EAST LANSING — As part of their Do Good Things for Michigan campaign, the Michigan Certified Development Corporation (MCDC) has announced a new loan program to subsidize due diligence and certain closing costs for loans made in Detroit, Hamtramck, Highland Park, Pontiac, Flint, Saginaw and Benton Harbor.
“These cities represent some of the hardest hit cities during the economic downturn, both in Michigan and nationwide,” said Jane K. Sherzer, President of MCDC. “During these challenging times, SBA Loan Programs serve as a counterbalance to tight credit markets which is a reality in these cities facing tough times.”
According to Sherzer, the plan is to subsidize up to 1 percent of the loan amount not to exceed $5,000. This can be used for outside due diligence, such as appraisals and environmental cleanup and certain closing costs such as property surveys and title insurance as an example.
Sherzer emphasized that strong loan programs aimed at boosting the economic base of struggling cities are critical for their economic recovery; emphasizing that MCDC and SBA will work together to make these loans available.
“When financial institutions and businesses partner with MCDC – together we Do Good Things for Michigan,” explained Sherzer. “Jobs are created and retained as a result of the SBA Loan Program. In turn the surrounding communities benefit because businesses grow, jobs are saved – people stay in the community, spend money, buy homes and send their kids to local schools.”
MCDC has scheduled news conferences to further explain how the program will work. The schedule is as follows:
Nov. 27 – 9:30 am at Tango Down
Nov. 27 – 1:30 pm at Halo Burgers
Nov. 28 – 9 am at Michigan Works