Automotive suppliers who want to
diversify their businesses but don't have the funding could have access
to some of a $25 million program if it's approved. The program could
generate some $100 million in financing for suppliers.
According to excerpts from the story:
The new chief executive of the Michigan
Economic Development Corp. said in an interview that he would propose a
new $25 million lending program designed to help auto suppliers
diversify their businesses.
Gregory Main, who assumed the MEDC
post after the departure of Jim Epolito five weeks ago, said the
program is critical in spite of Gov. Jennifer Granholm's executive
order Tuesday slashing $20 million from MEDC's 10-year, $2 billion 21st
Century Jobs Fund. Main hopes to offer distressed
auto suppliers a fresh source of capital, although the funds would have
to be paired with commercial loans.
"The key here is we're not
going to do the underwriting. The banks are going to continue to do the
underwriting," Main told Business Review."We're going to follow along
and put the banks in a better position to do the loans."
Read the complete story here.
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