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Michigan

These resources – like the public health crisis itself – are constantly evolving and are only current as to the date of publication. This page was last updated on June 22, 2020.

For more up-to-date information on the relief programs available in Michigan, we recommend that you visit the state’s COVID-19 Resources website or the Michigan Economic Development Corporation

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Description of Program and Relief

Capital Access Support Financing for Businesses Impacted by COVID-19

Description of Program and Relief

The Michigan Economic Development Corporation (MEDC) offers existing programs to assist small and medium-sized businesses across Michigan negatively impacted by the COVID-19 outbreak with debt capital needs. Available programs include:

  • Capital Access Program: The Capital Access Program (CAP), is available to assist businesses with capital needs. Similar to a loan loss reserve fund, the bank, the company and the Michigan Strategic Fund pay a small premium into a reserve that makes it possible for the company to receive fixed asset and working capital financing.

    • Collateral Support Program: The Collateral Support Program works to provide cash collateral accounts to lending institutions to enhance the collateral coverage of borrowers. This program seeks to enable borrowers to acquire the necessary financing that may otherwise be unavailable due to a collateral shortfall.

      • Loan Participation Program: The MEDC can participate with a lender for new financing that decreases the lender’s credit exposure. For projects with speculative cash flows, the MEDC may offer a grace period on repayments.

      Government or Lead Agency

      Michigan Economic Development Corporation

      Dates Available

      Ongoing

      Eligibility Requirements/Restrictions

      Eligibility varies by program.

      CAP loans are available to most businesses located and legally authorized to do business in Michigan that satisfy the relevant bank’s criteria. Eligible businesses must have no more than 500 employees and must be for profit institutions. For additional eligibility information, please visit this webpage.

      To qualify for the Collateral Support Program, a business must be engaged 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. Eligible businesses must have no more than 750 employees, participation in a qualified industry (e.g., mining, manufacturing, research and development wholesale and trade, film and digital media productions, office operations, or generally businesses that deal with most technological products and services) and otherwise comply with all state and federal requirements for the program. For additional eligibility information, please visit this webpage.

      To qualify for the Loan Participation Program, a business must be engaged with a private lender for the purpose of acquiring a commercial extension of commercial credit for a diversification or expansion project. Eligible businesses must have no more than 750 employees and otherwise comply with all state and federal requirements for the program. For additional eligibility information, please visit this webpage.

      Application Deadlines (If Applicable)

      N/A

      Contact for More Information

      For the MDEC, please contact 888-522-0103.

      For further information, please contact the MDEC customer contact center 517-373-9808 or CAP@michigan.org.

      List of Additional Information

      For additional information, please visit this webpage.


© 2020 Paul, Weiss, Rifkind, Wharton & Garrison LLP. This does not constitute legal advice and does not create an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. Past representations are no guarantee of future outcomes.

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