FINANCING
The Tuscola County Economic Development Corporation will work with you
to help obtain financing through the many financial programs that
are available within Michigan, including the EDC's Revolving Loan Fund.
SBA 504 Loans
This loan program can provide up to 90% of the financing for
fixed asset needs, with terms up to twenty years at attractive
interest rates. Eligibility is based on net worth of less than
six million dollars and average net income (after taxes)
of less than two million dollars.
SBA 7A Loans
This program will finance either working capital or fixed assets. The program provides a conventional lending institution with a loan guarantee. Interest rates and loan terms are established by the lender.
Revolving Loans Funds
Tuscola County boasts a revolving loan fund to be used for gap financing. The funds offer very competitive interest rates and
terms for eligible fixed asset and working capital projects.
Industrial Tax Abatement
Tax abatements are available for manufacturing firms making a capital investment in real or personal property. Companies are eligible
for the exemption even if they are renting a facility, provided they
are responsible for the taxes. A 50% abatement on ad valorem taxes
may be granted for new construction and purchase of equipment for
up to twelve years. This is granted in exchange for jobs created by the firm.
Industrial Revenue Bonds
Industrial Revenue Bond financing is available through local Economic
Development Corporations. The economic development team members
can actively assist in finding a purchaser for the bonds. Interest rates can be estimated at 80% of prime.
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