Grow Michigan, LLC approves 12 loans worth $20.1M in its first year

Grow Michigan, LLC (Grow MI) has marked a successful first year of accelerating growth and capital investment in some of Michigan’s most promising small businesses. At the close of 2013, Grow MI has approved 12 loans totaling $20.1 million. The total capital investment associated with these loans was $141.0 million.

Through these first 12 loans, Grow MI has invested in small businesses that currently employ more than 1,000 Michigan workers, with growth commitments of an additional 250 jobs across nine Michigan counties. Seven of the 12 investments were made in low to moderate income areas, and all are Community Reinvestment Act eligible.

With $35.7 million of committed capital from leading members of Michigan’s banking community and the Michigan Strategic Fund, Grow MI provides attractively priced risk capital in the form of subordinated/mezzanine debt to Michigan small businesses. Grow MI mezzanine loans, made in conjunction with senior loans, range from $500,000 to $3 million in the form of 3-5 year subordinated debt.

The unique collaboration of the Michigan banking community, Michigan Economic Development Corporation (MEDC) and the Michigan Strategic Fund extends the capabilities of senior debt providers by offering a highly efficient and cost effective risk capital infusion for growing Michigan small business in a broad range of industries.

“Working with Grow Michigan has allowed PNC Bank to expand the reach of its small business lending while supporting our community redevelopment activities,” said PNC Bank Regional President Ric DeVore. “Investing in Grow Michigan is one of the many ways PNC Bank is contributing to the growth of the Michigan economy.”

In addition to the Michigan Strategic Fund, commercial and community banks including Fifth Third Bank, PNC Bank, Huntington, The PrivateBank, Crestmark Bank, Chemical Bank, Independent Bank, Northstar Bank, The Bank of Holland, The Bank of Northern Michigan, Mercantile Bank of Michigan, First National Bank of Michigan, and OSB Community Bank have invested in Grow MI.

“Reasonably priced growth capital for Michigan’s small business community was much discussed, but not available,” said Russell Youngdahl, Jr., CEO of Grow MI.  “We have been successful in proving that with the proper underwriting and partnerships, we can accelerate growth in Michigan by filling the capital needs for small business.”

Grow MI was founded by Russell Youngdahl, Jr., founding and managing member of NorthStar Capital, Henry Brennan, III, Partner of Howard and Howard law firm, David Treadwell, former CEO of EaglePicher Corporation and E. Mark Gregory, III, formerly EVP of Comerica Bank. Messers Youngdahl, Brennan and Treadwell serve as Directors of Grow MI. Mr. Gregory chairs the Grow MI investment committee.

The Grow MI Board of Managers includes equal representation from the investor banks, the Michigan Strategic Fund and the founding members of Grow MI.

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About Grow Michigan, LLC

Grow Michigan, LLC capitalized by members of Michigan’s banking community and the Michigan Strategic Fund, 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 structure 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, LLC approves 12 loans worth $20.1M in its first year