Snyder Rolls Out $3 Billion Economic Boost
Michigan's businesses will have new ways to buy and sell, raise capital, and connect with each other through Pure Michigan Business Connect.
The new $3 billion public-private initiative, announced by Gov. Rick Snyder and business leaders Thursday at the Detroit Regional Chamber's Mackinac Policy Conference, is an alliance of the Michigan Economic Development Corp., state agencies and major Michigan companies and organizations. Administration officials say it's an example of the governor's "economic gardening" philosophy.
"Pure Michigan Business Connect is the cornerstone of a new toolkit for economic gardening we are developing that's built on Michigan's broad asset base of strong corporate enterprises, innovative entrepreneurs and rich technology resources," Snyder said.
Besides state agencies, initial participants are Huntington National Bank, Consumers Energy, DTE Energy, Stage 2 Innovations, Automation Alley, Export Import Bank and economic development partners who joined with the MEDC in making the announcement at a news conference at the Grand Hotel Thursday.
Listen to the annoucement:
Podcast
Snyder said the state's replacement of the Michigan Business Tax, a modified gross receipts and profits tax, with a flat 6 percent tax on corporate profits, was part of the offer. The Pure Michigan Business Connect Web site, www.MichiganAdvantage.org/business-connect, also includes the following offers from the participating organizations:
* MEDC -- $100 million in economic development incentives, $25 million for entrepreneurship and innovation programs that provide capital and support services to early stage Michigan businesses. Through its Michigan Collateral Support and Loan Participation Programs: offering $80 million to generate an additional $800 million in Michigan bank loans for Michigan businesses.
* Huntington National Bank -- Committed $2 billion in lending over four years for commercial and small Michigan-based companies, the largest commitment to date for the program.
* Consumers Energy -Pledged to dedicate an additional $250 million over five years to purchase goods and services from Michigan-based suppliers.
* DTE Energy -Pledged to dedicate an additional $250 million over five years to purchase goods and services from Michigan-based suppliers.
* Stage 2 Innovations - Private investment group headed by former Chrysler Corporation Chief Executive Officer Tom LaSorda -- working in conjunction with Automation Alley - pledged $100 million for second stage fund for Michigan businesses with innovative technologies to accelerate large-scale commercialization.
* Export Import Bank - Committing to work with the governor and MEDC to more than double the dollar value of its investment deals with Michigan-based small businesses to $187 million by 2015 from $75 million in 2009. In addition, Ex-Im is pledging to do a Global Access for Small Business Forum in Michigan.
Joining Snyder at the announcement were MEDC President and CEO Michael Finney, Huntington Bank Chairman, President and CEO Stephen D. Steinour, Consumers Energy President and CEO John Russell, DTE Energy President and CEO Gerry Anderson, and Business Leaders for Michigan President and CEO and MEDC Chair Doug Rothwell.
"This is an invitation to Michigan's business community, companies that have supply needs or funds to lend and those that are looking for new opportunities, all are encouraged to join Pure Michigan Business Connect," said Michael Finney, MEDC President and CEO. "Transforming Michigan's economic ecosystem requires the broad involvement of our state's business community - our largest, most prominent companies along with the newest and least known and those of all sizes and sectors in between -- working with local and state economic development agencies."
