EDITOR’S NOTE: This is the latest in our continuing series of stories about what’s working well in local communities across Michigan.
By Jo Mathis
In June, the Zinn Family Bakery opened in a small storefront on Harrison;s First Street.
Without a loan from the Small Business Initiative in Clare County (SBIC), opening day would have been … “Maybe two to three years from now,” said David Zinn, who owns the bakery with his brother, Jeff. “We needed this.”
Convinced that a healthy economy depends on the success of small businesses, Clare County officials have begun two new initiatives to help budding entrepreneurs.
The SBIC is involved in a number of projects to encourage entrepreneurs, including a revolving loan fund for small business startups and expansions. And Bucks for Business is a contest that gives $1,000 checks to Harrison area residents hoping to expand or start a new business.
“In economic development, we do business attraction and retention and expansion and retention,” said Kathy Methner, director of business development at the Mt. Pleasant-based Middle Michigan Development Corporation, which generates economic development in Isabella and Clare counties. “But entrepreneurship has been a focus of ours as well because we think that’s going to be savior of our economy in Michigan – helping entrepreneurs develop businesses and take them to market.”
Zinn said he and his brother tried for a bank loan two years ago, but didn’t have the required down payment. Because they were the first to get a loan from the revolving loan fund, there were some kinks to work out.
“It’s running a whole lot smoother for people now,” he said. “I think it’s a great program for a small community.”
The fund’s $230,000 was collected over the past three years when Clare County’s housing department secured USDA Rural Development grants, which were matched with smaller grants from the county.
A revolving loan fund committee evaluates each project before accepting or rejecting it. So far, it has loaned money at the prime rate to a handful of companies.
“Oftentimes these projects are more high risk than banks want to deal with,” said Methner. “And we think there are good projects out there that need funding that banks won’t finance. Not that they’re a credit risk. But banks often require a lot of equity and collateral. And we do, too. But it’s not quite as stringent as a bank loan.”
Now in its second year, Bucks for Business is a Harrison-based contest that gives $1,000 twice a year to an entrepreneur. Bucks for Business is funded by the Harrison Area Economic Development Corporation and the Clare County Enterprise Community.
“We’re trying to give people a leg up on getting a business started in the Harrison area,” said Tracey Beadle, city clerk and administer for the city of Harrison. “Certainly we know it costs more than $1,000 to start a business, but sometimes $1,000 can be the application you need, or lay the groundwork. Whatever.”
Anyone in the 48625 zip code with a new business idea can fill out an application, then make a brief presentation to the board, which picks the winner. All applicants are offered a chance to meet with experts at the Michigan Technical Education Center (M-TEC) at Mid-Michigan Community College.
“With the way the economy is today, we can’t rely on manufacturing or the industries we have,” said Beadle. “Small business is another way people can thrive in this area. They can find their niche and make it grow from there.”
