In its first year of operation, Grow Michigan approved a dozen loans totaling $20.1 million in an effort to accelerate growth and capital investment in small businesses.
The initiative, with offices in Ann Arbor and Plymouth, invested in businesses that employ more than 1,000 Michigan workers, with growth commitments of an additional 250 jobs across nine Michigan counties.
Six of the investments were made in Wayne and Macomb counties to companies including Northern Lakes Seafood & Meats, a Hamtramck-based wholesale supplier of fresh and frozen seafood and meats, and Hamilton Engineering, a Livonia-based manufacturer and supplier of hot water heating and boiler systems.
“Reasonably priced growth capital for Michigan’s small business community was much discussed, but not available,” says Russell Youngdahl Jr., CEO and co-founder of Grow Michigan. “We have been successful in proving that with the proper underwriting and partnerships, we can accelerate growth in Michigan by filling the capital needs for small business.”
With $35.7 million of capital from members of Michigan’s banking community and the Michigan Strategic Fund, Grow Michigan provides risk capital in the form of subordinated/mezzanine debt, which allows business to fund further growth. Grow Michigan mezzanine loans, made in conjunction with senior loans, range from $500,000 to $3 million in the form of 3-5 year subordinated debt.