for generations – particularly in historic auto communities in Michigan,” said National Economic Advisor Lael Brainard. “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.”
“Small businesses are the backbone of Michigan’s economy and critical to building a brighter future for our residents,” said Lt. Governor Garlin Gilchrist II. “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. Governor Whitmer and I will keep working alongside the Biden-Harris Administration to grow our economy and make Michigan the best place to start and grow a business.”
“This important investment will help ensure that our small auto suppliers can grow their businesses and continue to play a strong role in our domestic supply chain and the transition to electric vehicles.” said U.S. Senator Debbie Stabenow. “It will help create good-paying jobs and boost our economy.”
“As Michigan automakers continue building the vehicles of the future, it’s critical that the thousands of suppliers and small businesses across our state who support the industry also have the resources they need to be successful,” said U.S. Senator Gary Peters. “This funding will directly help those businesses create and retain jobs, adapt their operations, and continue supporting their local economies. I helped champion the State Small Business Credit Initiative in 2010 and again helped expand the program through the American Rescue Plan because it is a proven success, and I’m pleased it’s continuing to bolster the small business community here in Michigan.”
“Team Michigan is grateful to receive this grant from the Biden-Harris administration as further proof that our ‘Make It In Michigan’ economic strategy focused on our people, places, and projects of all sizes is aligned with bipartisan federal industry policy,” said Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation. “Michigan is home to an incredible skillset of workers up and down the automotive supply chain, and this funding will enhance that standing by affording Michiganders the opportunity to thrive in the industry that our state built. While work remains and we are committed to doing that work, I look forward to seeing the innovation and expansion that will come from these investments.”
Michigan was selected for the SBOP award through a competitive selection process. The $9.1 million SBOP award will launch the Michigan Auto Supplier Transition Program (MASTP), with services across the state to benefit small businesses in all 83 counties. The program will focus on helping small and underserved automotive manufacturers and aftermarket suppliers secure financing and scale their operations, and will help businesses in the internal combustion engine auto supply chain transition into serving electric vehicle production or an adjacent industry.
These services will be provided through general educational opportunities and in-depth business health assessments, coaching, and subject matter expert advisory. MASTP will also enable the Michigan Strategic Fund to contract with technical assistance providers to offer financial, legal, and accounting services to very small businesses (VSBs) and underserved businesses, prioritizing capital readiness, acquisition support, financial management skills, and geographic coverage.
The Michigan Strategic Fund, with support from the Michigan Economic Development Corporation and the Michigan Department of Labor and Economic Opportunity, led the effort to create MASTP alongside key partners including the Michigan Minority Supplier Development Council, the University of Michigan Economic Growth Institute, Automation Alley, the Michigan Manufacturing Technology Center, and the Michigan Manufacturers Association. This initiative is supported by $500,000 from the Make It in Michigan Competitiveness Fund, which provides enabling funds, such as match grants, to unlock federally backed investments that will boost the state economy, create good-paying jobs, bring new life to communities, and improve infrastructure while increasing quality of life for Michiganders.
Selected SBOP jurisdictions will build or expand technical assistance programs focused on connecting very small and underserved businesses to financing available through SSBCI, or other state or federal small business programs, including in the infrastructure, manufacturing, clean energy, or climate resiliency space. Jurisdictions have been selected based on their plans to create innovative, high-impact models of small business technical assistance delivery that demonstrate a vision to improve access to capital for historically overlooked businesses across the nation.
The American Rescue Plan Act reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 280 Tribal governments.
In addition to today’s announcement, Treasury has announced the approvals of SSBCI Technical Assistance grants allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing $145 million for 48 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of approved programs here.
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