Now more than ever, Northern Michigan is a great place to consider starting, expanding or relocating your business. Numerous tax and incentive programs favor land recycling, job creation and business development. Additionally, capital access and technical assistance is more readily available than every before.
Here are just a few of the many local, state and federal assistance programs now available:
The Brownfield Program uses tax increment financing (TIF) to reimburse Brownfield related costs incurred while redeveloping contaminated, functionally obsolete, blighted or historic properties that are former industrial, commercial, residential or public property. It is also responsible for managing the Single Business Tax and Michigan Business Tax Brownfield Credit legacy programs (SBT/MBT Brownfield Credits).
Capital Access Program
The Capital Access Program (CAP) is one of the Michigan Economic Development Corporation’s innovative programs available to assist businesses with capital needs. The CAP uses small amounts of public resources to generate private bank financing, providing small Michigan businesses access to capital that might not otherwise be available.
After a three year absense, the CAP was re-established in April of 2006 to continue assisting small businesses with their financial needs. The program can be used to finance most types of business (with the exception of construction, renovation, purchase of residential or rental housing, or rental property). The only restriction on the loan size and term is a maximum loan amount of $5 million. Click below to read more.
Commercial Rehabiliation Act (PA 210)
Public Act 210 of 2005 encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period up to 10 years. Types of commercial property enterprises include office, engineering, research and development, warehousing, parts distribution, and retail sales.
Before a Commercial Rehabiliation Exemption Certificate can be granted to the commercial property owner, the city, village or township by resolution of its legislative body must establish a Commercial Rehabiliation District. Click below to read more.
Community Development Block Grant (CDBG) Program
The Community Development Block Grant (CDBG) is a federal grant program utilizing funds received from the US Department of Housing and Urban Development. Funds are used to provide grants to eligible counties, cities, villages, and townships, usually with populations under 50,000 for economic and community development, and housing projects.
CDBG funds target for-profit businesses whose activities will result in the creation of permanent jobs; and will address critical infrastructure needs in the community in which it resides. Click below to read more.
GLE/USDA Revolving Loan Fund & Zero Interest Loan
GLE partners with the United States Department of Agriculture (USDA) on the zero interest loan program, with a pre-application submitted to GLE by the loan applicant and a subsequent full application submitted to USDA upon approval by GLE’s Board of Directors. If USDA approves the application, they loan funds to GLE, who in turn loans funds to the ultimate borrower.
Since loan program activity is too intermittent for GLE to dedicate an employee to loan program administration, GLE depends on the expertise of an outside consultant to ensure that loan applications meet program guidelines and are professionally presented. Applicants are required to retain the professional economic development loan services of Northern Lakes Economic Alliance (NLEA) at their expense for loan application purposes. Contact NLEA at 231-582-6482.
Industrial Property Tax Abatement (PA 198)
Industrial property tax abatements provide incentives for eligible businesses to make new investments in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, renovate aging plants, or add new machinery and equipment. Abatements under PA 198 can significantly reduce property taxes on new investment for eligible firms.
Tax benefits are granted by the city, township or village in which the investment will be located. Click below for more information.
Michigan Manufacturing and Technology Center (MMTC)
The Michigan Manufacturing and Technology Center (MMTC) offers direct technical assistance to small and medium-sized manufacturers to connect them to the best manufacturing practices and technologies available.
Assistance is offered in several areas including lean manufacturing and continuous improvement, quality systems, ISO 14001, costing systems, management, and market diversification. Additionally, a unique performance benchmarking service can compare a company’s performance to that of its peers, making recommendations for improvements. Click below for more information.
Michigan Technical Education Centers (M-TEC)
The State of Michigan is committed to having a highly trained, world-class workforce. With an investment of $60 million dollars, 18 state-of-the-art Michigan Technical Education Centers (M-TECs) have been constructed within the Michigan community college system. The M-TEC network provides an outstanding statewide educational, training and workforce development infrastructure for Michigan’s businesses. Click below to read more.
Personal Property Tax Relief in Distressed Communities (PA 328)
Public Act 328 (PA 328) allows distressed communities, county seats and certain border county communities to abate personal property taxes on new investments made by eligible businesses. Cheboygan County is among the eligible counties.
Abatements under PA 328 reduce property taxes by the full millage rate (including state and local levies). Click below to read more.
Private Activity Bond Program
Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. These tax-exempt bonds are typically issued by or on behalf of a unit of government for the purpose of attracting private investment for projects that have some public benefit. Click below to read more.
Procurement Technical Assistance Centers (PTAC)
Procurement Technical Assistance Centers (PTAC) are considered by most to be the best means to secure government contracts. They can assist in the entire procurement process including registering to become a government contractor, identifying bid opportunities, simplifying the bidding process, expediting payments through electronic invoicing, and assisting with post-award evaluation of your submitted contract and/or award. Click below to read more.
Redevelopment Liquor License (PA 501)
To encourage cities to enhance their quality of life for their residents and visitors to their communities, the Liquor Control Commission may issue public on-premises licenses in addition to those quota licenses currently allowed in those cities. Eligible businesses must be located in an established business district, or redevelopment area; must have a seating capacity of at least 25 people; and have spent at least $75,000 in building improvements; among other requirements. Click below to read more.
SBA Certified Development Company (504) Loans
The U.S. Small Business Administration’s SBA 504 program provides small-and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. Businesses must have a tangible net worth of less than $15 million and an average net profit of less than $5.0 million for the past two years.
Projects are financed through a unique public/private partnership that involves private lenders financing 50% of project costs, a certified development company (CDC) as an agent of the SBA providing up to 40%, and a small business investing 10-20%. Preferred projects range from $250,000 to $10 million. Click below to read more.
The US Small Business Association offers a variety of loan programs for very specific purposes including the 7(a) Loan Guaranty Program with a maximum loan size of $2 million; SBAExpress which is available for loans up to $350,000; CAPLines line of credit program; and Export Working Capital Program. Click below to read more.