Business on the east side of Washtenaw County is getting some special love from Ann Arbor SPARK.
The business development agency and Washtenaw County have teamed up to create the Eastern Washtenaw Micro Loan Fund. The $225,000 fund will provide precious capital for start-ups based on the east side of the county.
The idea is to help get more promising start-ups up and hiring by providing funding at the outset of their lives, usually the most delicate time of their existence. Most of these companies must be based in the new economy, which covers sectors like alternative energy, homeland security and defense, life sciences, IT and social networking. It will also help some old economy businesses, such as manufacturing, hitting all of the sectors the state is targeting for growth.
"It all ties in nicely," says Elizabeth Parkinson, vice president of marketing and communications for Ann Arbor SPARK.
Each loan will be between $10,000 and $50,000 and last between 2-3 years. The fund is expected to last two years and could be expanded if proven successful. The plan is to eventually make it self-funded.
The eastern side of Washtenaw County (think Ypsilanti/Willow Run area) has been heavily based in manufacturing and other industrial pursuits for generations. As those sectors have contracted, leaving a business void that creates blight and opportunity for emerging businesses. This new money is expected to help create more businesses to fill that void.
The Eastern Washtenaw Micro Loan Fund is modeled after two other existing state and regional funds - the Michigan Pre-seed Capital Fund and the Ann Arbor/Ypsilanti Local Development Financing Authority. Both funds are managed by Ann Arbor SPARK.
Source: Elizabeth Parkinson, vice president of marketing and communications for Ann Arbor SPARK
Writer: Jon Zemke
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