Arctaris & MEDC Symposium Explores New Ideas For Developing Business, Creating Jobs in Detroit

At a one-day symposium hosted by Arctaris Capital Partners and the Michigan Economic Development Corporation to promote private public partnerships in Greater Detroit, U.S. Representative Gary Peters unveiled new efforts he will introduce in Washington to invest in small businesses and entrepreneurship.

Peters kicked off today’s symposium discussing the State Small Business Credit Initiative (SSBCI), a key measure in the Small Business Jobs Act he helped write, that has successfully improved small businesses’ access to credit and helped save and create thousands of jobs. Today, Peters solicited input from roundtable participants for the next phase of the program he is currently developing. Peters is considering new ways to expand SSBCI through possible block loans to states, a competitive “race-to-the-top” style pool of funding, or a revolving loan fund.

“In Michigan, I believe our small businesses must be part of the solution to building the future we envision for Detroit, for the greater Southeast Metro region, and for our state as a whole,”Peters said.“I am committed to finding ways that Washington can foster the kind of environment that helps spur innovation, entrepreneurship, and small business economic success. That’s why I am excited to be getting input from Michigan businesses and lenders today about the next phase of a successful program we can expand to invest in Michigan small businesses.”

“Today we have pinpointed ways in which Congress can help address market inefficiencies in Detroit,” Jonathan Tower, Arctaris Managing Partner said. “We thank Congressman Peters for his leadership and participation.”

SSBCI has helped small businesses create or save 53,000 jobs, including almost thousands of jobs in Michigan.  Over 500 loans have been made in Michigan, leveraging more than $370 million in private capital. Additionally, the SSBCI Sustainability Act of 2013 would authorize $1.5 billion in loans to be distributed by Treasury to states using same formula as the Small Business Jobs Act of 2010 and modeled on the SBA Small Business Investment Company (SBIC) program.

Arctaris Capital Partners, LLC has started a target $200 million investment fund to help established Michigan companies grow and add jobs. Arctaris Managing Partner Jonathan Tower first came to Detroit from Boston in 2009 and saw funding opportunities for economic development. The Michigan Economic Development Corporation, with funds from the federal SSBCI program, has provided nearly 20 percent of the funds of Arctaris' Michigan fund, as part of a public-private partnership that could serve as model for the nation.

Peters is an outspoken champion for Michigan small businesses in Washington. He helped create two successful small business programs, the State Small Business Credit Initiative (SSBCI) and the Small Business Lending Fund (SBLF), which have been credited with helping to leverage millions in private investment, spur small business growth and create thousands of jobs in Michigan. Most recently, he has been leading efforts to stop an unfair innovation tax on Michigan entrepreneurs, gathering support to petition the Office of Management to exempt the U.S. Patent Office from sequester cuts.