PPP rescue program restarts for narrow slice of banks, small businesses
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The popular Paycheck Protection Program was rebooted Monday morning, but it was not quite the mad dash for dollars seen last spring.
That s because under guidance released last week by the federal agencies administering the small business relief effort, only a narrow sliver of businesses and lending institutions are able to apply for and process loans.
Indeed, only one bank in the state, the Detroit-based First Independence Bank, was permitted to take in loan applications on Monday and Tuesday, based on the federal guidance. First Independence is a Minority Depository Institution (MDI), and one of a small number of Black-owned banks in the United States.
Grow Michigan fund to provide $100 million in loans to minority-owned businesses
Lenders see opportunities for suppliers to FCA expansion in Detroit
Deals targeted to companies who struggle to get traditional financing
Kenneth Kelly
A $200 million statewide mezzanine capital fund, with half earmarked for minority businesses, aims to help grow Michigan s bread-and-butter industries.
Bloomfield Hills-based Grow Michigan II LLC said Thursday that it will target companies with revenue of around $3 million to $50 million and provide loans of between $500,000 to $5 million.
While geared for a relatively small segment of the marketplace, fund Chairman Kenneth Kelly said Thursday that projects such as the expansion of Fiat Chrysler Automotive s assembly plants on the east side of Detroit present downstream opportunity.