ELG's New Gap Financing Fund
Between 2001 and 2008, Washtenaw County lost almost 14,000 manufacturing jobs. This job loss has resulted in high unemployment rates and loss of per capita income and tax base. In an effort to offset these negative impacts, the Eastern Leaders Group has initiated several job creation programs. These include the SPARK East Incubator, SPARK East micro loan program, the Center for Empowerment and Economic Development micro loan program and the Commercial building renovation grant pilot program. The Gap Financing Pilot Program is one additional tool that the County can use to replace job loss in the eastern side of the county.
The Gap Financing Pilot Program provides additional funding to manufacturing companies that wish to expand their operations. It is intended to supplement company investment and bank financing for eligible expansion costs including the purchase of equipment or inventory, facility enhancements and other company expansion expenditures not to include working capital or refinancing. Gap financing can be provided in the form of a grant or a no interest loan. The program is considered to be a pilot program due to the limited amount of funding available at this time and the desire of the ELG to track program performance. $30,000 is available for financing company expansions in 2010 and funding will be based on number of jobs created in the expansion.
Companies must meet the following criteria before applying for funding:
- Be located in eastern Washtenaw County, Michigan
- Have the rights (ownership or license) to the expanded or new product
- Expand a product line or create a new product line
- Create new jobs in the Washtenaw County
For more information, contact Tony VanDerworp, Executive Director of the Eastern Leaders Group, at firstname.lastname@example.org to discuss company eligibility, funding available and application process and submittals.