With a vacant, graffiti-covered building in the Eastern Market district as a backdrop, Michigan's two senators -- Debbie Stabenow and Gary Peters -- touted legislation today they introduced that would send millions in federal funding to Michigan to benefit small businesses and create jobs.
The senators, both Democrats, are seeking to reauthorize the State Small Business Credit Initiative that has funded efforts through the Michigan Economic Development Corp., and other state-lending programs that leverage private loans, to provide access to capital for small business owners, such as Tammy Tedesco.
Tedesco, the owner of Edibles Rex, expects to expand her 100-employee catering company by using a $1.8 million small business loan she got through the federal program to opening a new cooperative kitchen in the 65,000 square-foot building off Mack Avenue and hire six more workers.
"Without the program, we wouldn't get the loan," she said.
Stabenow and Peters joined Tedesco to urge support for the legislation, dubbed the Small Business Access to Capital Act of 2015. They said it would provide an additional $500 million to states based on similar formulas used in the Small Business Jobs Act, passed in 2010.
Of that amount, Michigan would receive more than $26 million in new formula funding — more than every state except Florida and California.
The bill also would provide an additional $1 billion for states to compete for to help businesses.
"This is another shout out to small businesses and Detroit and Michigan -- and entrepreneurs who take and run with it and create jobs," Stabenow said. "For every dollar in federal funds that we put in nationally, there has been $7.36 in private funds that are available."
Peters said that the new legislation reinforces existing programs.
"It is always great when you announce new legislation, but even better when you are able to announce legislation that's built on success," he said.