Michigan Business Growth Fund Collateral Support ProgramMichigan Business Growth Fund Collateral Support Program

Maximum support

Cash collateral of up to 49.9% of a new extension of commercial credit

michiganbusiness.org

Maximum MSF amount

Participation capped at $5,000,000; individual credit extensions over $20,000,000 are not eligible

michiganbusiness.org

Closing fee

1% to 2% of the MSF amount, charged to the lender

michiganbusiness.org

Annual fee

1% of the MSF balance, charged to the lender

michiganbusiness.org

Deposit on term loans

The deposit is drawn down as principal is repaid so support stays at the percentage set at closing

michiganbusiness.org

Deposit on lines of credit

Equal to the maximum possible collateral support, with no periodic withdrawals; the borrower may not draw on the deposit

michiganbusiness.org

Use on default

After liquidating the primary collateral and giving MSF at least 45 days' written notice, the lender may apply the deposit to the remaining principal; if liquidation proceeds fall below the lender's underwriting value, an exit fee to MSF of no more than 10% of the deposit balance applies

michiganbusiness.org

SSBCI 2.0 allocation

$133.1 million

home.treasury.gov

• No more than 750 employees, and the business must exhibit a collateral shortfall according to the lender's analysis.michiganbusiness.org
• The entire proceeds of the credit facility must be used for projects in Michigan.michiganbusiness.org
• Supports acquisition or improvement of real estate, acquisition of equipment, and working capital.michiganbusiness.org
• For supported loans totaling $500,000 or less, a borrower is generally eligible regardless of industry. For $500,001 or more, the borrower must operate primarily in mobility, manufacturing, professional and corporate services, medical device technology, engineering, design and development, high tech, agribusiness, tourism, logistics or financial services.home.treasury.gov
• Must be a new extension of credit. Following a Treasury rule change, MEDC may support new lending that refinances existing debt held by a third-party, non-affiliated lender; this applies across all MEDC loan enhancement programs.michiganbusiness.org
• Cannot be used for credit facilities supported by SBA or USDA federal guarantees. MEDC says the programs may be used during an SBA 504 construction period if MSF support is released before the SBA debenture closes.michiganbusiness.org

• FDIC-regulated banks, NCUA-regulated credit unions, CDFIs and Farm Credit lenders are eligible; a lender's standing with its regulator may affect eligibility.michiganbusiness.org
• The lender applies to MEDC deal by deal with the Michigan Loan Enhancement intake form, its credit approval documents and MEDC background check forms.michiganbusiness.org
• An account is opened at the lender in the name of the Michigan Strategic Fund, and the deposit agreement is executed at loan closing; MSF funds the deposit after full execution.michiganbusiness.org
• The lender files an annual report on each enrolled credit and any periodic reporting SSBCI requires.michiganbusiness.org
• MEDC asks for the loan's principal balance once or twice a year and withdraws from the account to keep support at the agreed percentage.michiganbusiness.org

• Personal guarantees are required from every individual owning 20% or more of the borrower, or from at least one owner if no one holds 20%; the guaranty is normally subordinate to the lender's existing exposure at closing.michiganbusiness.org
• MEDC collects the lender's credit analysis, borrower financial statements, risk rating justification and cash flows, validates the lender's assessment, and weighs the economic development benefit to the state before approval.michiganbusiness.org
• Support is intended to fill a gap, not to stand alone, and addresses an access-to-credit problem rather than the cost of credit.michiganbusiness.org

• SSBCI 2.0 Enhancement ApplicationMEDC intake form with borrower, lender and economic development dataOpen
• SSBCI 2.0 Cash Collateral Deposit Agreement (template)Deposit agreement between MSF and the lender, executed at closingOpen

• GuideMichigan Business Growth Fund Collateral Support Program fact sheetVersion 03.04.2025michiganbusiness.org
• FormSSBCI 2.0 Cash Collateral Deposit 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

• Nov 10, 2026Guide

  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.

  Read the source
• Jan 23, 2025Program 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.

  Read the source

Contact MEDC Capital Access (businessloans@michigan.org) early in the deal to confirm eligibility and structure. Submit the enhancement application, the credit approval package and signed background check forms. If MSF approves, open an account in the Michigan Strategic Fund's name at your institution and sign the deposit agreement at closing; MSF deposits the cash after all documents are executed.

• MEDC Capital Access (businessloans@michigan.org)
• MEDC customer contact center (888.522.0103)