In an effort to facilitate the growth of the city of Lansing's small business community, Mayor Bernero and the Lansing Economic Development Corporation have worked together to create the Lansing Main Street Loan Fund. This exciting program targets small, existing and start-up businesses and assists in providing the credit necessary for success and job growth.
A $175,000 revolving loan fund, originating from the LEDC's Business Finance Assistance Program, and will provide financing to a minimum of five (5) loans of up to $35,000 beginning July 1 each year. The minimum loan amount for consideration will be $10,000, therefore the number of loans made through the fund may vary based on applications received. Interest rates will generally be market rate as evaluated on a case by case basis, with a minimum rate reflecting the prime rate plus 3%, and dependent upon several factors including but not limited to: the LEDC's position and portion of financing, length of the term, strength of collateral, current credit market conditions, strength of the business plan, as well as the creditworthiness of the applicant.
The LEDC partners with the Michigan Small Business Technology Development Center housed at Lansing Community College to coordinate business training and consultation for the life of the loan to ensure that all companies that have utilized funding are on a successful path. The loan recipients' involvement in consultation and training programs is a mandatory condition of receiving this funding.
Eligible businesses may come from any sector of the economy; the intent of the fund is to facilitate the creation of a new business or the expansion of an existing business that show potential for future job and revenue growth. An eligible applicant must be located in the city of Lansing. Each application is evaluated on a case by case basis by LEDC staff, with particular attention paid to growth potential, as well as overall impact on the local economy. Loan proceeds can be utilized for all aspects of business operations excluding wages and benefits. All applicants will be expected to pay prevailing wage rates on portions of their project when and where this is required by the Economic Development Corporation Act, No 338 of 1974, as amended. Approval of all loans will be handled by the LEDC's Loan Committee and Board of Directors, and by the Lansing City Council.
It is recommended that interested applicants review our Main Street Loan Guidlines, complete Part 1 of our application and email it to Marchelle Smith (mcsmith@lansingmi.gov) at the LEDC or call (517) 485-5419 for more information.
