Are you planning to start a new business in Michigan but have no funds to help with expenses? Today, the number of small businesses is increasing rapidly, especially in Michigan, and so are the funding options. So, if you’re one of these business super-owners looking for a small business loan in Michigan, this guide is for you.
If you are new to this, know that a micro business loan is more straightforward to qualify for than other types of loans and could be precisely what you need.
There are plenty of lenders offering business loans to help you grow your business. So, there is nothing to be concerned about.
Below are the five best trim business loan options and essential information regarding small business financing in Michigan.
Small Business Loans in Michigan: Top 5 Options
Whether you are looking to start a new business or expand an existing one, the following business loan options will help you.
1. Small Business P2 Loan Program
In the small business P2 loan program, P2 stands for pollution prevention. This program is run by the Michigan Department of Environment, Great Lakes and Energy (EGLE). It provides funds to businesses making efforts to achieve sustainability, reduce waste and conserve energy.
To qualify, your business must be:
- Independently owned and operated
- A for-profit company that is not dominant in the industry
- Have 500 or fewer full-time employees
- Involved in projects that support sustainability, waste reduction, and energy conservation
If you meet all the criteria, you can request up to $400,000 in funding at an interest rate of 5% or less.
2. Invest Detroit
It is a partnership of several local organizations and philanthropists trying to stimulate economic growth in Detroit. They share a common goal of helping struggling businesses to qualify for traditional financing.
Invest Detroit says on their website that their small business loans range from $50,000 to $2.5 million. Also, they provide help with business plan writing, mentorship, and necessary technical training.
Not only this, Invest Detroit has a venture capital arm for entrepreneurs who need equity financing in Michigan.
3. Michigan First Credit Union
In Michigan, credit unions are one of the best places to get small business loans. Credit Unions are membership-based and more community-oriented than banks.
These are nonprofits and cooperatives charging low-interest rates and fees on loans. If you have a bad credit score, low business revenue, and other negatives in your loan application, you may still get approved through credit unions.
When you talk about credit unions in Michigan, the Michigan First Credit Union tops the list. Here you can apply for SBA loans, U.S. Department of Agriculture-backed business loans, and conventional term loans. To apply, visit the Michigan First Branch near you.
Small Business Loans Alternatives
If you don’t feel like applying for small business loans, you can consider small business grants for your Michigan business. Below are the top small business grants in Michigan.
- Michigan Business Development Program
- Accelerate Michigan Innovation Competition
- Michigan Corporate Relations Network Small Company Innovation Program (SCIP)
- Motor City Restore
- Motor City Match
However, bear in mind that small business grants are highly competitive. So, don’t be discouraged if you are not selected. Also, make sure you understand the eligibility requirements before applying.
Getting a small business loan in Michigan shouldn’t be hard, and it doesn’t need to take months to get approved.
At Specialty Capital, we have experts who make getting small and large business loans in Michigan simple, quick and stress-free. So, reach out to us today to get approved for small business loans in Michigan.