Charter One Bank, Governor Granholm Announced Unprecedented Partnership to Spur Job Creation
Charter One’s Job Creation Loan Program, a $200 million low-interest fund, designed to create 5,000 new jobs in Michigan
DETROIT – Governor Jennifer M. Granholm and Charter One Bank President & CEO Sandra E. Pierce announced an unprecedented new partnership in which Charter One will offer $200 million in loan funds at a very low interest rate to companies that commit to creating or expanding jobs in Michigan.
The Charter One Job Creation Loan Program is the first of its kind in Michigan and is scheduled to be in operation over a two-year period. The new loan pool requires borrowers to create a minimum of one full-time job for every $40,000 borrowed at the fixed interest rate of 4.99 percent (2.51 percent below today’s prime rate) for the life of the loan. After 12 months, the offering rate for the program may be reset and would be available for any loan booked in the second year of the program.
The term of the loan will require that the specified jobs be created within three years after the funds are borrowed. The minimum loan size is $1 million, and the maximum is $10 million.
The Michigan Economic Development Corporation (MEDC) will market the unique program to companies already in Michigan and those businesses considering relocating to the state. The agency will also conduct annual audits to certify that borrowers fulfill job creation commitments. In addition, MEDC and Charter One will partner closely with the economic development arms of the city of Detroit and Wayne, Oakland and Macomb counties.
The loan program will be available to qualified borrowers starting immediately and will be serviced through Charter One offices located in twelve counties throughout Michigan, primarily Wayne, Oakland, and Macomb. Companies eligible for the program include any public or privately owned business in a broad array of industry sectors, including manufacturing, distribution centers, emerging sectors, and the 21st Century Jobs Fund competitive-edge technologies: life sciences; alternative energy; advanced automotive, manufacturing and materials; and homeland security and defense.
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