Emerging Business

Emerging and start-up service, product, and device and technology businesses led by management teams that have relevant experience and that have successfully completed a training program through a qualified regional business incubator/accelerator will have access to micro-loans.

The loan recipients will receive business to business introductions and business mentoring from individuals with senior level expertise. Additionally, a network of sponsors and partners will assist in fostering demand and creating opportunities for companies that have received micro-loans through this program.

Loan applications must be submitted by a qualified business incubator/accelerator representing the company as its sponsor.

Transaction Range

$10,000–$50,000

Intended Purpose

Loans are considered to assist entrepreneurs in the start-up or scale-up of their businesses for the purpose of:

  • Equipment
  • Inventory
  • Limited Tenant Improvements
  • Corporate Formation and Legal Issues

Financing Types

Loans are meant to position the company for growth and to meet the criteria necessary to qualify for the next level of financing.

  • Senior Term Loans
  • Subordinated Term Loans (balloon)
  • Working Capital Lines of Credit
  • Convertible Notes with Warrants

General Loan Criteria

  • Borrower(s) must provide a written business plan that is sponsored and submitted by a qualified business incubator/accelerator to the First Step Fund. Requested information includes financial projections for the business being financed which demonstrates the viability of the business with detailed budgets and demonstrated repayment capacity. Plans must also include detailed marketing, financial and operations plans.
  • Borrower(s) must have a personal investment in the project (adequacy to be determined by the Investment Committee).
  • Completion of predevelopment/start-up work and project timeline (milestones)

Qualified Sponsors’ Training Programs

TechTown SmartStart

TechTown’s SmartStart program clients work closely with TechTown staff, and an array of business consultants and service providers to create and execute a detailed strategy for growth.

TechTown FastTrac

TechTown FastTrac program, in partnership with the Kauffman Foundation, provides services for entrepreneurs that range from business conception to growth and acceleration.

SPARK Entrepreneur Boot Camp

Ann Arbor SPARK Entrepreneur Boot Camp program is two intensive days of learning that compresses the usual three-month learning curve to move a business to the next level.

TechTown and SPARK Business Accelerators

TechTown and SPARK Business Accelerators speed up the development of start-ups in the region with a variety of valuable services designed to shorten the time required to attract capital, customers, or other resources.

TechTown and SPARK Regional Incubator Networks

TechTown and SPARK both have Regional Incubator Networks which are one of the many vital components in the business acceleration process. Both incubators provide physical space, essential services and business development guidance &ndash at lease rates that are affordable for start-up companies.

TechTown and SPARK Wet Lab Incubators

TechTown and SPARK Wet Lab Incubators boast state-of-the-art life science and biotech research space in a collaborative entrepreneurial environment with established tenant interaction and support.