PLYMOUTH, Mich., Feb. 11, 2013 (GLOBE NEWSWIRE) -- Grow Michigan, LLC (Grow MI), a unique collaboration of the Michigan banking community, Michigan Economic Development Corporation (MEDC) and the Michigan Strategic Fund, today announced the completion of its initial round of capitalization and commencement of investing operations.
Grow MI, with capital investment by leading members of Michigan's banking community and the Michigan Strategic Fund, provides top tier strategic management advice and attractively priced risk capital in the form of subordinated/mezzanine debt to Michigan's small businesses. This unique initiative and product offering extends the capabilities of senior debt providers by offering a highly efficient, cost effective and complimentary risk capital infusion for growing Michigan small business in a broad range of industries. Grow MI mezzanine loans, made in conjunction with senior loans, will be in the $0.5-$3.0 million range in the form of 3-5 year subordinated debt, and carry a single digit coupon.
In addition to the Michigan Strategic Fund, commercial and community banks that have invested in Grow MI's initial close are Fifth Third Bank, PNC, Huntington, The Private Bank, Crestmark Bank, Seaway Community Bank, The Bank of Holland, The Bank of Northern Michigan, and Mercantile Bank.
Grow MI's mission is to accelerate growth and capital investment in some of Michigan's most promising small businesses. This will deliver job creation and improve the business climate in Michigan.
"Small businesses are job creation engines and our work to make cost effective risk capital accessible to Michigan companies means real potential for immediate job growth," said Michael A. Finney, MEDC president and CEO. "Grow Michigan demonstrates the genuine leadership, cooperation, co-investment and policy support that our commercial banking partners have provided throughout truly difficult times. They are stepping up to the plate and making a difference."
Grow MI's founding Members include Russell C. Youngdahl Jr., David L. Treadwell, Henry J. Brennan III and E. Mark Gregory III. Messrs. Treadwell, Brennan and Youngdahl serve on the Grow MI Board of Managers with Mr. Treadwell serving as Chairman, and Mr. Gregory chairs the Grow MI Investment Committee. Mr. Youngdahl also serves as CEO of Grow MI.
"The founding Members of Grow Michigan have been involved in working with, and addressing, the capital needs of small businesses in Michigan for decades," said Mr. Russell Youngdahl. "It is, simultaneously, the single greatest catalyst for sustainable economic and employment growth while being highly underserved by capital providers. We understand the opportunity to enhance the growth of jobs in Michigan and look forward to working with the MEDC and our investors to move Michigan forward. The leadership demonstrated by our Investor Bank Members demonstrates their commitment to growing both their small business activities in the State and their support of Michigan, in general."
The Grow Michigan Board of Managers also includes representation from the Michigan Strategic Fund and the Michigan banking community.
About Grow Michigan
Grow Michigan LLC capitalized by members of Michigan's banking community and the Michigan Strategic Fund, provides attractively priced growth capital in the form of subordinated/mezzanine debt to Michigan's small business community. This unique initiative and product offering, including value-added assistance, extends the capabilities of senior debt providers by offering a highly efficient, cost effective and complimentary capital structure for growing Michigan small businesses in a broad range of industries. More information about Grow Michigan can be found at http://www.GrowMiCapital.com.
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CONTACT: Russell C. Youngdahl, Jr. 517-513-8923 email@example.com David L. Treadwell 313-749-5510 firstname.lastname@example.org