08 State Export finance funds brown
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The document summarizes various financing programs offered by MEDC Capital Services Team to help Michigan businesses access capital. It describes programs that provide angel investments, pre-seed funding, loans, and export financing. The loan programs include the Michigan Business Growth Fund which provides collateral support or loan participations of up to 49.9% for loans to Michigan manufacturers and other eligible businesses. It also outlines the eligibility requirements and application process for these programs.
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08 State Export finance funds brown
- 1. MEDC Capital Services Team Help with financing your exports
- 20. Website: www.michiganadvantage.org [email_address] MEDC Capital Services Team 300 N. Washington Sq. Lansing, MI 48913 Contact Info
Editor's Notes
- Mike- Bullet spacing & type over on Problems Color and type over on Consequences.
- Through the 21 st Century Jobs Fund, the MEDC has made over $20 million in designated pre-seed funds available to groups such as those listed here. Michigan’s award winning SmartZones are collaborations between universities, industry, research organizations, government, and other community institutions intended to stimulate the growth of technology-based businesses and jobs. They provide services such as business support services, consulting, incubator space, talent portals, and networking opportunities. MUCI (Michigan Universities Commercialization Initiative) is a collaboration of 10 universities in Michigan designed to complement and enhance the technology transfer at Michigan academic and research institutions by supporting commercialization of Intellectual Property
- As we discussed earlier, there is a great base for innovation and company formation in Michigan in terms of research and development expenditures and patent generation. But the market has failed to act quickly enough to commercialize this research. The Commercialization Competition was designed to place resources directly in the hands of the most promising and innovative young companies, researchers, and entrepreneurs in Michigan. To date it has awarded $126.3 million to 78 highly recommended projects through a competitive proposal process. The CC helps fund projects in four categories: basic research, applied research, commercialization activities, and support services - in one of four competitive edge technology sectors: life sciences; alternative energy; advanced automotive, manufacturing and materials; or homeland security and defense. The process was peer reviewed by AAAS, an international non-profit organization dedicated to advancing science around the world that developed review panels of experts in each of the 4 targeted sectors as well as professional investors. The awards were made in the form of grants to non-profits (generally university research projects) and loans to for-profits. Flexibility is important as not all companies have the same needs and funding requirements.
- These two programs are investment funds set up in a fund of fund structure and will invest more than $200 million into VC, private equity, and mezzanine funds that target investments in Michigan. Conservatively, it is estimated that the funds invested in by our FoF will raise an additional $600 million of outside capital, however it is likely that this number will be much higher- more than $1 billion. The 21 st CJF requires that funds it makes investments in open and staff an office in MI, while the VMF only requires a significant presence. The two were designed to work together to create a continuum of access to capital – the VMF focuses on seed and early stage investors while the 21 st CJF can invest in later stage, buy-out, and mezzanine funds. Adding to this synergy, while the funds have separate investment committees and governance structures, they are both managed by Credit Suisse’s Customized Fund investment Group.
- Visteon Corp. would have to seek Chapter 11 bankruptcy protection soon because of a liquidity crisis brought on by a reduction of revenue that began in the fourth quarter. Visteon made a bond payment in full last week ahead of a deadline, avoiding a default that had threatened to send the company into bankruptcy. http://www.autonews.com/article/20090316/COPY/303169980 Example 1… United Metal Products –Detroit is a leading high volume stamping & assembly company for a wide range of auto. Purchasing an exiting defense focused stamping company in Florida and moving the work to Michigan. MEDC is reviewing a $2.4MM participation as part of a total $6.0MM loan package for this acquisition. It is anticipated to create a significant number of jobs and will help to stabilize the firm’s revenues. The bank could not justify the entire facility in light of the declining value of automotive receivables which comprise the current majority of the firms work. Example 2… Mark One Corporation builds large materials handling machines for the automotive industry. Typically these machines handle and manufacture parts you can see, body panels, etc.. Mark One was challenged to find a less caustic and more environmentally sound way to clean steel in preparation for stamping and welding. Steel comes with oil and industrial lubricants on it to prevent rust in transit. Typically corrosive chemicals were applied to clean it but this has proven expensive and environmentally unsound. Mark One developed a non-caustic system of rolling the steel clean saving millions of dollars for their clients and venturing into a new, diversified field. Mark One wants to expand its Clean Steel operation but is having difficulty securing financing because its core business is still heavily linked to automotive. Terms are currently under discussion. Working on a third… Wright-K technologies, a 100% automotive supplier has recently secured patents and IP and has formed a new division using cash on hand to attempt to begin supplying the electrified auto drive train and to produce components for the wind energy sector. They have a close relationship with our local economic development partner, Saginaw Future who introduced them to their current bank-1st State Bank. The company has a good relationship with the bank but was struggling to get away from operating on an all cash basis as they begin to commercialize the IP and start selling products and services. They currently have the first $1.0MM request in front of 1st State Bank, who is struggling with the automotive receivables which the parent firm must continue to manage. Participation in this program with 1st State Bank is an ideal solution for both participants. The proposal is currently under review.
- Visteon Corp. would have to seek Chapter 11 bankruptcy protection soon because of a liquidity crisis brought on by a reduction of revenue that began in the fourth quarter. Visteon made a bond payment in full last week ahead of a deadline, avoiding a default that had threatened to send the company into bankruptcy. http://www.autonews.com/article/20090316/COPY/303169980 Example 1… United Metal Products –Detroit is a leading high volume stamping & assembly company for a wide range of auto. Purchasing an exiting defense focused stamping company in Florida and moving the work to Michigan. MEDC is reviewing a $2.4MM participation as part of a total $6.0MM loan package for this acquisition. It is anticipated to create a significant number of jobs and will help to stabilize the firm’s revenues. The bank could not justify the entire facility in light of the declining value of automotive receivables which comprise the current majority of the firms work. Example 2… Mark One Corporation builds large materials handling machines for the automotive industry. Typically these machines handle and manufacture parts you can see, body panels, etc.. Mark One was challenged to find a less caustic and more environmentally sound way to clean steel in preparation for stamping and welding. Steel comes with oil and industrial lubricants on it to prevent rust in transit. Typically corrosive chemicals were applied to clean it but this has proven expensive and environmentally unsound. Mark One developed a non-caustic system of rolling the steel clean saving millions of dollars for their clients and venturing into a new, diversified field. Mark One wants to expand its Clean Steel operation but is having difficulty securing financing because its core business is still heavily linked to automotive. Terms are currently under discussion. Working on a third… Wright-K technologies, a 100% automotive supplier has recently secured patents and IP and has formed a new division using cash on hand to attempt to begin supplying the electrified auto drive train and to produce components for the wind energy sector. They have a close relationship with our local economic development partner, Saginaw Future who introduced them to their current bank-1st State Bank. The company has a good relationship with the bank but was struggling to get away from operating on an all cash basis as they begin to commercialize the IP and start selling products and services. They currently have the first $1.0MM request in front of 1st State Bank, who is struggling with the automotive receivables which the parent firm must continue to manage. Participation in this program with 1st State Bank is an ideal solution for both participants. The proposal is currently under review.