Michigan Business Growth Fund Loan Participation ProgramMichigan Business Growth Fund Loan Participation Program

Maximum participation

Up to 49.9% of a new extension of commercial credit

michiganbusiness.org

Maximum MSF amount

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

michiganbusiness.org

Grace period

Reduced or zero interest and principal on MSF's share for up to 36 months; interest on MSF's share does not accrue during that period

michiganbusiness.org

Collateral position

Pari passu (pro rata) with the lender on collateral; repayment is pro rata after any grace period

home.treasury.gov

Closing fee

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

michiganbusiness.org

Annual fee

May be charged at 1% of the MSF balance, charged to the lender

michiganbusiness.org

SSBCI 2.0 allocation

$10.0 million

home.treasury.gov

• No more than 750 employees, seeking a commercial extension of credit from a private lender.michiganbusiness.org
• Intended for borrowers whose projected cash flows the lender considers speculative, or deals where the lender wants a non-competitive participant because of its legal lending limit or a portfolio concentration concern.michiganbusiness.org
• The entire proceeds of the credit facility must be used for projects in Michigan.michiganbusiness.org
• Eligible uses include start-up costs, working capital, equipment and inventory, and construction or renovation of business premises.home.treasury.gov
• 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 Program intake form, its credit approval documents and MEDC background check forms.michiganbusiness.org
• The lead lender services the loan under a Loan Participation and Servicing Agreement: it documents and perfects liens, collects interest, fees and principal, and manages the loan.michiganbusiness.org
• The lender maintains and gives access to loan documents as in a typical participation, and files an annual report on each enrolled credit plus any periodic reporting SSBCI requires.michiganbusiness.org

• The program relies on the lender's credit, operational and financial risk assessment; the private lender acts as lead lender.michiganbusiness.org
• MEDC collects the lender's credit analysis, borrower financial statements, risk rating justification and cash flows, validates the assessment, and weighs the economic development benefit to the state before approval.michiganbusiness.org
• MEDC decides whether to offer a deferment based on a review of the borrower's historical and pro forma financial statements.michiganbusiness.org

• SSBCI 2.0 Enhancement ApplicationMEDC intake form with borrower, lender and economic development dataOpen
• SSBCI 2.0 Loan Participation and Servicing Agreement (template)Participation agreement between MSF and the lenderOpen

• GuideMichigan Business Growth Fund Loan Participation Program fact sheetVersion 03.05.2025michiganbusiness.org
• FormSSBCI 2.0 Loan Participation and Servicing 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. Submit the enhancement application, your credit approval package and signed background check forms. If MSF approves, MEDC provides the Loan Participation and Servicing Agreement in time to sign at closing, and MSF funds its share after full execution.

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