“This partnership with Charter One helps businesses grow in Michigan and helps Michigan grow jobs,” Granholm said. “These loans are an important piece of my economic plan to create jobs and opportunities for Michigan citizens. Making sure that businesses have access to capital to grow is critical for stimulating the economy today, keeping the businesses and jobs we have and growing jobs and the economy for the future.”
Charter One’s job creation loans are designed to be an integral part of the Governor’s comprehensive Jobs Today, Jobs Tomorrow economic plan for Michigan.
“Governor Granholm and Charter One share a strong commitment to developing programs that will help revitalize our economy and enrich the lives of Michigan residents,” said Pierce. “Partnering with the state to create a loan pool for the specific purpose of creating jobs helps us deliver on this very important mission. We are proud to serve as a financial engine to help create 5,000 new jobs in Michigan.”
The Charter One Job Creation Loan Program is the first of its kind in Michigan and is scheduled to be in operation over a two-year period. The new loan pool requires borrowers to create a minimum of one full-time job for every $40,000 borrowed at the fixed interest rate of 4.99 percent (2.51 percent below today’s prime rate) for the life of the loan. After 12 months, the offering rate for the program may be reset and would be available for any loan booked in the second year of the program.
The term of the loan will require that the specified jobs be created within three years after the funds are borrowed. The minimum loan size is $1 million, and the maximum is $10 million.
The Michigan Economic Development Corporation (MEDC) will market the unique program to companies already in Michigan and those businesses considering relocating to the state. The agency will also conduct annual audits to certify that borrowers fulfill job creation commitments. In addition, MEDC and Charter One will partner closely with the economic development arms of the city of Detroit and Wayne, Oakland and Macomb counties.
The loan program will be available to qualified borrowers starting immediately and will be serviced through Charter One offices located in twelve counties throughout Michigan, primarily Wayne, Oakland, and Macomb. Companies eligible for the program include any public or privately owned business in a broad array of industry sectors, including manufacturing, distribution centers, emerging sectors, and the 21st Century Jobs Fund competitive-edge technologies: life sciences; alternative energy; advanced automotive, manufacturing and materials; and homeland security and defense.
Joining Governor Granholm and Pierce at the announcement, held in the Governor’s southeast Michigan offices, were city of Detroit Chief Administrative Officer Lucius Vassar, Wayne County Executive Robert A. Ficano, Oakland County Executive L. Brooks Patterson, and Chairwoman Nancy White of Macomb County Board of Commissioners.
Companies interested in obtaining more information about the program can log on to www.michigan.org or e-mail [email protected] or contact the MEDC at 888-522-0103.