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Michigan small business lending programs

The government-backed programs a lender can use in Michigan: the state’s own programs, most funded through SSBCI, and the federal programs available everywhere.

SSBCI administratorMichigan Strategic Fund
State programs4
Last reviewedNov 13, 2026

Treasury lists capital access, loan participation, loan guarantee and collateral support programs, plus venture capital. Branded Michigan Business Growth Fund; the Michigan Strategic Fund runs all four debt programs.

Michigan programs

MichiganCollateral support

Michigan CSP

Michigan's Collateral Support Program, funded by SSBCI and run by MEDC for the Michigan Strategic Fund, closes a borrower's collateral shortfall by placing a cash deposit at the lender that is pledged as collateral for a new loan. The deposit can cover up to 49.9% of the loan, letting a lender make an in-policy loan it could not otherwise make.

Michigan Strategic Fund, administered by the Michigan Economic Development Corporation (MEDC)
MichiganLoan guarantee

Michigan LGP

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.

Michigan Strategic Fund, administered by the Michigan Economic Development Corporation (MEDC)
MichiganLoan participation

Michigan LPP

Michigan's Loan Participation Program, funded by SSBCI and run by MEDC for the Michigan Strategic Fund, buys up to 49.9% of a lender's new commercial loan on a pari passu basis. It can defer interest or principal on its share for up to 36 months, which helps borrowers whose projected cash flow the lender sees as speculative, and lenders facing lending limit or concentration concerns.

Michigan Strategic Fund, administered by the Michigan Economic Development Corporation (MEDC)
MichiganCapital access

Michigan CAP

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.

Michigan Strategic Fund, administered by the Michigan Economic Development Corporation (MEDC)

Federal programs in Michigan

Available in every state
FederalLoan guarantee

SBA 7(a)

SBA's primary business loan program: SBA guarantees part of a loan a participating lender makes to an eligible small business that cannot get the credit on reasonable terms elsewhere. Standard 7(a) loans are 7(a) term loans above $350,000 and up to $5,000,000, used for real estate, equipment, working capital, debt refinancing and changes of ownership. Loans are made under SOP 50 10 8.1, effective October 1, 2026.

U.S. Small Business Administration
FederalLoan guarantee

SBA Express

SBA Express is a 7(a) delivery method for loans and revolving lines of credit up to $500,000 that lenders with SBA Express authority approve themselves, using their own forms, analysis and collateral policies. In exchange for this autonomy SBA guarantees at most 50% of the loan. SBA Express loans to veteran-owned businesses pay no upfront guaranty fee.

U.S. Small Business Administration
FederalLoan guarantee

SBA 504

The 504 program provides long-term, fixed-rate financing for major fixed assets such as land, buildings and long-life machinery. A typical project combines a senior loan from a private Third Party Lender (at least 50% of project cost), a junior loan from a Certified Development Company funded by a debenture that SBA guarantees 100% (up to 40%), and at least 10% from the borrower. Projects must create or retain jobs or meet a community development or public policy goal.

U.S. Small Business Administration
FederalMicroloan

SBA Microloan

The Microloan program provides loans of up to $50,000 to small businesses and certain nonprofit childcare centers through SBA-approved intermediaries, which are nonprofit, quasi-governmental or tribal lenders that also provide business training and technical assistance. SBA lends to the intermediaries and funds technical assistance grants; the intermediaries make the credit decisions and set loan terms. The average microloan is about $13,000.

U.S. Small Business Administration
FederalLoan guarantee

USDA B&I

The Business and Industry (B&I) Guaranteed Loan Program guarantees loans that approved lenders make to businesses for projects in rural areas, generally any place outside a city or town of more than 50,000 people and its adjacent urbanized area. USDA Rural Development's Rural Business-Cooperative Service runs it under the OneRD guaranteed loan rule at 7 CFR part 5001. Loans can finance real estate, equipment, permanent working capital, business acquisitions and some debt refinancing, up to $25 million in total B&I loans per borrower.

USDA Rural Development
FederalOther

SSBCI

SSBCI is a federal program, run by the U.S. Department of the Treasury, that funds state, territory, District of Columbia and Tribal government programs supporting private small business lending and investment. Treasury does not lend. Each jurisdiction runs its own mix of capital access, loan participation, loan guarantee, collateral support and equity or venture capital programs under federal rules. Lenders take part by enrolling in the programs each jurisdiction runs.

U.S. Department of the Treasury

What changed in Michigan

  • Guide
    Michigan CSP· Michigan LGP· Michigan LPP· Michigan CAP

    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
  • Program page
    Michigan CSP· Michigan LGP· Michigan LPP· Michigan CAP

    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

Official sources we watch

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.

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