The Bay County Growth Alliance

Financing The Future

BAY COUNTY GROWTH ALLIANCE, INC. Welcome to the Bay County Growth Alliance, Inc (BCGA) Web Site! BCGA is a Michigan non-profit economic development corporation. Chartered in 1972 as Forward Bay County, Inc., the Growth Alliance is one of Michigan’s longest serving economic development organizations. BCGA’s mission is to promote economic growth by offering financial assistance and support services to the business community and non-profit sector. Service area Our primary service area is Bay County, Michigan; however, we will consider loans and occasional angel investments in the Great Lakes Bay Region (Midland, Bay and Saginaw Counties, Michigan). Financing and services offered Mezzanine debt up to $250,000 Equity investments Coaching and counseling Community liaison Mezzanine funds help companies step up BCGA meets the need for growth capital that can supplement financing available from a senior lender for promising firms that for various reasons, do not qualify for such loans from conventional lenders. Use of loan funds, terms, and guarantees Loan funds may be used for the following: working capital, machinery and equipment, acquisition of land and buildings, new construction, façade and building renovation, landscape and property improvements. Other uses may be for acquisitions, restructuring, startups, and turnarounds. Durations vary according to the use of funds. A loan used for working capital, for instance, may range from 3 to 5 years, while loans for equipment are up to 7 years and real estate loans may last 15 years. Floating rates with some form of enhancement of the interest rate such as royalty on sales during the term of the loan or an equity option with a put; the success of the enhancement is tied to the success of the borrower. BCGA loans should not be perceived as a free or easy source of financing. Loans shall be guaranteed by the business and personally by the borrower. In addition, the borrower shall agree to subordinate all officer debt and defer monthly payments to all officers to the BCGA loan. Referral to community resources Bay Future, Inc. www.bayfuture.com o Site Selection o Incentive packaging Small Business Technology Development Center www.misbtdc.org/region5 o Business Plans o On going business development Bay County www.baycounty-mi.org o Demographics o Recreation o Health and Community