Granholm Announces Michigan Supplier Diversification Fund Helping Saline Lectronics Expand, Create and Retain 135 Jobs
FORMER AUTO SUPPLIER SHIFTING INTO AERONAUTICS
AND MEDICAL DEVICES
PRESS RELEASE
FOR IMMEDIATE RELEASE
Bridget Beckman, MEDC
(517) 335-4590 or beckmanb1@michigan.org
LANSING – Governor Jennifer M. Granholm and Michigan Economic Development Corporation (MEDC) President and CEO Greg Main today announced that the Michigan Supplier Diversification Fund, a multi-faceted initiative designed to help Michigan manufacturers and auto suppliers diversify into new emerging sectors, will help Saline Lectronics – the first company to utilize the program – expand its operations. The former auto supplier has obtained certification to produce components for the aeronautics and medical devices industries and plans to create 53 new jobs and retain 82.
“Michigan is putting into action innovative economic development tools like the Michigan Supplier Diversification Fund to help Michigan companies diversify into high-growth sectors and create and retain jobs,” Granholm said. “While Saline Lectronics is the first company to benefit from this program, it is just one of the many recent successful diversification stories we have celebrated in Michigan.”
The Michigan Strategic Fund (MSF) board today approved the collateral assistance as part of the MEDC’s ongoing diversification strategy. Saline Lectronics will utilize the Collateral Support Program, which was recently launched under the Michigan Supplier Diversification Fund. It addresses the current lack of bank financing available to companies that are attempting to diversify. Under the Collateral Support Program, the MEDC was able to partner with the company and Comerica Bank to provide the necessary collateral support to ensure the company could purchase the real estate needed to expand.
“Stabilizing automotive suppliers in Michigan and helping them diversify is a key part of our strategy to grow our economy,” MEDC President and CEO Greg Main said. “Using these funds to address either a cash-flow shortage or a collateral shortfall will allow Saline Lectronics’ diversification project to proceed, which in turn brings jobs and investment to our state.”
The MSF board approved allocation of $998,000 to be used as a collateral deposit. Comerica Bank plans to fast-track a loan of $2 million for the project, which will create 53 new jobs and retain 82 existing jobs. The MEDC’s investment is intended to be temporary as real estate values stabilize.
“This program fits our company’s needs like a glove and will help us access the capital we need to expand,” said Mario Sciberras, President of Saline Lectronics. “Without the state’s involvement, this project would not be moving forward.”
To be eligible for the program, a company must fall under the definition of a firm eligible to receive a MEGA tax credit. A business must also be engaged with a private lender for the purpose of acquiring a commercial loan for a diversification project and must exhibit a cash-flow shortage according to the lender’s analysis.
“Saline Lectronics has been a long-time customer of Comerica and we are delighted to help fund their expansion plans. The process for this program has been fast and efficient and we look forward to working with other companies on similar projects,” said Daniel Maletich, senior vice president, Comerica Bank.
The MEDC is now accepting applications for the Michigan Loan Participation Program. Interested borrowers and lenders should contact the MEDC customer service center at (517) 373-9808 for more information about how to apply.
More About Saline Lectronics
Saline Lectronics quality processes have been recognized with several certifications this year: they have earned ISO Medical Products certification (ISO:13485:2003), International Traffic in Arms Regulations (ITAR) registration, and they recently earned the AS9100:2004 Aerospace Standard.
