Michigan Business Development Program; Definitions - Mich. Comp. Laws Section 125.2088r
(1) The fund shall create and operate the Michigan business development program to provide grants, loans, and other economic assistance to qualified businesses that make qualified investments in this state or provide qualified new jobs in this state.
(2) The Michigan business development program shall provide for all of the following:
(a) Grants, loans, and other economic assistance to assist qualified businesses in making qualified investments and providing new jobs in this state, with preference given to qualified businesses that need additional assistance for deal-closing and for second stage company gap financing.
(b) A detailed application, approval, and compliance process published and available on the fund's website. The detailed application, approval, and compliance process shall, at a minimum, contain the following:
(i) A qualified business may apply for a grant, loan, or other economic assistance in a form and manner determined by the fund.
(ii) After receipt of an application, the fund may enter into a written agreement with the qualified business if the qualified business agrees to make certain qualified investments or create a certain number of new jobs in this state.
(iii) The written agreement shall provide in a clear and concise manner all of the conditions imposed, including specific time frames, on the qualified business to receive a grant, loan, or other economic assistance under this section.
(iv) The written agreement shall provide for a repayment provision of any grants, loans, or other economic assistance if the qualified business fails to comply with the provisions of the written agreement.
(v) The written agreement shall provide for an audit provision that requires the fund to verify that established milestones for the project have been met.
(c) In any fiscal year, a qualified business shall not receive more than $10,000,000.00 for a project funded under this section.
(3) The fund shall not enter into a written agreement with a qualified business unless all of the following are met:
(a) The municipality makes a staff, financial, or economic commitment to the project as determined by the fund.
(b) The qualified business provides a business plan or demonstrates the need for the grant, loan, or other economic assistance.
(c) The qualified business agrees to provide the data described in the written agreement necessary for the fund to report to the legislature under this act.
(4) The fund shall post on its website or post on the website of the Michigan economic development corporation the name and location of each qualified business that received a grant, loan, or other economic assistance awarded under this section and the amount of the grant, loan, or other economic assistance.
(5) The fund, with assistance from the Michigan economic development corporation and the office of the chief compliance officer, shall establish policies and procedures to conduct background checks on each qualified business applying for a grant, loan, or other economic assistance under this section.
(6) Beginning November 1, 2012 and each year thereafter, the fund shall report to each house of the legislature on the activities of the fund under this section that occurred in the previous fiscal year. The report shall be made available in an electronic format. The report shall include, but is not limited to, all of the following:
(a) The total proposed amount of qualified investment attracted under this section.
(b) The total actual amount of qualified investment attracted under this section as reported to the fund.
(c) The total committed number of new jobs created under this section.
(d) The total actual number of new jobs created under this section as reported to the fund.
(e) The total number of new written agreements.
(f) The amount of the grant, loan, or other economic assistance awarded under this section separately for each qualified business.
(g) The actual amount of the grant, loan, or other economic assistance made under this section separately for each qualified business verified by the fund.
(h) For each qualified business, whether it is a new business, whether it is an expansion of an existing business, or whether it relocated from outside of this state.
(i) An evaluation of the aggregate return on investment that this state realizes on the actual qualified new jobs and actual qualified investment made by qualified businesses.
(j) A report on the individuals hired by the qualified business that includes the number of individuals hired by the qualified business, their educational attainment, including, but not limited to, high school diploma or equivalent, higher education certificate or degree, or advanced degree or training, and the number of individuals hired by the qualified business who relocated to this state as reported to the fund.
(7) Beginning February 1, 2012 and not less than every 3 months thereafter, the fund shall post on its internet website the name and location of a qualified business that received approval of a grant, loan, or other economic assistance under this section in the immediately preceding 3-month period.
(8) The legislature finds and declares that funding authorized under this section to encourage diversification of the economy, to encourage capital investment in this state, and to promote the creation of qualified new jobs in this state is a public purpose and of paramount concern in the interest of the health, safety, and general welfare of the citizens of this state.
(9) As used in this section:
(a) "Other economic assistance" means any other form of assistance allowed under this act that is not a grant or a loan.
(b) "Qualified business" means a business that is located in or operates in this state or will locate or will operate in this state as determined by the fund.
(c) "Qualified investment" means investment in this state related to a project subject to a written agreement under this section.
(d) "Qualified new job" means a job performed by an individual who is a resident of this state whose Michigan income taxes are withheld by an employer, or an employee leasing company or professional employer organization on behalf of the employer, that is in excess of the number of jobs maintained by the qualified business maintained in this state prior to the expansion or location, as determined and verified by the fund.
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Last modified: March 17, 2013