Incentives/Financing Assistance
Traverse Bay Economic Development Corporation’s incentive and financing assistance is for businesses that are locating to the region, as well as those that choose to expand here. These incentive and financing options seek to attract and retain jobs and employers that are indicative of the region’s strive for excellence.
To learn more about some of the incentive and financing options available to your business, select a topic. For more information on any of these programs, contact the Traverse Bay EDC.
Local Financing Programs
Benzie County Revolving Loan Fund (RLF)
The Benzie County Revolving Loan Fund is part of a federal program that requires job creation and low to moderate income beneficiaries. Eligible jobs must be new positions at your company. State guidelines for this program allow an applicant to borrow up to $35,000 per created position. A form will be provided to you after approval of your loan to help you gather the required income information from your new employees.
Funding is available for cleanup and redevelopment of properties that were once considered unavailable for development. If you are interested in a property that is contaminated, blighted, or functionally obsolete, the Brownfield program could pay for cleanup and redevelopment costs.
Cherryland Electric Cooperative RLF
The purpose of the Revolving Loan Fund is to assist economic development in the rural area served by Cherryland Electric Cooperative. This will be done by focusing on the creation and retention of jobs in the Cooperative’s service area. The Revolving Loan Fund is primarily to be used for capital projects in expanding existing industry or promoting new industry in the service area.
Grand Traverse County RLF
The Grand Traverse County Revolving Loan Fund is part of a federal program that requires job creation and low to moderate income beneficiaries. Eligible jobs must be new positions at your company. State guidelines for this program allow an applicant to borrow up to $35,000 per created position. A form will be provided to you after approval of your loan to help you gather the required income information from your new employees.
Kalkaska County RLF
The Kalkaska County EDC manages a Revolving Loan Fund that serves to assist the companies in Kalkaska County.
The Leelanau County EDC seeks to increase the diversification of the existing economic base by providing employers with capital for business start-ups and expansions and assist with the development of new facilities.
Traverse Angels is an invitation-only, select network of successful entrepreneurs, professionals, as well as business and community leaders in the Traverse City, Michigan area, who provide investment capital, strategic advice and mentoring to early-stage companies to help them achieve market leadership.
State Financing Options
21st Century Jobs Fund
Administered by the Michigan Economic Development Corporation, the 21st Century Jobs Fund offers grants to projects that promote job growth and help to diversify Michigan’s economy, especially in high technology.
An innovative loan program that supports a direct business loan from participating financial institutions, providing small businesses with capital that otherwise might not be accessible.
Charter One Job Creation Loan Program
The State of Michigan and Charter One Bank have partnered to help businesses access affordable financing to invest in equipment, machinery, building acquisition or remodeling. The purpose of this program is to grow Michigan's economy.
Community Development Block Grants
A federally-funded program administered, in part, by the Michigan Economic Development Corporation. Grants are available for public infrastructure improvement projects that support new businesses and business expansions, and for job development.
Employee Stock Ownership Program (ESOPs)
Employee ownership is a business operation in which employees own a significant percentage of company stock. There are more than 10,000 such companies nationally, employing over 10 million workers. Michigan has more than 300 employee-owned corporations.
Services are available to any company, individual or organization interested in employee ownership, including:
- For qualified companies, general consultation and information on employee ownership program options, including ESOPs, ESOP financing, and employee buyouts
- Referral to other technical assistance and training programs available through the Michigan Economic Development Corporation and other resources
- For general information on ESOPs, visit the ESOP Association web site.
Infrastructure Programs for Economic & Community Development
The Community Development Block Grant Program (CDBG) is a federally-funded program administered, in part, by the MEDC. For profit businesses engaged in an economic base activity (e.g. manufacturing, point-of-destination tourism, headquarter operations, major multi-state distribution facility) can work with eligible communities and their respective MEDC Business Account Manager to request grants to provide public infrastructure improvements. Public infrastructure includes items such as: public water or sanitary sewer lines and related facilities, streets, bridges and public utilities.
Michigan Economic Growth Authority (MEGA)
The MEGA program awards tax credits to promote economic growth and job creation. If your company is creating jobs, you may qualify for a tax credit under MEGA.
Michigan NextEnergy Authority (MNEA)
The MNEA promotes the development of alternative energy technologies and provides tax incentives for business activities and property related to the research, development and manufacturing of those technologies. MNEA is responsible for certifying taxpayers and property as eligible for tax credits against the Michigan Single Business Tax (SBT) or exemptions from the general property tax.
Private Activity Revenue Bonds (PARB)
Private Activity Revenue Bonds (PARBs) or Industrial Development Revenue Bonds are a means of financial assistance for economic development efforts. The Michigan Strategic Fund (MSF) issues the PARB, lending the bond proceeds to the borrower.
Property tax abatements are available for industrial, personal, and obsolete properties that will be used in manufacturing or development of communities in decline.
A Renaissance Zone is an area in need of new jobs and economic growth. These zones levy virtually no state or local taxes, providing major incentives for business potential.
Federal Financing Programs
Economic Development Administration (EDA) Grants
The federal Economic Development Administration invests in local communities for economic development purposes. Grant programs include:
- Public Works and Economic Development Program
- Economic Adjustment Assistance Program
- Research and National Technical Assistance
- Local Technical Assistance
- Planning Program
- University Center Economic Development Program
- Trade Adjustment Assistance for Firms Program
Small Business Administration (SBA) Loans
SBA CDC/504 loans provide long-term, fixed-rate financing for major assets such as land, buildings, parking lots, and improvements on existing facilities, streets, and utilities, and modernization projects. It allows smaller companies to access the kind of capital typically only available to larger businesses. Benefits include a relatively low down payment, fixed rates, long terms, and low interest rate. This program is used to support economic development.
US Department of Agriculture (USDA) Rural Development Grants
Grants provided by the USDA Rural Development offices help to fund projects in support of sustainable economic development in rural communities. Projects can include economic planning, technical assistance, training for entrepreneurs, and cooperatives. Two grant sources exist: the Rural Business Opportunity Grant and the Rural Cooperative Development Grants.