Michigan Business Development Program

Michigan Business Development Program

Provides performance-based grants and loans for Michigan businesses creating net new jobs or capital investment.

The Michigan Business Development Program (MBDP) is a deal-driven economic assistance program administered by the Michigan Economic Development Corporation (MEDC) in cooperation with the Michigan Strategic Fund (MSF). It provides grants, loans, or other forms of economic assistance to businesses undertaking highly competitive projects in Michigan that create net new jobs or significant capital investment. The program is explicitly designed for expansion scenarios — retention-only projects and retail businesses are excluded. Both grant and loan instruments are available, with loan terms that can include below-market interest rates, extended repayment schedules, and forgivable provisions where appropriate.

MBDP has no published dollar caps or fixed application windows. Award size is negotiated deal-by-deal based on the scale of job creation and capital investment committed. All awards are performance-based: milestones and job creation targets are written into the grant or loan agreement, and repayment or clawback provisions apply if those targets are not met. New qualified jobs must either be held by Michigan residents (with Michigan income taxes withheld) or the company must certify that at least 75% of its workforce are Michigan residents. Local economic development organizations must also co-commit — through financial, staff, or other economic support — before MEDC will advance an application.

The process begins with a direct approach to either the applicant's local economic development office or the MEDC business development manager assigned to their geographic territory; there is no open online portal or request for proposals. The MSF Board approves all projects. FY2026 funding was allocated by the MSF in November 2025, confirming the program's continuity. Companies most likely to win are those with large-scale, transformational projects — advanced manufacturing, electrification, mobility technology, biotech, or materials — where job creation and capital investment projections are significant and verifiable.