Michigan Business Growth Fund Loan Guarantee Program
Michigan's SSBCI-funded Loan Guarantee Program gives CDFIs and other small business lenders a partial guarantee, up to 80% per loan, on a portfolio of new small loans. The lender underwrites each loan and enrolls it under one agreement with the Michigan Strategic Fund. It targets small, micro and SEDI-owned businesses that cannot get adequate credit on adequate terms.
- Last reviewed
Key terms
- Loan size
- MEDC: generally $250,000 or less. Treasury's program summary: $500,000 or less.
- michiganbusiness.org
- Enrollment window
- Loans may be enrolled for up to 36 months from the date the loan guarantee agreement is signed
- michiganbusiness.org
Borrower eligibility
- Small businesses with fewer than 250 employees: corporations, partnerships, sole proprietorships and other for-profit businesses.michiganbusiness.org
- Eligible purposes include start-up costs, working capital, franchise fees, equipment, inventory, and the purchase, construction, renovation or tenant improvements of a place of business not held for passive real estate investment, and other tangible or intangible assets except goodwill.michiganbusiness.org
- Loans must be a new extension of credit, aimed at small, micro and SEDI-owned businesses historically unable to obtain adequate credit or adequate terms.michiganbusiness.org
- SSBCI funds may not support a loan for the same purpose as an SBA 7(a), SBA 504 or USDA Business and Industry guaranteed loan to the same borrower.michiganbusiness.org
- 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
Lender requirements
What a lender must be or do to make these loans.
- Any insured depository institution, insured credit union or CDFI may participate, but it must show sufficient commercial lending experience and financial and managerial capacity.michiganbusiness.org
- One loan guarantee agreement is signed with the lender, setting the terms, including rate and term, of enrolled loans. MEDC reviews and approves guarantee applications and issues a commitment letter.michiganbusiness.org
- The lender submits a Loan Enrollment Form for each loan no later than 30 days after making it.michiganbusiness.org
- The lender must submit annual reports on the status of all enrolled loans.michiganbusiness.org
- Under the template agreement, the lender delivers audited annual financial statements within 180 calendar days after its fiscal year end.michiganbusiness.org
- Claims are filed in two parts under the template agreement: a Part I claim within 30 calendar days after an enrolled loan becomes delinquent, and a Part II claim no sooner than 90 calendar days after Part I.michiganbusiness.org
Underwriting requirements
What the credit file has to show.
- The lender is responsible for underwriting the loans.michiganbusiness.org
- Collateral is required in some form on all loans, and owners of 20% or more must guarantee in all cases.michiganbusiness.org
Required documents
- SSBCI 2.0 Loan Guarantee Agreement (template)Master agreement between MSF and the lender, including the loan enrollment and claim formsOpen
Governing documents
The rules a file is held to, with the version in force.
- GuideLoan Guarantee Program fact sheetVersion 03.05.2025michiganbusiness.org
- GuideLoan Guarantee Program overviewmichiganbusiness.org
- FormSSBCI 2.0 Loan Guarantee 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
CDFIs and small business lenders contact MEDC Capital Access (businessloans@michigan.org). MEDC reviews the lender's capacity and guarantee application and issues a commitment letter; the lender then signs one loan guarantee agreement with the Michigan Strategic Fund and enrolls each qualifying loan within 30 days of making it. Borrowers apply through an enrolled lender.
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 LGP on Kita.
Kita underwrites the whole file, configured to your own credit policy and to the programs you run. Your underwriter keeps the decision.
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 LGP requirements and flags what is missing before it reaches review.
Every figure links to the page it came from, so it can be checked.