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The Southwestern Alliance
CONNECTIONS
Southwestern Michigan Economic Growth Alliance and
the Berrien County Manufacturers' Council |
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May, 2009 - Volume 1, Issue 3 | |
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Upcoming Events |
| Mike Flanagan, Associate, Capital Markets Development - Michigan Small Business Capital Access Program (TBA)
Manufacturing Diversification Summit (August 19)
Michigan Manufacturing Week (May 11-15)
Michigan Manufacturers Association CEO Forum and Legislator Reception (May 12)
Jan Campbell, Procurement Technical Assistance Center (TBA)
Memorial Day Parades
City of Niles (May 25th at 10:00 a.m.)
City of Buchanan (May 25th at 10:00 a.m.) | |
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| Greetings! |
The sun came out yesterday afternoon just as Ford announced plans to build the new battery-electric Focus in Michigan. I'd like to take a little credit for Ford's decision. I'm sure they realized that there are other customers just like me who said, "My Focus would be absolutely perfect if only it was electric and made in Michigan". I don't buy new cars very often but I just might be ready in 2011 when the first one rolls off the assembly line. While Ford's decision doesn't change everything, it's a start - thank you!
This newsletter issue features quite a few programs and incentive opportunities presented at a recent seminar, "Inside the Economic Development Toolbox" sponsored by the Michigan Economic Developers Association. There is only room for very short summaries so please feel free to ask for more information - we are also scheduling some of the speakers to come to southwest Michigan to present the information - stay tuned.
Shelley Klug, Executive Director |
| Recap of SMEGA Annual Meeting |
| The Southwestern Michigan Economic Growth Alliance's Annual Meeting was held April 22, 2009 at the Fernwood Botanical Gardens in Niles. Mike Welch, president of SMEGA's board of directors welcomed the attendees and invited everyone to review the 2008 Annual Report. Welch then presented the President's Award to Wannis Parris of Delta Machining, Inc. (See photo below)
The award recipient is chosen annually by SMEGA's Operations Committee and is given to either an individual or a business in recognition of "outstanding leadership and dedication to furthering economic development and growth in southwest Michigan." Parris was selected in part for, "developing a culture of commitment to the company's employees by investing in their education, developing apprenticeship programs, and working with local educators to ensure highly skilled workers who are as loyal to the company as the company is to them."
Welch then introduced Shelley Klug, SMEGA's Executive Director. Klug presented a brief summary of the organization's activities in the first quarter and thanked the members and partners who have supported SMEGA's economic development activities, programs, and projects noting that, "your financial support and your partnership support are vital to the continuation of SMEGA's work of keeping our businesses and municipalities healthy and growing." Klug described the strengths of Berrien County's diverse economy and ended by saying, "although there are indeed challenges, we are well-placed and well-equipped to flourish."
The keynote speaker for the meeting was Bill Schalk, the communications manager for the Indiana Michigan Power's Cook Nuclear Plant. Schalk gave an overview of how nuclear power fits into the future of energy policy both nationally and locally. He discussed some of the advantages and challenges associated with all energy sources, the need for improved transmission to support potential wind generation and the potential for expanded nuclear generation - and jobs - in southwest Michigan.
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| Guaranteed Loan Programs from the USDA |
| The following information is from the April, 2009 United States Department of Agriculture newsletter:
The Rural Development Business Loan Guarantee Program is available to lending institutions to enhance their loan portfolios. We know from our conversations with you, the lenders, as well as from rural business owners that the commercial loan environment is tight in today's economy. So, why not look at a loan enhancement product to allow your bank to keep making good loans. With an in-state approval authority of $7.5 million and guarantees of up to 80%, Rural Development is equipped to enhance your commercial loan portfolio. Take advantage of the programs that are available to you to spur economic development in your community.
What is a rural area? Rural areas have a population of less than 50,000 people and are not located contiguous to a non-eligible area. The City of Buchanan just received word (March 26, 2009) that they are now considered a rural area and are eligible for the Business and Industry Loan Guarantee program. Except for the City of Niles, all other municipalities in the SMEGA area are eligible for this program.
For more information call southwest Michigan's representative Lisa Epple at 269-463-8030 or visit the USDA Rural Development website at www.rurdev.usda.gov. |
| Lending and Tax Credit Programs |
| There are always rules and regulations that make financial packaging seem daunting. It isn't easy, but there have been some remarkable transformations accomplished in Michigan through the use of various programs in many combinations. Here is a small sample of some we may have an opportunity to use in the near future:
Michigan Small Business Capital Access Program - The purpose of this program is to assist small businesses with capital needs. The program uses small amounts of public resources to generate private bank financing providing small businesses access to bank financing that might not otherwise be available. CAP loans can be long or short term, term loan or line of credit. CAP loans are available to most businesses located in Michigan that satisfy the bank's criteria. Participating banks offer the CAP directly to companies that need credit enhancement. Similar to a loan loss reserve fund, the bank, the company, and the MEDC pay a small premium into a reserve that makes it possible for the company to receive fixed asset and working capital financing. Mike Flanagan, Capital Markets Development has agreed to speak in southwest Michigan - date and time to be announced.
MEGA Tax Credits (Michigan Economic Growth Authority) - This program has recently changed some criteria to broaden its scope. Standard MEGA credits require the creation of 50 jobs over the statewide employment base that pay a minimum of 150% of Federal Minimum Wage. (The wage amount now includes the company paid portion of health care costs). Rural MEGA credits are available in counties with populations of less than 90,000 such as Cass County. Retention MEGA credits require the retention of a minimum of 50 jobs and an investment of at least $2.5 million at the particular project site. New MEGA eligible projects include tourism facilities or lodging facilities and film or digital media production facilities.
New Market Tax Credits - The NMTC allows taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated Community Development Entities. The redevelopment of buildings in urban, blighted and brownfield areas are at the top of the list for these tax incentives. The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year credit allowance period. This tax credit works especially well when packaged with Historic Rehabilitation Tax Credits, General Rehabilitation Tax Credits for pre-1936 buildings, EPA and DEQ loans and grants, Michigan Historic Rehabilitation and Brownfield Tax Credits, Brownfield Tax Increment Financing, CDBG and HOME funds, and other development loans and grants.
For an entire list of products and services offered by the MEDC go to:
The Berrien County Revolving Loan Fund - The fund was established through partnership with the federal Economic Development Administration and the Michigan Community Development Block Grant program. Funds are used to provide gap financing for manufacturing and commercial projects which, in general would not be funded by a financial institution without such an "equity" investment. Allowable expenditures include the acquistion/construction of real property, the acquisition of personal property, and working capital. For more information on this fund please contact the Berrien County Community Development Department at 269-983-7111 x8617.
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Manufacturing Diversification Summit Coming to SW Michigan |
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The MEDC is sponsoring several Manufacturing Diversification Summits around the state over the next few months. Southwest Michigan's summit will be at the Dowagiac Campus of Southwestern Michigan College on August 19. The goal of the summit is to connect auto suppliers and other manufacturers with industry experts and successfully diversified companies to better understand how to move through the process of diversification. The Michigan Manufacturing Technology Center and the University of Michigan's "Surviving to Thriving Program" will also make presentations. More information will be available in the next few weeks and invitations will be sent soon.
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| SMEGA Member News - City of Niles and Lake Michigan College |
| The City of Niles recently began work on a trail project (made possible through a $170,000 grant from the Michigan Department of Natural Resources and a $150,000 loan from the City's revolving loan fund) to extend the City's existing Riverfront Park Trail north to the Plym Park Golf Course and south to the City limits. This section of the trail is a main feature of the proposed 23-mile bi-state trail connecting Niles city and township with South Bend and Mishawaka. Last month I went on a tour of the trail with representatives from the Michigan Department of Transportation, the National Park Service, City of South Bend, St. Joseph County Parks and Recreation, Niles city and township, the Southwestern Michigan Regional Planning Commission, and other partners.
This trail is going to be a phenomenal amenity for residents, a popular tourist attraction, and provide impetus for community economic development projects along its 23 miles. Future plans include marathons (i.e. a "Y to Y race" connecting the YMCAs in Niles and South Bend and a host of activities featuring the connections between the hospitals and medical centers (think fun runs and fund raising) the colleges and universities (IUSB, Notre Dame, St. Mary's), several farm markets, stores, restaurants, historic and cultural places (Fort St. Joseph, the Century Center, the College Football Hall of Fame, Morris Civic Center, theaters, festivals, etc.) Most of the trail follows along the St. Joseph River and is very picturesque - it is easy to see that it will be a very popular and often-used trail.
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Lake Michigan College received $10,000 for their technology program in recognition of the need for high-tech training for employees. Bill Mach, president of Mach Mold, Inc. recently received the "Mold Builder of the Year" award and the Southwest Michigan Chapter of the American Mold Builders Association also received the "Chapter of the Year" award. Each of these $5,000 awards were presented to Mach to be used for an industry-related program of their choice. The contribution will be used to purchase a CNC milling machine as an upgrade to the LMC Machine Tool Technology program's equipment. Ken Flowers, program director thanked Mach Mold saying, "This gift will not only impact the quality of our instruction, but ultimately will help LMC provide our communities with more highly-skilled laborers." Congratulations to both Mach Mold and LMC.
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| Michigan Manufacturing Week Begins May 11 |
| Michigan Manufacturing Week is a time to spotlight the tremendous contributions manufacturers make to the state. MMA works to promote awareness of the key role manufacturing plays in Michigan's economy through two annual events, the MMA CEO Forum and the Legislative and Executive Reception, as well as the Michigan Manufacturer of the Year Award program. I will be attending these events on May 12 and plan to bring back information (and get some presenters on our schedule) to share with the Berrien County Manufacturers Council. If you are interested in attending, please see the link below for more information.
http://www.mma-net.org/newsinfo/mmweek.asp |
| Website of the Month |
Michigan has just created the "Business One Stop" - a great source for new businesses. Go to the "Site Guide" and take a brief tour of the Michigan Business One Stop and discover firsthand how this online service makes it easier than ever to do business. http://www.michigan.gov/business | |
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Shelley Klug, Executive Director
Southwestern Alliance
Phone: 269-683-1833
Fax: 269-683-7515
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