Other Resources

Are you a manufacturer that wants to expand? Are you interested in moving your business to Lenawee County? Use the links below to access information about special incentives and financing that may be available to you.

If you wish to speak with someone to assist you with your specific needs contact Tim Robinson at 517-265-5141 or tim@lenaweenow.org for more information.

Center for Empowerment and Economic Development

The CEED MicroLoan Program assists women, low income individuals, and minority entrepreneurs which need small amounts of financial assistance. Under this program, SBA makes direct and guaranteed loans to Intermediaries such as CEED, who use the proceeds to make loans to eligible borrowers. CEED lends up to maximum $50,000.

Economic Development Corporation of Lenawee

The Economic Development Corporation of Lenawee County (EDCLC) was established under Act No. 338 of the Michigan Public Acts of 1974, as amended, the Economic Development Corporations Act, in order to stimulate business capital investment, contribute to the area’s employment, increase local tax base, and provide needed public services.

Lenawee County Brownfield Redevelopment Authority

Under the Brownfield Redevelopment Act PA 381 of 1996, as amended, Lenawee created a Brownfield Redevelopment Authority (BRA) to develop and implement Brownfield projects. A Brownfield Redevelopment Authority is a resource that may use Tax Increment Financing (TIF) as a tool for property redevelopment.

Lenawee County Business Revolving Loan Fund

The Lenawee County Business Revolving Loan Fund program assists businesses getting started, to grow and provide jobs in Lenawee County. Since 2009, the LCBRLF has made loans to businesses totaling over $1,800,000, with loans ranging from $70,000 to $400,000.  Loans are particularly tailored for businesses that, for whatever reason, have found it difficult to meet traditional lending institution requirements.

Lenawee County Hospital Finance

Contact Tim Robinson at 517-265-5141 or tim@lenaweenow.org for more information about this program.

Lenawee County Land Bank

What is a Land Bank?

A land bank is a public authority created to efficiently hold, manage and develop tax-foreclosed property.(1) Land banks act as a legal and financial mechanism to transform vacant, abandoned and tax-foreclosed property back to productive use. Generally, land banks are funded by local governments’ budgets or the management and disposition of tax-foreclosed property.(2) In addition, a land bank is a powerful locational incentive, which encourages redevelopment in older communities that generally have little available land and neighborhoods that have been blighted by an out-migration of residents and businesses.(3) While a land bank provides short-term fiscal benefits, it can also act as a tool for planning long-term community development. Successful land bank programs revitalize blighted neighborhoods and direct reinvestment back into these neighborhoods to support their long-term community vision.

For more information about Lenawee County Land Bank please visit: http://www.lenaweenow.org/business/lenawee-finance-incentives/

MEDC Business Development Program

Michigan Business Development Program

The Michigan Business Development Program is a new incentive program available from the State of Michigan. The program is designed to provide grants, loans or other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or provide investment.

The Michigan Business Development Program (MBDP) is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. The qualified new jobs must be held by Michigan residents and be in addition to those maintained in Michigan prior to the project. Eligible investment includes investment made by the business in Michigan in support of the project and approved by the State. Preference may be given to businesses in need of additional assistance for deal closing and second stage company gap financing.

Private Activity Bonds

“Private activity bonds are an attractive source of financial assistance to economic development projects in Michigan. They provide profitable firms with capital cost savings stemming from the difference between taxable and tax-exempt interest rates.

Public facilities, which generate a revenue stream, (parking structures, for instance) have traditionally been financed by municipalities through tax-exempt ‘revenue bonds.’ Private activity bonds apply this same tax-exempt finance mechanism to the ‘public purpose’ of economic development. The governmental unit borrows money from private capital markets, secured only by the project’s revenues rather than the government’s full faith and credit. Interest income earned on bonds issued by a governmental entity to finance a project for a private company which has demonstrated a good public purpose is exempt from federal, state, and local income taxes, thereby reducing the cost of capital (including the cost of letters of credit, remarketing fees, etc.).

Property Tax Abatements

Michigan Property Tax

Michigan’s 2008 average non-homestead property tax rate was 48.39 mills, or $48.39 per $1,000 of assessed property, with real and personal property subject to taxation at 50% of current market value. Industrial personal property is automatically exempt from 24 mills of school tax, and commercial personal property is automatically exempt from 12 mills of school tax.

Industrial & High-technology property tax exemption:

Public Act 198 of 1974 (P.A.198) provides property tax abatements to industrial processors, high-technology activity companies, research and development laboratories and large communication centers, which can reduce certain property taxes by up to 50%.  A P.A. 198 abatement is negotiated at the local municipal level and is available for up to 12 years.  Investment made within the negotiated time will be eligible for the abatement.   Numerous P.A. 198 abatements have been granted throughout Lenawee County over the years to provide incentive and stimulus for industrial development and expansion.

New Warehousing, Distribution and logistic Facilities in Border Counties:

Public Act 138 provides up to a 50% reduction in property taxes for new warehouse, distribution, or logistic facilities that locate in a border county (Lenawee is a border county).  To qualify for this incentive, at least 90% of the facility, excluding the surrounding green space, must be used for warehousing, distribution or logistic purposes and occupy a building or structure at least 100.000 square feet in size.

Obsolete Property Exemption

Public Act 146 of 2000 provides for a tax incentive to encourage the redevelopment of obsolete buildings into commercial or commercial housing.  The tax incentive is designed to assist in the redevelopment of older buildings, in which a facility is contaminated, blighted or functionally obsolete.  The taxable value on a facility is frozen for up to 12 years.  By freezing the taxable value, a business can significantly improve a building without increasing the property taxes on the building.

Commercial Rehabilitation Act:

Public Act 210 of 2005 provides a property tax abatement for commercial real property that is 15 years or older.  The primary purpose and use is the operation of a commercial business enterprise or multi-family residential use.  The commercial rehabilitation tax freezes the taxable value of that building and only levies specific taxes on the new investments.

Property Tax Exemption for Special Tooling:

Michigan exempts special tooling from all property taxes.  “Special Tooling” includes tools, dies, jigs, fixtures and patterns, which are used to manufacture another product without substantial modification to the device.  Businesses may claim the special tooling exemption on their personal property tax statement filed with the local property tax assessor each year.

Contact Tim Robinson at 517-265-5141 or tim@lenaweenow.org for more information about these programs.

Small Business Administrative Programs

SBA does not make direct loans to small businesses. Rather, SBA sets the guidelines for loans, which are then made by its partners (lenders, community development organizations, and microlending institutions). The SBA guarantees that these loans will be repaid, thus eliminating some of the risk to the lending partners. So when a business applies for an SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. SBA-guaranteed loans may not be made to a small business if the borrower has access to other financing on reasonable terms.

Certified Development Company (CDC) 504 Loan Program

“The 504 Loan Program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization.  504 loans are made available through Certified Development Companies (CDCs), SBA’s community based partners for providing 504 Loans.  504 Loans are typically structured with SBA providing 40% of the total project costs, a participating lender covering up to 50% of the total project costs, and the borrower contributing10% of the project costs. Under certain circumstances, a borrower may be required to contribute up to 20% of the total project costs.

South Central Michigan Works

SCMW! is dedicated to making sure that businesses in our region have the skilled workforce needed to succeed, and that jobseekers are connected to local employers with careers that align with their interests and skill sets. Our workforce investment board makes critical decisions on federal, state and local funding to maximize our investments in the community and create economic prosperity for businesses and individuals. Our alignments with economic development, education and the business community drives innovative workforce initiatives, as well as an outstanding level of employment and training services through our network of One-Stop Service Centers.

Visit South Central Michigan Works’ website.

State of Michigan Financing Programs

Michigan Business Growth Fund Collateral Support Program

“The recent economic downturn has resulted in suppliers’ property, plant, and equipment being devalued by as much as 80 percent. This leaves suppliers little or no collateral value to borrow against in order to fund diversification projects.   The intent of the Michigan Business Growth Fund—Collateral Support Program (mbgf–csp) is to supply cash collateral accounts to lending institutions to enhance the collateral coverage of borrowers. These accounts will cover all or a portion of a calculated collateral shortfall as described by the lending institution.

Michigan Business Growth Fund Loan Participation Program

“Typically, lenders underwrite using historical cash flows from a business to calculate debt service coverage ratios. This practice impedes the ability of businesses to expand and diversify, especially during a slow economy. The Michigan Business Growth Fund—Loan Participation Program (MBGF– LPP) was designed to address this obstacle.

Michigan Pre-Seed Fund

The Michigan Pre-Seed Capital Fund supports high-tech start-up companies as they near commercial viability by providing access to up to $250,000 (matched dollar-for-dollar with outside investments) early-stage capital, accelerating company development. As a central fund to the Michigan SmartZoneSM Network, these funds are designed to support this critical stage in the development lifecycle to prepare companies for follow-on private investment. Companies developing technologies in Advanced automotive, manufacturing and materials, alternative energy, homeland security and defense and life sciences, statewide are eligible for these funds through the Michigan SmartZone Network.

Business Accelorator Grants

Grants to start-up companies for up to $50,000.  The grant will provide funding for consulting services such as business modeling, marketing, strategic planning, or intellectual property advice.  The criteria for application is that the company is Technology-driven, especially with defensible intellectual property.  The company must have less than $1 million in outside investment and less than $1 million or $2.5 million in 12-month trailing revenue (depends on program requirement).  The company is registered with the State of Michigan and at least half the employees physically work in Michigan.

USDA Loan Programs

The Lenawee Now UDSA Loan program has the funding necessary to assist small businesses get started, grow and provide jobs in Lenawee County. Started in 2013, this program works in concert with private financing (banks, equity) to provide micro-financing for projects up to $40,000. Loans are particularly tailored for businesses that, for whatever reason, have found it difficult to meet traditional lending institution requirements.

Venture Capital & Angel Sources of Funding

As part of the A2 Improving Ground Region, Lenawee Businesses have access to a wealth of venture capitalists and Angel investors. The mission of these private firms is to make equity investments in early stage and emerging growth companies. Contact the Michigan Venture Capital Association for more information.

For specific information regarding each of these programs, please visit: http://www.lenaweenow.org/business/lenawee-finance-incentives/