Grow Michigan invests an additional $11M supporting economic growth and job creation in Michigan

Grow Michigan, an investment fund founded through a joint effort of the Michigan Strategic Fund (MSF) and leading Michigan banks, announced five new loans totaling $11.1 million in the last quarter of 2014.

Grow Michigan has now invested in 19 Michigan companies for a total of $31.8 million since May 2013. Combined with partnering loans from Michigan banks, the total funded to Michigan companies is more than $200 million.

“Our success is based on our unique formula of partnering with senior banks and the MSF to provide gap financing not otherwise available to small but growing companies in Michigan,” said Russell C. Youngdahl Jr., CEO of Grow Michigan.

The small businesses that are growing because of the loans employ nearly 2,000 Michigan residents. They have added a combined 380 new employees as a result of the loans, and will continue to add jobs and generate revenue in the state as they grow in the future.

“The investment by the MSF is integral to our success,” Youngdahl said. “The MSF will receive a return of, and on, its investment as Grow Michigan’s investments mature and are repaid, and the current activity shows this should be a great success for the businesses in which we are investing, the people they employ and the state’s economy in general.”

Grow Michigan has made investments in eight different Michigan counties to date, including many low and moderate-income areas.

Grow Michigan, LLC is capitalized by 19 of Michigan’s leading banks and the Michigan Strategic Fund, which is administered by the Michigan Economic Development Corporation (MEDC), with a total authorized capital of $60 million. Grow Michigan provides attractively priced growth capital in the form of subordinated/mezzanine debt to Michigan’s “small business” community. This unique initiative and product offering, including value-added assistance, extends the capabilities of senior debt providers by offering a highly efficient, cost effective and complimentary capital for growing Michigan small businesses in a broad range of industries. More information about Grow Michigan can be found at http://www.GrowMiCapital.com..

Grow Michigan invests an additional $11M supporting economic growth and job creation in Michigan