Next phase of statewide initiative aims to strengthen entrepreneurship, regional coordination, and job creation
LANSING, Mich. — The Michigan Strategic Fund (MSF) Board has approved nearly $11.3 million in state funding to expand the Michigan Economic Development Corporation’s (MEDC) Small Business Support Hubs (SBSH) initiative, advancing a statewide effort designed to help entrepreneurs launch, grow, and scale businesses across Michigan.
The new funding represents the next phase of a program launched in 2023 that has supported thousands of small businesses while strengthening local economic development ecosystems throughout the state.
Since its inception, the initiative has:
- Served more than 8,800 businesses
- Helped create or retain over 5,000 jobs
- Supported 2,000+ new business starts
- Generated more than $158 million in follow-on investment
- Awarded 750+ direct grants
- Delivered more than $3.8 million in direct investment to small businesses
State officials say the continued investment reflects Michigan’s broader economic strategy focused on entrepreneurship, innovation, and inclusive growth.
Strengthening Michigan’s Small Business Ecosystem
Governor Gretchen Whitmer said the program helps ensure entrepreneurs have access to resources needed to expand operations and create jobs within their communities.
“Small business owners and entrepreneurs play a vital role in Michigan’s economy,” Whitmer said. “This investment will help more businesses grow, create good-paying jobs, and build their future here in Michigan.”
The Small Business Support Hubs operate as regional resource centers that provide technical assistance, business counseling, access to capital, and ecosystem coordination tailored to local market needs.
MEDC CEO and MSF Board Chair Quentin Messer, Jr. said the initiative aligns with the state’s “Make it in Michigan” economic development strategy, which emphasizes supporting people, strengthening communities, and enabling new business growth.
Funding Allocation and Program Structure
Of the newly approved funding:
- Approximately $8 million will support hub operations, programming, and regional coordination efforts.
- About $3.3 million will be directed toward limited direct assistance awards for eligible small businesses.
The funding consists entirely of state-appropriated, non-federal dollars included in Michigan’s FY2026 budget.
Awards to participating hubs will initially be issued for a one-year term, with the option for annual extensions of up to two additional years based on performance outcomes and available funding.
The application window for participating organizations is scheduled to run from April 1 through June 1, 2026.
Driving Regional and Community-Based Economic Development
According to MEDC officials, the Small Business Support Hubs model has helped strengthen regional collaboration by aligning local economic development organizations, nonprofit partners, and entrepreneurial support programs under a coordinated statewide framework.
Jay Williams, MEDC Director of Small Business Services, said the initiative has become an important catalyst for community-driven economic growth.
“Our Small Business Support Hubs have increased regional coordination and expanded access to resources for entrepreneurs across Michigan,” Williams said. “We look forward to continuing to support innovation and business growth throughout the state.”
The hubs are designed to reduce barriers faced by entrepreneurs — particularly startups and small firms — by connecting businesses with mentorship, training programs, and funding opportunities that might otherwise be difficult to access.
Supporting Long-Term Economic Growth
State leaders view the initiative as part of a broader strategy to diversify Michigan’s economy by encouraging small business formation alongside large-scale corporate investment projects.
By strengthening local entrepreneurial ecosystems, officials aim to foster sustainable job creation, stimulate innovation, and enhance economic resilience in both urban and rural communities.
All funding agreements will operate under performance-based contracts, with reimbursements issued based on verified eligible expenditures and business commitments. MEDC will continue to provide annual public reporting to the Michigan Legislature on program outcomes and performance metrics.
