Michigan Small Business Capital Access Program
Michigan's Capital Access Program, now funded through SSBCI 2.0, builds a loss reserve at each participating lender. On every enrolled loan the borrower and lender each pay a premium into the reserve and the Michigan Strategic Fund matches their combined payment, and the lender draws on the reserve to cover charge-offs. Lending decisions and loan terms stay with the lender.
- Last reviewed
Key terms
- Premiums
- Borrower and lender each pay 1.5% to 3.5% of the loan into the reserve, in equal amounts; the lender sets the premium and may recover its share from the borrower
- michiganbusiness.org
- State match
- MSF pays into the reserve an amount equal to the combined borrower and lender premiums, up to $150,000 per borrower or common enterprise in any 3-year period unless MEDC approves more
- michiganbusiness.org
- Claims
- After a charge-off, up to the enrolled principal plus up to 90 days of accrued interest, paid from the lender's reserve; no costs or fees
- michiganbusiness.org
- Loan structure
- Long or short term, term loans or lines of credit, as the lender decides; partial loan enrollment allowed
- michiganbusiness.org
Borrower eligibility
- For-profit businesses located and authorized to do business in Michigan with no more than 500 employees that meet the bank's criteria.michiganbusiness.org
- Can finance most types of business except construction or purchase of residential housing, a casino, stadium or arena, or passive real estate. Loans must be a new extension of credit and cannot finance the unguaranteed portion of an SBA-guaranteed loan.michiganbusiness.org
- No industry requirements apply.michiganbusiness.org
Lender requirements
What a lender must be or do to make these loans.
- The lender signs a master CAP agreement with the Michigan Strategic Fund.michiganbusiness.org
- To enroll a loan, the lender submits a Loan Enrollment Form and evidence of premium payment within 30 calendar days after making the loan; MEDC enrolls it or responds within 30 business days.michiganbusiness.org
- Claims are filed on the agreement's claim form after the lender charges off all or part of an enrolled loan, using its normal charge-off method; recoveries after a claim is paid go back into the reserve.michiganbusiness.org
- On request the lender reports the number and outstanding balance of enrolled loans as of December 31. MSF may withdraw up to half of reserve interest, and reserve amounts above total enrolled balances after 24 consecutive months.michiganbusiness.org
Underwriting requirements
What the credit file has to show.
- CAP loans are private transactions between the bank and the borrower; MEDC and MSF play no role in lending decisions or non-program loan terms, and the bank assumes the risk of the loan.michiganbusiness.org
Required documents
- SSBCI 2.0 Small Business Capital Access Program Agreement (template)Master agreement between MSF and the lender, including the Loan Enrollment Form and claim formOpen
Governing documents
The rules a file is held to, with the version in force.
- GuideCapital Access Program fact sheetVersion 03.05.2025michiganbusiness.org
- FormSSBCI 2.0 Small Business Capital Access Program Agreement (template)michiganbusiness.org
- Program pageMEDC Capital Access Program Information for Lendersmichiganbusiness.org
- GuideSSBCI Capital Program Policy GuidelinesVersion Revised October 4, 2024home.treasury.gov
- GuideSSBCI Frequently Asked QuestionsVersion Updated November 10, 2026home.treasury.gov
- Program pageSSBCI Capital Program Summaries (Michigan)home.treasury.gov
What changed
Published changes to this program, newest first.
- Guide
Treasury SSBCI FAQs add post-program rules for after March 11, 2028
Treasury's authority to run the SSBCI Capital Program ends on March 11, 2028. SSBCI funds disbursed to a state before then stay with the state. After that date the state may change, add or end its SSBCI programs without Treasury approval, and SSBCI rules generally stop applying to returned funds and program income.
What to do: No action is needed on loans already supported. Expect the state to be able to change or end this program after March 11, 2028 without Treasury approval, and check the administrator's terms before relying on the program for deals that close after that date.
- Program page
Michigan announces second round of SSBCI 2.0 funds
Governor Whitmer announced the second round of Michigan's SSBCI 2.0 funds, making $79,383,856 available for MEDC's small business capital programs. MEDC reported 636 loans totaling $72 million supported in the first round.
What to do: Funding for new MEDC credit support is available; lenders with eligible deals can send them to MEDC Capital Access at businessloans@michigan.org.
How to participate
Contact MEDC (cap@michigan.org or businessloans@michigan.org) and sign the SSBCI 2.0 CAP agreement with the Michigan Strategic Fund, which sets up the lender's reserve. After that, the lender makes CAP loans under its own credit standards and enrolls each one within 30 days by sending the Loan Enrollment Form and premium payment.
Last reviewed Nov 13, 2026. A summary of official sources, linked beside each fact, kept current by Kita each week. Program rules change: confirm against the current source before you rely on a figure. Not legal advice. Spotted something out of date? Email hello@kita.ai.
Run Michigan CAP on Kita.
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Tax returns, bank statements and financials, as PDFs, scans or photos.
Period over period, with debt service coverage computed from the spread.
Tests the file against Michigan CAP requirements and flags what is missing before it reaches review.
Every figure links to the page it came from, so it can be checked.