LANSING – Michigan Gov. Jennifer Granholm announced on Thursday a $200 million loan partnership with Charter One Bank, the “integral” part of her job creation plan, which should create 5,000 new jobs in the state.
The Charter One Job Creation Loan Program, which is slated to start immediately, will issue loans of $1 million to $10 million each to businesses that agree to create one full-time job for each $40,000 they borrow at a fixed interest rate two and half points below the current prime.
The concept is based partly on the idea that as lower interest rates have helped sell vehicles, they may help convince entrepreneurs to build or expand in the state.
Speaking at a Detroit press conference, 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.”
The Economic Development Corporation will market the program to existing Michigan companies and to those who are considering relocating to the state. The agency will also conduct annual reviews to ensure companies are fulfilling job creation requirements, which must be met within three years after the loans are issued.
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