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Turning Innovation Into Jobs: SBA licenses first Impact Investment Fund partner

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Turning Innovation Into Jobs: SBA licenses first Impact Investment Fund partner

By Karen Mills, Former SBA Administrator
Published: July 26, 2011 Updated: July 29, 2011

<p>Startups and &ldquo;high-growth&rdquo; small businesses are responsible for the lion&rsquo;s share of net new job creation in the U.S. each year.&nbsp; That&rsquo;s a key reason that we launched an Administration-wide effort called Startup America earlier this year.</p><p>As a critical part of that, SBA made a commitment to invest up to $1 billion in underserved communities and emerging sectors over the next 5 years.</p><p>Today, <a href="http://www.sba.gov/content/sba-licenses-first-impact-investment-fund-mic... were delighted to announce the first public-private partnership of this Impact Investment Fund</a>.&nbsp; This first effort will focus on growing businesses in Michigan.</p><p><em>Why Michigan?</em></p><p>First, the need is there.&nbsp; Unemployment is high in Michigan, with over 90% of counties in economic distress as defined by the Commerce Department. &nbsp;It&rsquo;s an economy in transition.</p><p>Second, the opportunity is there.&nbsp; Michigan has one of the highest engineers-per-capita of any state. &nbsp;It also has a well-trained workforce with great universities. Many high-growth firms in Michigan simply need more capital to grow, scale up, and hire.</p><p>We also saw a number of key players who shared a vision for greater entrepreneurship and growth in Michigan, including experienced investors who already had a track record of investing in small businesses across the state.</p><p>Through this new partnership with Michigan Growth Capital Partners and Michigan-based Dow Chemical Company, we can leverage even more money into Michigan&rsquo;s small businesses &ndash; up to $130 million, with up to $80 million coming from SBA.&nbsp; And, importantly, this SBA program is subsidy-neutral, so we can do it at no cost to taxpayers.</p><p>At a time when even the most promising small businesses face challenges getting access to capital, the Impact Investment Fund is a great example of a public-private partnership that is stepping in to meet a critical need.&nbsp; We look forward to announcing more partners in the future in other regions and sectors.&nbsp;</p><p>Through Startup America and critical efforts like the Impact Investment Fund, we will continue to accelerate entrepreneurship and turn innovation into jobs.&nbsp; Find out <a href="http://www.sba.gov/content/impact-investment-initiative">more about this effort here.</a></p>

About the Author:

Karen Mills

Former SBA Administrator

Karen Gordon Mills is the Former Administrator of the U.S. Small Business Administration. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.

Comments:

I had no idea the unemployment rate was so high in Michigan.
I have read your site it is very helpful for me. I want to say thanks to you. I have bookmark your site for future updates. Keep up the good work!
It is good news that small businesses are responsible for creation of new jobs. I live in Europe and in my country this is not the case. Most small businesses are run by 1 person, sometimes 2 if you coun't a family member.
Thanks Karen Gordon Mills.. for wonderfull post its very great initiative take by Start Up Business America that to in michegon is well foresight move .. hope it helps to produce more enterprenuers .
As a business owner, I can appreciate subsidy-neutral aide to small businesses. More of these types of programs should be available. Thank you
As an engineering student myself I'm thrilled to see this kind of situations. Of course Michigan has a great number of talented people, is just sad to see there're not enough opportunities for every student with a degree. Partnerships are always welcome, and could mean a great relief for some professionals in the industry.
I had no idea the unemployment rate was so high in Michigan.
Good one. There're still so small amout of any kid of supporting programs for small companies. that's a bad thing. Small companies are paying relativley big taxes. ...but still what can we do?
As a business owner, I can appreciate subsidy-neutral aide to small businesses. More of these types of programs should be available. Thank you
It is good news that small businesses are responsible for creation of new jobs. I live in Europe and in my country this is not the case. Most small businesses are run by 1 person, sometimes 2 if you coun't a family member. I hope this will change in the nearest future. That was by the way some interesting facts Karen, I have learned a couple of new things from this short but at the same time informative article.

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