Michigan small business grants, loans and training funds (2026)

Four kinds of money, and which Michigan programs fit each

• State-backed loans (you repay). The Michigan Business Growth Fund’s Loan Guarantee, Capital Access, Collateral Support and Loan Participation programs. Your lender applies to MEDC, not you ⁠¹.
• Equity (investors take ownership). The Small Business Venture Capital Program, which MEDC invests through venture firms rather than directly in companies ⁠¹.
• Reimbursement grants for specific costs. MI-STEP for exporting, the Going PRO Talent Fund for training and the Emerging Technologies Fund for SBIR/STTR firms ⁠⁹⁠⁷⁠¹¹.
• Local place-based grants. Match on Main in Redevelopment Ready and Main Street communities, and Motor City Match in Detroit ⁠¹²⁠¹³.

How the Michigan Business Growth Fund backs a bank loan

Treasury allocated Michigan $236,990,950 under SSBCI. As of December 31, 2025, the state had received $150,574,451 and reported $107,905,939 deployed, or 45.5% of its allocation ⁠². The four loan programs solve different problems for a lender:

Scroll the table sideways to see every column.

Sources: ⁠³⁠⁴⁠⁵⁠⁶. MEDC does not publish the Capital Access premium rates in its fact sheet.

The Loan Guarantee Program is the startup option. It lists startup costs, working capital, franchise fees, equipment, inventory and non-passive real estate as eligible uses. It aims at small, micro and socially and economically disadvantaged (SEDI) owned businesses, including minority, women, service-disabled veteran and veteran owners in distressed communities ⁠⁴. Collateral is required in some form, every owner with 20% or more must sign a personal guarantee, and the loan cannot support the same purpose as an SBA 7(a), SBA 504 or USDA B&I guaranteed loan ⁠⁴. The March 2025 fact sheet lists eight participating lenders: Detroit Development Fund, First Independence Bank, Invest Detroit, Metro Community Development, Michigan Womens Foundation, Northern Initiatives, Urban Empowerment Fund and Venture North ⁠⁴.

Capital Access loans can be term loans or lines of credit. They cannot refinance existing debt, fund residential housing, casinos, stadiums or passive real estate, or cover the unguaranteed part of an SBA loan ⁠³. Thirteen institutions were enrolled as of March 2025, from Independent Bank and Isabella Bank to Upper Peninsula State Bank and West Shore Bank ⁠³.

Collateral Support and Loan Participation are for larger or riskier deals. Above $500,000 in program-supported loans, the borrower must operate mainly in mobility, manufacturing, professional and corporate services, medical devices, engineering and design, high tech, agribusiness, tourism, logistics or financial services ⁠⁵⁠⁶. MSF charges the lender a 1% to 2% closing fee and a 1% annual fee on its share ⁠⁵⁠⁶. Collateral Support lists 43 participating lenders, including Comerica, Fifth Third, Huntington, Lake Michigan Credit Union and Northern Initiatives. Loan Participation lists 14 ⁠⁵⁠⁶.

Equity through the Small Business Venture Capital Program

The SSBCI venture program puts state money into qualified venture capital funds as a limited partner. It targets early-stage technology companies headquartered in Michigan, and MEDC states that it will not invest these funds directly in businesses ⁠¹. A founder seeking equity should pitch the Michigan-active funds themselves. MEDC points to the Michigan Venture Capital Association’s investment landscape guide for a list of them ⁠¹.

Going PRO Talent Fund: training grants routed through Michigan Works!

The Going PRO Talent Fund pays employers’ costs for short-term training that fills a demonstrated skill gap and ends in a transferable, industry-recognized credential, for new hires and current staff ⁠⁷. You cannot apply cold. A Michigan Works! agency’s business services staff first hold a fact-finding session to check your skill gaps, training providers and any federal funding. Only then do they give you access to the online application ⁠⁷.

Small firms do well here. From 2014 to 2026, companies with fewer than 100 employees received 5,273 awards, 59% of the total, and the average training cost was $1,376 per person (data as of December 9, 2025) ⁠⁷. Fiscal year 2026 Cycle 2 closed April 24, 2026 ⁠⁷. Status for FY2027: delayed. SEMCA Michigan Works! reports that the window will not open until early 2027 and that dates have not been announced ⁠⁸. LEO does not post a per-trainee cap on its program page, so ask your Michigan Works! contact for the current employer guide.

MI-STEP pays back 75% of export marketing costs

MI-STEP reimburses 75% of pre-approved export expenses, up to $15,000 per fiscal year ⁠⁹. Michigan received an $847,000 SBA STEP award for the coming year, and MSF adds a $282,333 match ⁠¹⁰. Applications are accepted October 1 through September 15, so the current window is open. Awards are competitive and not guaranteed ⁠¹⁰. In fiscal 2025, MI-STEP funding went to 117 small businesses ⁠¹⁰.

To qualify, a company must meet SBA size standards, have an EIN tied to a Michigan address and be in good standing with the Michigan Department of Treasury. It also needs at least $100,000 in gross annual revenue, must be a full-time operation, and must export goods or services of U.S. origin or with at least 51% U.S. content. Wholesale distributors of imported products are not eligible ⁠⁹.

Eligible costs include trade mission fees, trade show booth space, economy airfare and lodging at the federal per diem rate for foreign sales trips, U.S. Commercial Service Gold Key services, translation of marketing media, compliance testing or certifications, and shipping product samples ⁠⁹. Meals, passport and visa fees, ground transportation and printing are not reimbursed. Travel is limited to two U.S.-citizen travelers, and reimbursement is first-come, first-served even after approval ⁠⁹.

Matching an SBIR or STTR award through the Emerging Technologies Fund

The Emerging Technologies Fund adds up to $25,000 to a Phase I and up to $125,000 to a Phase II federal SBIR or STTR proposal ⁠¹¹. Approved applicants get a letter of support to include with the federal proposal, which means the ETF application comes before the federal submission ⁠¹⁵. The Michigan SBDC runs the fund, takes applications online at mietf.org, and arranges SBIR proposal reviews with BBC Entrepreneurial Training & Counseling ⁠¹¹. Firms working with a SmartZone accelerator can also receive Business Accelerator Fund services worth up to $50,000; most engagements run $7,000 to $15,000 ⁠¹⁵.

Place-based grants: Match on Main statewide, Motor City Match in Detroit

Match on Main pays up to $25,000 per project to a new or expanding business in a downtown or commercial district. It pays only after the project is finished, as one lump-sum reimbursement ⁠¹². You do not apply to MEDC. A downtown development authority, Main Street program or similar organization in an Essentials or Certified Redevelopment Ready Community, or a Select or Master level Michigan Main Street community, picks up to two local businesses per round and applies for them ⁠¹². Eligible uses include outdoor space, design help, marketing, technology and point-of-sale systems, and retail inventory. Projects must be finished within 12 months ⁠¹². The FY2026 window closed April 20, 2026, and drew 152 applications. MEDC has not announced the next round ⁠¹².

Motor City Match Cash Track grants close a financing gap for a business opening its first Detroit location, or an additional one. Expanding in your current space does not qualify ⁠¹³. Grants run up to $100,000 and generally no more than 50% of project costs. The average is $50,000, the owner must put in at least 10% equity, and a project that can be fully funded without a grant will not get one ⁠¹³. Round 33 accepted applications from September 1 to October 1, 2026, and is closed ⁠¹⁴. Its Plan, Develop and Design tracks offer business planning and design help rather than cash ⁠¹⁴.

Lining up Michigan funding, in order

1. Book a Michigan SBDC consultation

   Use the online request form. Bring a business plan, the amount you need and any financial statements or projections. Consulting is free ⁠¹¹.

2. Choose a lender from MEDC’s lists

   For a startup or loan under $250,000, contact one of the eight Loan Guarantee lenders, which are mostly CDFIs ⁠⁴. For larger loans, ask a Collateral Support or Loan Participation lender about a collateral or cash-flow gap ⁠⁵⁠⁶. Your lender sends MEDC the intake form, its credit approval and background check forms; questions go to [email protected] ⁠⁵.

3. Expect to guarantee the loan personally

   Owners of 20% or more sign personal guarantees under the Loan Guarantee and Collateral Support programs ⁠⁴⁠⁵.

4. Get on a Michigan Works! list now if you plan to train staff

   The fact-finding session takes time, and the FY2027 Going PRO window will open in early 2027 ⁠⁷⁠⁸.

5. Exporters: contact an International Trade Manager before you travel

   Expenses must be pre-approved, and you file the reimbursement worksheet and proof of payment afterward ⁠⁹.

6. Tech founders: apply to the ETF before you submit to the federal agency

   Include the ETF letter of support in your SBIR/STTR proposal ⁠¹⁵.

7. Ask your downtown authority or Main Street office about Match on Main

   They decide which businesses to put forward ⁠¹². In Detroit, take the Motor City Match track quiz and watch for the next round ⁠¹⁴.

8. If you are turned down, ask why and reapply

   A lender’s credit decision can be taken to another listed lender. Motor City Match offers feedback on request ⁠¹³. MI-STEP and Match on Main take new applications each fiscal year ⁠¹⁰⁠¹².

For other help in the state, see the Michigan overview and the Michigan cash assistance guide, or compare states on the small business grants hub.