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SENATE BILL NO. 1009
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending section 9 (MCL 125.2009), as amended by 2024 PA 117,
and by adding chapter 8F.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9. (1) The fund shall transmit to each member of the 1
legislature, the governor, the clerk of the house of 2
representatives, the secretary of the senate, and the senate and 3
house fiscal agencies annually a report of its activities. The 4
report must be transmitted not later than April 10 of each year for 5
May 21, 2026, Introduced by Senator ANTHONY and referred to Committee on Appropriations.
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activities in the immediately preceding state fiscal year. The 1
report must not include information exempt from disclosure under 2
section 5. The report must include, but is not limited to, all of 3
the following for each program operated under this act: 4
(a) A list of entities that received financial assistance. 5
(b) The type of project or product being financed. 6
(c) The amount and type of financial assistance. 7
(d) For each separate form of financial assistance, all of the 8
following: 9
(i) The number of new jobs committed or projected when the 10
financial assistance was applied for. 11
(ii) The number of retained jobs committed or projected when 12
the financial assistance was applied for. 13
(iii) The actual number of new jobs created that are not 14
temporary employees. 15
(iv) The actual number of retained jobs that are not temporary 16
employees. 17
(v) The average annual salary of the new jobs created that are 18
not temporary employees. 19
(vi) The average annual salary of the retained jobs that are 20
not temporary employees. 21
(e) The duration of the financial assistance. 22
(f) The amount of financial support other than state 23
resources. 24
(g) Money or other revenue or property returned to the fund, 25
including any repayments through a clawback provision in the 26
agreement. 27
(h) The status of all loans of the fund. 28
(i) A list of all entities that are in bankruptcy, of which 29
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the fund has received actual notice, filed by a direct recipient of 1
an active single incentive of not less than $500,000.00. In 2
addition, the fund shall, within 120 days after the fund receives 3
notice, provide a report of the notice of bankruptcy on its website 4
and forward the report to each of the following: 5
(i) The senate majority leader and the senate minority leader. 6
(ii) The speaker of the house and the house minority leader. 7
(iii) The members of the house commerce and tourism 8
committee.senate and house of representatives standing committees 9
that have jurisdiction over matters relating to economic 10
development. 11
(iv) The members of the house appropriations subcommittee on 12
general government. 13
(v) The members of the senate economic and small business 14
development committee. 15
(iv) (vi) The members of the senate and house of representatives 16
appropriations subcommittee on general government.subcommittees 17
that have jurisdiction over the fund's budget. 18
(j) A summary of the approximate administrative costs used to 19
administer the programs and activities authorized under this act. 20
(k) Any other information as required by this section. 21
(2) The auditor general or a certified public accountant 22
appointed by the auditor general annually shall conduct and remit 23
to the legislature an audit of the fund and, in the conduct of the 24
audit, shall have access to all records of the fund at any time, 25
whether or not confidential. Each audit required by this section 26
must include a determination of whether the fund is likely to be 27
able to continue to meet its obligations, including a report on the 28
status of outstanding loans and agreements made by the fund. 29
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(3) The fund shall also transmit the audit described in 1
subsection (2) to the chairperson and minority vice-chairperson of 2
the senate appropriations subcommittee on general government and 3
the house of representatives appropriations subcommittee on general 4
government. subcommittees that have jurisdiction over the fund's 5
budget. The fund shall make the report and audit available to the 6
public on the fund's website. 7
(4) The report described in subsection (1) must also contain 8
all of the following that are related to a 21st century investment 9
made by the fund board under chapter 8A: 10
(a) The amount of qualified venture capital fund investments, 11
qualified mezzanine fund investments, and qualified private equity 12
fund investments under management in this state, including year-to-13
year growth. 14
(b) The value of loan enhancement program investments, 15
qualified private equity fund investments, qualified mezzanine fund 16
investments, and qualified venture capital investments in qualified 17
businesses, including year-to-year growth. 18
(c) A statement of the amount of money in each loan reserve 19
fund established under the small business capital access program 20
required under chapter 8A. 21
(5) The report described in subsection (1) must also include, 22
but is not limited to, all of the following for all actions under 23
section 88r: 24
(a) The total actual amount of qualified investment attracted 25
under section 88r as reported to the fund. 26
(b) The total actual number of new jobs created under section 27
88r as reported to the fund. 28
(c) The actual amount of the grant, loan, or other economic 29
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assistance made under section 88r separately for each qualified 1
business verified by the fund. 2
(d) For each qualified business, whether it is a new business, 3
whether it is an expansion of an existing business, or whether it 4
relocated from outside of this state. 5
(e) An evaluation of the aggregate return on investment that 6
this state realizes on the actual qualified new jobs and actual 7
qualified investment made by qualified businesses. 8
(6) The report described in subsection (1) must also include, 9
but is not limited to, all of the following for all actions under 10
chapter 8B: 11
(a) For tourism promotion efforts, all of the following: 12
(i) An itemized list, by market, of how much was spent, types 13
of media purchased, and target of the tourism promotion campaign. 14
(ii) The return on investment analysis that utilizes existing 15
baseline data and compares results with prior outcome evaluations 16
funded by Travel Michigan. 17
(b) For business development efforts, all of the following: 18
(i) An itemized list, by market, of how much was spent, types 19
of media purchased, and target of the business promotion campaign. 20
(ii) A performance analysis that compares the program or 21
campaign objectives and outcome of the campaign or program. 22
(7) The report described in subsection (1) must also include, 23
but is not limited to, all of the following for all actions under 24
section 90d: 25
(a) The total actual amount of private investment attracted 26
under section 90d as reported to the fund. 27
(b) The actual amount of the community revitalization 28
incentives made under chapter 8C separately for each project. 29
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(c) The total actual amount of square footage revitalized or 1
added for each project approved under section 90d as reported to 2
the fund. When reporting square footage, the person must report the 3
square footage by category, including, but not limited to, 4
commercial, residential, or retail. 5
(d) The aggregate increase in taxable value of all property 6
subject to a written agreement under chapter 8C when established 7
and recorded by the local units of government and as reported to 8
the fund. 9
(e) The total actual number of residential units revitalized 10
or added for each project approved under section 90d as reported to 11
the fund. 12
(f) Each project that received a community revitalization 13
incentive outside the fund program standards and guidelines and why 14
the variance was given. 15
(8) Beginning on and after January 1, 2012, on a monthly basis 16
the fund shall provide exact copies of all information regarding 17
all actions under chapter 8C that is provided to board members of 18
the fund for the purpose of monthly board meetings, subject to 19
confidentiality under section 5, to each of the following and post 20
that information on the fund's website: 21
(a) The chairperson and minority vice-chairperson of the house 22
commerce and tourism committee.senate and house of representatives 23
standing committees that have jurisdiction over matters relating to 24
economic development. 25
(b) The chairperson and minority vice-chairperson of the house 26
appropriations subcommittee on general government.senate and house 27
of representatives appropriations subcommittees that have 28
jurisdiction over the fund's budget. 29
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(c) The chairperson and minority vice-chairperson of the 1
senate economic and small business development committee. 2
(d) The chairperson and minority vice-chairperson of the 3
senate appropriations subcommittee on general government. 4
(9) The report described in subsection (1) must also include a 5
summary of the approximate administrative costs used to administer 6
the programs and activities authorized in the following sections: 7
(a) Section 88b. 8
(b) Section 88h. 9
(c) Section 90b. 10
(10) The report described in subsection (1) must also include, 11
but is not limited to, all of the following for all actions for 12
business incubators approved by the fund after January 14, 2015: 13
(a) The number of new jobs created and projected new job 14
growth by current clients of the business incubator. 15
(b) Amounts of other funds leveraged by current clients of the 16
business incubator. 17
(c) Increases in revenue for current clients of the business 18
incubator. 19
(11) The report described in subsection (1) must also include 20
the actual repayments received by the fund for failure to comply 21
with clawback provisions of the written agreement under all of the 22
following: 23
(a) Section 78. 24
(b) Section 88d. 25
(c) Section 88k. 26
(d) Section 88q. 27
(e) Section 88r. 28
(f) Section 90b. 29
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(12) Beginning on July 1, 2015, the fund shall post on the 1
fund's website a list of each contract, agreement, or other written 2
loan or grant documentation for financial assistance under sections 3
88r and 90b that the fund entered into or modified in the 4
immediately preceding fiscal year. 5
(13) Beginning on July 1, 2015, the fund shall post and update 6
periodically all of the following on its website for all loans made 7
under sections 88r and 90b: 8
(a) A description of the project for which the loan was made. 9
(b) The total amount of the loan. 10
(c) Whether payments on the loan balance are current or 11
delinquent. 12
(d) The interest rate of the loan. 13
(14) Beginning July 1, 2015, the report described in 14
subsection (1) must also contain all of the following for each 15
program that provides financial assistance under this act that 16
requires a site visit: 17
(a) A copy of the site visit guidelines for that program. 18
(b) The number of site visits conducted under that program. 19
(c) The chief compliance officer shall review and evaluate 20
compliance with the site visit guidelines. 21
(15) The fund shall post on its website and update 22
periodically all of the information described in subsection (14). 23
(16) The report described in subsection (1) must also include, 24
but is not limited to, all of the following for all written 25
agreements related to the good jobs for Michigan program created 26
under chapter 8D: 27
(a) The name of the authorized business. 28
(b) The number of certified new jobs required to be 29
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maintained. 1
(c) The amount and duration of the withholding tax capture 2
revenues. 3
(17) The report described in subsection (1) must also include 4
the activities of the critical industry program described in 5
section 88s. 6
(18) The report described in subsection (1) must also include 7
the activities of the Michigan strategic site readiness program 8
described in section 88t. 9
(19) The report described in subsection (1) must also include 10
the activities of the small business program under chapter 8F, 11
including, but not limited to, all of the following information: 12
(a) A list of eligible applicants that received a grant under 13
the small business program. 14
(b) For each person listed under subdivision (a), all of the 15
following information: 16
(i) The amount of the grant. 17
(ii) A description of the activities funded by the grant. 18
(iii) The number of small businesses served. 19
(c) The number of small business jobs created as a result of 20
the small business program. 21
(20) (19) The fund shall cooperate with the department of 22
treasury and assist in preparing the report required under section 23
718 of the income tax act of 1967, 1967 PA 281, MCL 206.718. 24
(21) (20) As used in this section, "financial assistance" 25
means grants, loans, other economic assistance, and any other 26
incentives or assistance under this act. 27
CHAPTER 8F 28
Sec. 90t. As used in this chapter: 29
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(a) "Community development financial institution" means that 1
term as defined in 12 USC 4702. 2
(b) "Eligible applicant" means any of the following: 3
(i) A community development financial institution. 4
(ii) A nonprofit organization whose mission includes providing 5
support for small businesses and entrepreneurs. 6
(iii) A local economic development corporation. 7
(iv) A regional planning commission. 8
(v) An institution of higher education. 9
(c) "Institution of higher education" means that term as 10
defined in section 88a. 11
(d) "Program" means the small business program created under 12
section 90u. 13
(e) "Small business" means a business concern incorporated or 14
doing business in this state, including the affiliates of the 15
business concern, that is independently owned and operated and that 16
employs fewer than 500 full-time employees. 17
(f) "Small business fund" means the small business fund 18
created by section 90v. 19
(g) "Technical assistance" includes, but is not limited to, 20
guidance regarding any of the following: 21
(i) Licensing requirements. 22
(ii) Compliance with federal, state, and local laws, rules, and 23
regulations. 24
(iii) Business organization and planning. 25
(iv) Capital access. 26
(v) Financial management. 27
(vi) Marketing. 28
(vii) Operating a business. 29
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Sec. 90u. (1) The fund shall create the small business program 1
to award grants to eligible applicants to facilitate the creation, 2
growth, and retention of small businesses in this state. The fund 3
shall use money transferred from the small business fund or money 4
appropriated to the program to make the grants. The program shall 5
be operated and administered by the authorized officers, employees, 6
and agents of the fund, including the MEDC and its employees. 7
(2) The fund shall develop a detailed application, approval, 8
and compliance process that is published and available on the 9
website of the fund or the MEDC. The detailed application, 10
approval, and compliance process must, at a minimum, provide for 11
all of the following: 12
(a) An eligible applicant may apply for a grant under the 13
program. 14
(b) The eligible applicant must use the grant to do 1 or more 15
of the following: 16
(i) Provide loans to small businesses. 17
(ii) Provide grants to small businesses. 18
(iii) Make investments in small businesses. 19
(iv) Provide technical assistance to small businesses. 20
(3) Before approving an application under this section, the 21
fund shall consider and document, at a minimum, all of the 22
following criteria: 23
(a) That the applicant qualifies as an eligible applicant. 24
(b) Whether the applicant is financially sound and has a 25
reasonable likelihood of remaining financially sound over time. 26
(c) Whether the applicant has a demonstrated history of 27
positively impacting small businesses. 28
(d) The region of this state in which the applicant proposes 29
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to provide services funded by the grant and the need for the 1
proposed services in that region. 2
(e) The extent to which the issuance of the grant will 3
increase entrepreneurship and small business opportunities in this 4
state. 5
(f) The extent to which the grant will support 6
entrepreneurship and small business opportunities in growing 7
industries. 8
(g) Whether the services to be provided with the grant money 9
will serve 1 or more stages of small businesses, from early stage 10
to established small businesses. 11
(4) If the fund determines, after the considerations under 12
subsection (3), to provide a grant to an eligible applicant under 13
the loan program, the fund shall enter into a written agreement 14
with the eligible applicant that includes in a clear and concise 15
manner all of the terms and conditions related to the grant, as 16
determined and documented by the fund board, including, but not 17
limited to, all of the following: 18
(a) The amount of the grant. 19
(b) The purposes for which the grant may be used, which must 20
comply with subsection (2)(b). 21
(c) A requirement that the applicant repay the grant if the 22
applicant fails to comply with the written agreement. 23
(d) An audit provision that requires the fund to verify that 24
the terms and conditions for the grant have been met. 25
(e) A requirement that the applicant provide any information 26
necessary for the fund to comply with the reporting requirement in 27
section 9(19). 28
Sec. 90v. (1) The small business fund is created in the state 29
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treasury. 1
(2) The state treasurer shall deposit money and other assets 2
received under section 90v or from any other source in the small 3
business fund. The state treasurer shall direct the investment of 4
money in the fund and credit interest and earnings from the 5
investments to small business fund. 6
(3) Money in the small business fund at the close of the 7
fiscal year remains in the small business fund and does not lapse 8
to the general fund. 9
(4) The fund is the administrator of the small business fund 10
for audits of the small business fund. 11
(5) The fund shall expend money from the small business fund, 12
on appropriation, only for 1 or more of the following purposes: 13
(a) Administering the program. 14
(b) Providing grants to eligible applicants under the program. 15
Sec. 90w. In exercising its powers and duties under this act 16
or another law of this state, the fund shall endeavor to prioritize 17
and support the development of small businesses in this state. 18