MEDC announces 5 new business initiatives to expand 'economic gardening toolkit'
Pure Michigan Business Connect — a multibillion-dollar public-private initiative created last year by Gov. Rick Snyder and the Michigan Economic Development Corporation — is launching five new programs to aid business growth in the state.
The MEDC announced the initiatives at the Detroit Regional Chamber’s Mackinaw Policy Conference this week.
Huntington Bank CEO Steve Steinour speaks to reporters on the porch of the Grand Hotel on Mackinac Island in 2011. Gov. Rick Snyder is pictured over his right shoulder and Michigan Economic Development Corp. Michael Finney is seen over Steinour's left shoulder.
AnnArbor.com file photo
The initiatives “significantly expand our economic gardening toolkit to grow our state’s economy” by providing ways for companies to collaborate and take advantage of growth opportunities, MEDC CEO Michael Finney said in a press release.
The Pure Michigan Business Connect program, which Snyder announced at the 2011 Mackinaw Policy Conference, encourages companies to spend more money in Michigan and helps businesses get additional capital to grow. The program has generated about $8 billion in commitments — more than double the original $3 billion goal.
In 2011, Ohio-based Huntington Bank promised to boost its lending to small- and mid-sized Michigan businesses by $2 billion over four years, while Fifth Third Bank made a $2.5 billion business lending commitment for 2012 as part of the initiative.
DTE Energy and Consumers Energy said in 2011 that they’d collectivity spend $500 million more for Michigan-made products and services over the next five years.
The five new initiatives include:
- Develop Michigan Inc.: A $20 million, non-profit public-private partnership to help bring financing tools and financial expertise to community redevelopment projects.
- Grow Michigan LLC: A public-private partnership that provides equity features to help companies finance aggressive-growth strategies, restructure and assist in ownership transition through succession or acquisition
- Michigan Corps/Kiva.org: A microloan program — initially focused on the city of Detroit — to link individuals willing to lend small sums of money with prospective small business owners who will use the funds to build businesses that improve the overall health of the community.
- Pure Michigan Business Connect business-to-business (B2B) network: Web-based system that links companies together, including a directory of Michigan businesses and an online procurement marketplace.
- State Trade Export Program (STEP) and Export Now: STEP provides financial assistance for companies with fewer than 500 employees for export-related activities. Export Now is an online platform for consumer-product companies in the state to sell their products directly to Chinese consumers.
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
Comments
Stephen Landes
Sat, Jun 2, 2012 : 1:56 a.m.
All of this beats Solyndra and the other "green tech" projects that government is giving money to.
Arborcomment
Sat, Jun 2, 2012 : 6:59 p.m.
Here you go mix, master these: Raser Technologies, $33 million, 2010. Filed bankruptcy 2012. Fewer than 10 employees, owes $1.5 million in back taxes. ECOtality $126.2 million in 2009. Company's CEO sat in the First Lady's box for the 2010 State of the Union address. According to SEC filings, the company has incurred loses of $45 million and has told Feds "we may not achieve or sustain profitability in the near future". Company is under investigation by the SEC and the CEO has been subpoenaed. Nevada Geothermal: $98.5 million 2010. October 2011 NY Times reports company in "financial turmoil". First Solar: $400 million loan guarantee. February 2012, company halts production and lays off 180 employees. Beacon Power: $43 million loan guarantee. Fall of 2011, delisted from NASDAQ and filed for bankruptcy. SunPower: $1.2 billion. As of January 2012, company owes more than what is worth. Brightsource: $1.6 billion. Has posted a string of loses now totaling $177 million. Solyndra - 'nuff said. Fisker - coming soon to a bankruptcy court near you. A123 - see Fisker above. Per a Hoover Inst. study, 71% of Obama's dept. of energy loans went to bundlers, members of Obama's National Finance Committee, or large donors to the democratic party. Per Politico, The Dept of Energy inspector general now has 100 ongoing criminal investigations. Source: Washington Post, 24 May 2012. Op/ed Marc Thiessen
Kai Petainen
Sat, Jun 2, 2012 : 1:36 p.m.
They gave money to A123 and that lost a lot of money to shareholders
jcj
Sat, Jun 2, 2012 : 4:29 a.m.
mixer I suppose you are proud as punch of Obama's "record" . His policies have set the nations economy in motion right? NOT. The evidence of his success was the stack market collapse today.
mixmaster
Sat, Jun 2, 2012 : 2:04 a.m.
Please provide evidence of your claims. This is nothing more than a redistribution of wealth from the taxpayers to corporate hacks. Just the kind of thing that Tea Partiers complain about... only if it comes from a Democrat. At least the Solyndra books are open to scrutiny unlike the MEDC and SPARK
tdw
Fri, Jun 1, 2012 : 10:40 p.m.
I really wish the complaining " corporate welfare/ buddies" crowd would offer at least ONE suggestion.For some reason I don't think my wish will come true
Townie
Sat, Jun 2, 2012 : 2:04 p.m.
TWO suggestions: set up metrics to accurately measure (well, at this point I'd settle for any honest metric) if jobs were created before spending $1.8 billion to 'create jobs'. Have an outside independent audit verify any numbers. Is it that hard to set up some way to measure if this kind of huge spending actually does anything? Is that unreasonable? Doesn't that make sense? As far as the governor and the legislature is concerned no measurement is fine. If you don't really want to know.
mixmaster
Sat, Jun 2, 2012 : 2:07 a.m.
Then the MEDC and SPARK should open their books to public scrutiny and provide a full report of how many jobs have been created and how much of Snyder's tax giveaways stay in the state.
tdw
Fri, Jun 1, 2012 : 11:44 p.m.
Not that I expect a answer but what " pot shots "? like the welfare buddies thing ? and lowering taxes on the working ( wait....Obama has keep them at record lows ) class won't do much if no one want's to do business in Michigan
mixmaster
Fri, Jun 1, 2012 : 11:36 p.m.
Why not lay out your plan for everyone to see instead of just taking potshots at those who disagree with Snyder.
Brad
Fri, Jun 1, 2012 : 10:16 p.m.
Apparently they'll still be relying on "manure" as the primary tool in their "economic gardening toolkit".
mixmaster
Fri, Jun 1, 2012 : 9:54 p.m.
Millions to reinvent the wheel to suit their own image of what American society should look like. Fewer Haves and more have nots.
Cash
Fri, Jun 1, 2012 : 9:38 p.m.
Corporate welfare brought to us by MEDC and SPARK. Thanks.
mixmaster
Fri, Jun 1, 2012 : 9:12 p.m.
I suggest transparency and honesty in how the MEDC handles OUR money and for them to be able to back up their claims of job creation and economic stimulation with third party verification and not use their own rosy forecasts. To this point the MEDC and SPARK have failed in these respects. For all the people who say they don't like government and government spending, they sure do give a pass to these crony capitalist enterprises of Snyder's.
Cash
Fri, Jun 1, 2012 : 8:45 p.m.
http://www.deadlinedetroit.com/articles/592/how_long_will_rich_important_people_pay_thomas_friedman_for_advice_they_ignore Great story at Deadline Detroit on how the best advice is ignored and small ideas prevail.
Veracity
Fri, Jun 1, 2012 : 8:21 p.m.
I guess MEDC CEO Michael Finney has to show some progress to justify his $250,000 a year job. Making money available does not mean that every venture will justify being capitalized. Tax payers will have to wait still more time to see how many new and permanent jobs are created by this investment pool of dollars. Of course I do not recall the last time that MEDC or SPARK has reported actual job created numbers for public consideration.
mixmaster
Fri, Jun 1, 2012 : 4:48 p.m.
More of Snyder's giveaways to his business cronies. Then the counting is done let's see the data on actual job creation and exactly how much of that money stays in Michigan.
jcj
Sat, Jun 2, 2012 : 2:08 a.m.
mixmaster Would you suggest Snyder follow Obama's lead? That has worked out just great for the country right? Not enough job growth in the country to keep the bottom from dropping out of the stock market today!
mixmaster
Fri, Jun 1, 2012 : 11:34 p.m.
You're right. I can only criticize until the next election. Any suggestion that I might make I'm sure you would disagree with, like stimulating demand by lowering taxes on working people instead of corporations. And what suggestions do you have except to continue the status quo, praise Snyder for doing "something" and hope for the best?
tdw
Fri, Jun 1, 2012 : 10:36 p.m.
I guess that means you have no suggestions.Just the tried and true " business buddies " line.
mixmaster
Fri, Jun 1, 2012 : 10:02 p.m.
You argument that "at least he's trying" rings hollow. And what is he trying? And is it succeeding? So far, nothing but hollow promises and cash giveaways. Could it be that Snyder might not be doing the right thing except to make the heads of those privately held corporations a bit richer from the taxpayer trough?
tdw
Fri, Jun 1, 2012 : 10:01 p.m.
So..... no suggestions ?
mixmaster
Fri, Jun 1, 2012 : 9:58 p.m.
SPARK and the MEDC refuse to release third party verification of their job and economic stimulus claims. Furthermore, the head of SPARK, appointed by Snyder makes about $250,000 annually. He has so far refused to address the job creation numbers. You should be asking them why, not me.
tdw
Fri, Jun 1, 2012 : 9:26 p.m.
Never said I know what you are a expert in.It's just that's how you come across ( like telling me what I should or should not eat ).I assume you meant " When the counting is done ".Yes but at least he's trying.However, you still did not give a any suggestions other than blind criticism before any results are known
mixmaster
Fri, Jun 1, 2012 : 9:12 p.m.
You have no idea on what subjects I may or may not be an expert. To claim otherwise really casts doubt on your ability to make a coherent comment. I suggest transparency and honesty in how the MEDC handles OUR money and for them to be able to back up their claims of job creation and economic stimulation with third party verification and not their own rosy numbers. To this point the MEDC and SPARK have failed in these respects. For all the people who say they don't like government and government spending, they sure do give a pass to these crony capitalist enterprises of Snyder's.
Jay Thomas
Fri, Jun 1, 2012 : 7:08 p.m.
He's probably in favor of hiring more government workers ("stimulus"). That's what they are doing in France now.
tdw
Fri, Jun 1, 2012 : 5:23 p.m.
You seem to be a expert on many things.What do you suggest for growth ?