Finding A Business Loan In Michigan: A Guide To Loan Sources In Michigan

Michigan offers a great business environment to small businesses. One of the biggest factors working in favor of Michigan’s small businesses is the multitude of business loan options available. Even when the federal government has no specific loan programs, the Michigan state government provides business loans to small businesses on easy terms. This article lists some of the business loans available in Michigan

1) Small Business P2 Loan Program

The Small Business P2 Loan Program grants loans for a maximum amount of $400,000. The interest rate is 5% and the loan is granted to businesses that are environmentally responsible, take care to reduce waste and consciously adopt recycling and conservation policies. If your small business deals in the farming, retail or service sectors in Michigan, then this is an ideal loan option.

2) SBA 504 Loans

SBA 504 Program takes care of small business businesses with long-term finance options. These loans are provided for buying real estate or investing in immovable assets. Private lenders tender half the loan amount, while the Small Business Administration takes care of the remaining 50% of the loan amount. The down payment is low, and the terms are fixed rate and long term.

3) Charter One Loan Program

Developed by the Michigan government in partnership with the Charter One Bank, the Charter One Loan Program aims to increase employment in the country through loans totaling $200 million. The business loans offered by Charter One can be used for buying real estate, equipment and for renovations. The businesses eligible for this loan must be dealing in areas related to manufacturing, innovation, alternative energy sources, automobiles, materials, logistics etc.

4) Small Business Investment Company Program

The SBA looks after SBICs. These are privately owned investment companies that offer funds to small business. The SBICs are venture capitals that have received substantial help from the SBA, and in turn help small businesses expand through their venture capital programs.

5) Microloans

Microloans make you eligible to apply for very small amounts, ranging from $100 to $ 25,000. The loans are disbursed through non-profit organizations, and your application is approved in a week’s time.

6) Certified Development Companies (CDC)

Another source of funds for small businesses in Michigan is CDCs that offer long term and fixed rate loans for investing in immovable assets. Each specified region has a dedicated CDC to look after the growth of small business in its area. If you are looking for a small business loan in Michigan, contacting your local CDC office is a good idea.

With so many loan programs for small businesses already operational, and many in the pipeline, it is no wonder that Michigan has started attracting small businesses, entrepreneurs and venture capitalists. If you need to know more about business loans in Michigan, get in touch with a small business consultant who can help you locate some of the best sources of loans in Michigan.