It is for the best interests of a business to apply for a Michigan Tax ID to identify the business. Obtaining a Tax ID is one of the key responsibilities that a business has to consider during the planning process because it will be required during the application for business license, bank checking account and financing.
In Michigan, there are many opportunities for small businesses to grow. Grow Michigan, a loan program, continues to provide funding for small businesses. This week, Grow Michigan, LLC announced a 2-year extension of the $51 million fund that it invested into 30 transactions since 2013. The board managers of Grow Michigan that includes Traverse Connect CEO Douglas Luciani and Michigan Strategic Fund gave their approval for the extension of the fund.
The extension of funding is welcome news for small businesses in Michigan. They are excited about the opportunities provided for growth and expansion. According to a press release, Grow Michigan reported that the leveraged capital investment of $353.2 million has managed to facilitate the creation of almost 3,000 employment opportunities.
The goal of Grow Michigan is to invest solely on Michigan-based businesses so that it can be used to create jobs. Grow Michigan is working with financial institutions in the state to act as a second lien lender. The loans are provided to businesses that lack liquidity and capital required for typical bank lending transactions.
According to Patrick O’Keefe, CEO of Growth Michigan, funding is capped at $5 million; however, most loans are between $1.5 million and $2.5 million with a repayment term of 5 years. Out of the 30 loans that the organization provided, more than a half has already been paid back before the 5-year term. Two companies in the Grand Traverse area were provided with $1 million loans each and both have been successfully paid.
Profitability is certainly the goal of every business but before you plan for any undertaking, it is important to obtain Michigan Tax ID because it is useful for many government and banking transactions. If the product or service offered involves taxes in any way, the Tax ID will be required during the payment of taxes.