Ann Arbor SPARK is one of 27 organizations in Michigan receiving funds from the Michigan Economic Development Corporation to serve as entrepreneurial hubs, providing comprehensive resources and support to small businesses in the state.
Ann Arbor SPARK, which provides economic development leadership to Livingston and Washtenaw counties, is receiving $3,426,316, the largest amount granted.
The Small Business Support Hubs (SBSH) program received approval by the Michigan Strategic Fund in June, following the passage of the $75 million Small Business Smart Zones and Business Accelerators initiative by the Michigan legislature in February. The program is funded by a one-time appropriation using American Rescue Plan Act (ARPA) dollars to create and operate programs to support small businesses disproportionately impacted by COVID-19.
“Small businesses are the backbone of Michigan’s economy, and this investment to support their growth from President Biden’s American Rescue Plan will build on Michigan’s economic momentum,” said Gov. Gretchen Whitmer in a release announcing the recipients. “These 27 entrepreneurial hubs across the state will shore up our small business ecosystem, providing economically disadvantaged entrepreneurs and small businesses with the support they need to keep growing and expanding right here in Michigan.”
The program generated a high level of interest and demand, with a Joint Evaluation Committee reviewing over 80 applications representing a total of $275 million in funding requested. The 27 organizations selected will receive an average grant size of $2.7 million. While state law requires 20-percent of the businesses served by SBSH program to be minority-owned, an average of over 50-percent minority-owned businesses will be served among the applications selected.
Programming across the 27 hubs is designed to meet regional needs as well as economic competitiveness measures, such as resources for strategic sectors including ClimateTech and Advanced Manufacturing. The hubs will also offer targeted support to family-owned and rural businesses to drive resiliency in a rapidly evolving economic climate.
Resources available from the hubs will include one-on-one coaching, cohort-based learning and accelerators, mentor matchmaking, pitch competitions, networking events, access to capital, partner referrals, and statewide resource navigation.
Grantees by Region
• Region 1, the grantees are Michigan Tech Enterprise Corporation ($3,426,316), Lake Superior Community Partnership, Inc ($3,426,315), and Chippewa County Economic Development Corporation ($1,426,315).
• Region 2, the grantee is Traverse City Center for Entrepreneurship ($3,300,000).
• Region 3, the grantees are Target Alpena Development Corporation ($2,149,239) and Otsego County Economic Alliance, Inc ($1,136,859).
• Region 4, the grantees are Muskegon Innovation Hub at Grand Valley State University ($1,796,721), Start Garden Inc ($3,426,316), and Grand Rapids Nehemiah Project ($2,426,316).
• Region 5, the grantee is Central Michigan University Research Corporation ($3,426,316).
• Region 6, the grantees are Flint & Genesee Chamber Foundation ($2,366,356) and Economic Development Alliance of St. Clair County ($2,500,792).
• Region 7, the grantee is Lansing Economic Area Partnership ($3,426,316).
• Region 8, the grantees are Battle Creek Unlimited, Inc ($3,300,000) and Can-Do Kalamazoo dba Can-Do Kitchen ($1,926,315).
• Region 9, the grantees are Ann Arbor SPARK ($3,426,316) and Lean Rocket Lab ($1,400,000).
• Region 10, the grantees are Operations School ($2,815,115), Tejara ($3,426,316), Detroit Economic Growth Association ($3,426,316), Wayne State University Research and Technology Park in the City of Detroit ($3,426,316) and Velocity SmartZone ($1,800,000).
Multi-Region grantees are West Michigan Hispanic Chamber of Commerce ($2,500,000) and ProsperUs Detroit Micro Lending ($2,000,000), while state-wide grantees are Lawrence Technology University Centrepolis Accelerator ($3,426,316), Small Business Association of Michigan Foundation ($3,426,316), and Michigan Founders Fund ($2,926,315).
Ann Arbor SPARK was also recently one of four organizations receiving awards from the Michigan Innovate Capital Fund to continue growing a vibrant and robust entrepreneurial ecosystem in Michigan. Ann Arbor received $5 million.
Ann Arbor SPARK has extensive experience managing statewide funds on behalf of the State of Michigan, including the original Michigan Pre-Seed Capital Fund and the Michigan Angel Fund. Over the last 16 years, Ann Arbor SPARK has invested over $30 million in more than 250 early-stage Michigan-based technology companies.
As part of the Michigan Innovate Capital Fund program, Ann Arbor SPARK will receive that $5 million over a 2.5-year period, co-investing at least $1.5 million alongside the Fund into companies with a tech focus.
