The Complete Guide to Business Loans in Michigan 2026

Table of Contents

1. Introduction: The State of Michigan Business Lending in 2026

2. Why Michigan Businesses Need Strategic Financing

3. Types of Business Loans Available in Michigan

   • SBA Loans (7(a) and 504)

   • Equipment Financing

   • Working Capital Loans

   • Commercial Real Estate Loans

   • Revenue-Based Financing

   • Business Lines of Credit

   • Merchant Cash Advances

4. Michigan's Top Business Lenders: Banks vs. Boutique Firms

5. How to Qualify for a Business Loan in Michigan

6. The Michigan Business Loan Application Process

7. Michigan-Specific Loan Programs and Resources

8. Industry-Specific Financing in Michigan

9. Geographic Considerations: Detroit vs. Grand Rapids vs. Outstate

10. Common Mistakes Michigan Business Owners Make

11. How to Choose the Right Business Loan for Your Michigan Company

12. The Future of Business Lending in Michigan

13. Frequently Asked Questions

14. Next Steps: Get Your Michigan Business Funded

Introduction: The State of Michigan Business Lending in 2025

Michigan's business landscape has transformed dramatically over the past two decades. From the economic challenges of 2008 to today's thriving economy driven by automotive innovation, advanced manufacturing, technology, and a resurgent Detroit, Michigan businesses are poised for unprecedented growth.

But growth requires capital—and understanding your financing options has never been more critical.

As Michigan's Business Loan Authority, LVRG has facilitated over $1 billion in financing to more than 10,000 businesses nationwide, with a deep focus on Michigan companies. Over our 20+ years headquartered in Metro Detroit, we've seen firsthand how the right financing at the right time can transform a business from surviving to thriving.

This comprehensive guide covers everything you need to know about business loans in Michigan in 2025, including:

• Every major loan type available to Michigan businesses

• How to qualify and what lenders really look for

• Comparison of lenders from major banks to boutique firms

• Michigan-specific programs most business owners don't know about

• Industry-specific strategies for manufacturing, construction, healthcare, retail, and more

• Step-by-step application guidance to maximize your approval odds

• Real examples from Michigan businesses we've funded

Whether you're a manufacturer in Sterling Heights, a restaurant owner in Grand Rapids, a construction company in Lansing, or a tech startup in Ann Arbor, this guide will help you navigate Michigan's business lending landscape with confidence.

Key Statistics:

• Michigan small businesses employed nearly 2 million people in 2024

• Over $980 million in SBA-backed loans were approved for Michigan businesses in FY 2022

• Michigan ranks in the top 10 states for manufacturing employment

• Detroit's economic resurgence has created unprecedented opportunities for business financing

Let's begin.

Why Michigan Businesses Need Strategic Financing

The Michigan Advantage

Michigan offers unique advantages for business owners:

1. Diverse Economy: From automotive to agriculture, technology to tourism

2. Strategic Location: Access to Canadian markets and Great Lakes shipping

3. Talent Pool: World-class engineering, manufacturing, and healthcare workforce

4. Lower Operating Costs: More affordable than coastal markets

5. Pro-Business Environment: State and local support for business growth

Why Financing Matters in Michigan

Even profitable Michigan businesses need strategic financing to:

Seize Opportunities

• Land that six-figure contract but need to purchase materials upfront

• Acquire a competitor before someone else does

• Expand into a second location while market conditions are favorable

• Invest in automation to stay competitive globally

Manage Cash Flow

• Bridge gaps between 60-90 day payment terms from big automotive OEMs

• Handle seasonal fluctuations (construction, retail, tourism)

• Maintain working capital during rapid growth

• Cover unexpected equipment repairs or replacements

Invest in Growth

• Purchase new manufacturing equipment to increase capacity

• Hire key personnel ahead of revenue increases

• Develop new products or expand service lines

• Upgrade technology systems for efficiency

Navigate Challenges

• Economic uncertainty or industry disruptions

• Supply chain cost increases

• Labor shortages requiring higher wages

• Regulatory changes requiring capital investment

The Cost of NOT Having Capital

Many Michigan business owners underestimate the opportunity cost of being undercapitalized:

• Lost Contracts: Can't bid on larger projects without proof of working capital

• Slower Growth: Competitors with better financing capture market share

• Vendor Relationships: Can't negotiate better terms without ability to pay upfront

• Emergency Problems: Minor issues become major crises without capital reserves

• Stress and Decisions: Making decisions from scarcity rather than strategy

Bottom Line: In Michigan's competitive business environment, liquidity isn't optional—it's the difference between capitalizing on opportunities and watching them pass by.

Types of Business Loans Available in Michigan

Michigan businesses have access to a wide variety of financing options. Understanding each type is critical to choosing the right solution for your situation.

1. SBA Loans (7(a) and 504)

Overview Small Business Administration (SBA) loans are partially government-guaranteed, allowing banks to lend with less risk. This results in favorable terms for borrowers.

SBA 7(a) Loans

• Loan Amount: Up to $5 million

• Use Cases: Working capital, equipment, real estate, business acquisitions, refinancing, partner buyouts

• Terms: Up to 10 years (equipment/working capital), 25 years (real estate)

• Interest Rates: Current rates range from 11.5%-16.65% (tied to Prime Rate + margin)

• Down Payment: Typically 10-20%

• Michigan Context: Michigan had 2,115 SBA 7(a) loans approved totaling $813+ million in FY 2022

SBA 504 Loans

• Loan Amount: Up to $5.5 million per project (higher for certain manufacturing/energy projects)

• Use Cases: Commercial real estate purchase, construction, major equipment purchases

• Structure: 50% bank financing, 40% CDC (Certified Development Company), 10% borrower down payment

• Terms: 10, 20, or 25 years (fixed rate for CDC portion)

• Interest Rates: Below-market fixed rates (currently ~6-8% for CDC portion)

• Michigan Context: Michigan Certified Development Corporation (MCDC) is the leading 504 provider in the state

Who Should Consider SBA Loans:

• Established businesses (2+ years in business preferred)

• Strong credit (typically 680+ credit score)

• Businesses needing large amounts ($150K+) with longer terms

• Real estate purchases or major equipment investments

• Business acquisitions requiring competitive rates

Pros:

• Lower interest rates than conventional loans

• Longer repayment terms = lower monthly payments

• Less cash out of pocket (10-20% down vs. 30%+ for conventional)

• Working capital allowed for 7(a) loans

Cons:

• Lengthy application process (45-90 days typical)

• Extensive documentation required

• Personal guarantees required

• Collateral requirements

• SBA fees (1.5%-3.75% of loan amount)

Michigan-Specific Insight: Top SBA lenders in Michigan include Huntington National Bank (largest SBA lender nationally), Comerica, Fifth Third Bank, and Chase. However, working with a specialized SBA broker like LVRG can connect you with 25+ elite SBA lenders nationwide—many of which offer better rates and faster processing than local banks. Michigan CDCs include MCDC, Oakland County BFC, and various regional CDCs.

2. Equipment Financing

Overview Specialized loans or leases for purchasing business equipment, from construction machinery to medical devices to manufacturing equipment.

Loan Amount: $50,000 to $50,000,000+ Use Cases: Construction equipment, manufacturing machinery, medical equipment, commercial vehicles, restaurant equipment, gym equipment, agricultural equipment, power generation, aviation Terms: 3-7 years typical (shorter for technology, longer for heavy equipment) Interest Rates: 5%-15% depending on creditworthiness and equipment type Down Payment: 10%-20% typical (sometimes 0% for strong borrowers)

Types of Equipment Financing:

1. Equipment Loans

   • You own the equipment

   • Build equity

   • Section 179 tax deduction eligible

   • Fixed payments

2. Equipment Leases

   • Lower monthly payments

   • Upgrade flexibility

   • 100% financing possible

   • May include maintenance

3. Sale-Leaseback

   • Unlock capital from owned equipment

   • Continue using equipment

   • Improve cash flow

   • Maintain operational capacity

Who Should Consider Equipment Financing:

• Construction companies needing excavators, bulldozers, cranes

• Manufacturers needing CNC machines, robotics, production lines

• Medical practices needing imaging equipment, surgical equipment

• Transportation companies needing trucks, trailers

• Gyms needing fitness equipment

• Restaurants needing kitchen equipment

• Agricultural operations needing tractors, harvesters

Pros:

• Equipment serves as collateral

• Easier approval than unsecured loans

• Preserve working capital

• Tax advantages (Section 179, depreciation)

• Fixed payment structure

Cons:

• Equipment depreciates

• May require down payment

• Restrictions on equipment use/location

• Early termination penalties

Michigan-Specific Insight: Michigan's manufacturing heritage means excellent equipment financing options exist. Michigan manufacturers, contractors, and agricultural operations have access to specialized lenders who understand industry-specific equipment. LVRG specializes in large-ticket equipment financing ($500K-$100M+) for Michigan construction, manufacturing, and industrial companies—particularly for businesses acquiring multiple pieces of equipment or complete production lines.

3. Working Capital Loans

Overview Short to medium-term financing designed to cover day-to-day operational expenses and smooth cash flow gaps.

Loan Amount: $25,000 to $1,500,000 Use Cases: Payroll, inventory, accounts payable, seasonal expenses, bridge financing Terms: 6 months to 24 months typical Interest Rates: 8%-30% depending on structure and risk Approval Speed: 24-72 hours possible for alternative lenders

Types of Working Capital Financing:

1. Term Loans

   • Fixed amount

   • Fixed repayment schedule

   • Predictable payments

   • One-time infusion

2. Revenue-Based Financing

   • Repayment tied to sales/revenue

   • Flexible payments (more when sales are high, less when low)

   • No fixed monthly payment

   • 3-12 month terms common

3. Merchant Cash Advances

   • Based on credit card sales

   • Daily or weekly repayment

   • Very fast approval (same day possible)

   • Higher cost but extreme flexibility

Who Should Consider Working Capital Loans:

• Seasonal businesses (construction, retail, tourism)

• Businesses with lumpy cash flow

• Companies experiencing rapid growth

• Businesses waiting on large accounts receivable

• Companies needing to fulfill large orders

Pros:

• Fast approval and funding

• Less documentation than SBA loans

• Can use for any business purpose

• Unsecured options available

• Flexible repayment options

Cons:

• Higher interest rates than SBA/bank loans

• Shorter terms = higher monthly payments

• Personal guarantee usually required

• May have restrictions on additional debt

Michigan-Specific Insight: Michigan manufacturers and contractors frequently need working capital to bridge payment terms. Automotive suppliers often face 60-90 day payment terms from OEMs—working capital financing bridges this gap. Retailers in tourist areas (Traverse City, Mackinac Island, Harbor Springs) use working capital to build inventory for summer season. Detroit restaurants use working capital during slower winter months.

4. Commercial Real Estate Loans

Overview Loans for purchasing or refinancing owner-occupied commercial property or investment properties.

Loan Amount: $500,000 to $15,000,000+ (LVRG range) Use Cases: Purchase commercial building for business operations, refinance existing commercial property, construction of new building Terms: 10-25 years Interest Rates: 6%-10% (current market rates) Down Payment: 10%-30% depending on property type and loan structure

Types of Commercial Real Estate Loans:

1. Owner-Occupied (Business Property)

   • SBA 504 loans available

   • Conventional bank loans

   • Lower down payment options

   • Business uses majority of property

2. Investment Property

   • Conventional commercial loans

   • Typically 25-30% down

   • Rental income considered

   • Stricter qualification

3. Construction Loans

   • Draw schedule based on construction progress

   • Higher interest rates

   • Convert to permanent financing

   • More documentation required

Who Should Consider Commercial Real Estate Loans:

• Businesses currently leasing who want to build equity

• Companies needing specialized facilities

• Businesses in growing markets wanting to secure location

• Companies with real estate appreciation potential

• Businesses seeking tax advantages of property ownership

Pros:

• Build equity instead of paying rent

• Property appreciation potential

• Tax benefits (depreciation, interest deduction)

• Control over property/improvements

• Can lease excess space for income

Cons:

• Large down payment required

• Ties up capital

• Maintenance responsibility

• Less flexibility to relocate

• Market risk if area declines

Michigan-Specific Insight: Detroit and other Michigan markets offer excellent opportunities for owner-occupied properties due to lower real estate costs compared to coastal markets. Many Michigan manufacturers, distributors, and service companies in growth mode are purchasing facilities to gain stability and build wealth. Grand Rapids, Ann Arbor, and suburban Detroit markets have seen significant appreciation. SBA 504 loans are particularly attractive for Michigan owner-occupied properties—only 10% down and 25-year fixed rate on CDC portion.

5. Revenue-Based Financing

Overview Financing where repayment is a percentage of monthly revenue rather than a fixed payment.

Loan Amount: $50,000 to $1,000,000 Use Cases: Marketing campaigns, inventory purchases, seasonal cash flow, rapid expansion Terms: 3-12 months typical Cost: Factor rates of 1.15-1.50 (borrow $100K, repay $115K-$150K) Repayment: 5%-15% of daily/weekly/monthly revenue

How It Works: You receive lump sum, repay percentage of revenue until total amount repaid:

• Revenue up? Repayment up (but % stays same)

• Revenue down? Repayment down automatically

• No risk of default from single bad month

Who Should Consider Revenue-Based Financing:

• Seasonal businesses

• Businesses with variable monthly revenue

• E-commerce companies

• Retail businesses

• Restaurants with fluctuating traffic

Pros:

• Payments flex with revenue

• Fast approval (2-3 days)

• Minimal documentation

• No collateral required typically

• No fixed monthly obligation

Cons:

• Higher cost than traditional loans

• Short repayment period

• Daily/weekly ACH can feel intrusive

• Not building traditional credit

• May limit cash flow flexibility

Michigan-Specific Insight: Michigan retailers, restaurants, and service businesses with seasonal patterns often prefer revenue-based financing. Tourist-dependent businesses (Northern Michigan, Detroit entertainment venues) benefit from lower payments in slow months. E-commerce businesses selling Michigan-made products can use revenue-based financing to purchase inventory before peak seasons without fixed payment stress.

6. Business Lines of Credit

Overview Revolving credit line you can draw from as needed, similar to a credit card but with better terms.

Credit Limit: $10,000 to $1,000,000+ Use Cases: Cash flow management, short-term needs, emergency backup, seasonal inventory Terms: Revolving (no set term, but annual review) Interest Rates: 7%-25% on drawn amounts Draw Period: Typically ongoing with annual renewal

How It Works:

• Approved for credit line (say $250,000)

• Draw only what you need, when you need it

• Interest charged only on drawn amount

• Repay and credit becomes available again

• Minimum payment or interest-only options

Types:

1. Secured LOC - Backed by collateral (real estate, inventory, equipment)

2. Unsecured LOC - Based on creditworthiness, no collateral

3. Inventory LOC - Secured by inventory specifically

Who Should Consider Business Lines of Credit:

• Established businesses with strong credit

• Businesses needing flexible access to capital

• Companies with occasional cash flow gaps

• Businesses wanting "insurance policy" for emergencies

• Seasonal businesses needing temporary working capital

Pros:

• Ultimate flexibility

• Pay interest only on what you use

• Quick access when opportunities arise

• Can pay down and redraw

• Builds business credit

Cons:

• Higher interest rates than term loans

• Requires strong credit/financials

• Annual renewal uncertainty

• Personal guarantee typically required

• May have maintenance fees

Michigan-Specific Insight: Many successful Michigan businesses maintain lines of credit even if not actively drawing—it's cheap insurance. Automotive suppliers use LOCs to manage gaps between material purchases and customer payments. Construction companies use LOCs to cover project costs before progress payments arrive. Service businesses use LOCs to smooth cash flow during growth phases when expenses precede revenue.

7. Merchant Cash Advances (MCAs)

Overview Advance on future credit card sales, repaid through percentage of daily credit card receipts.

Advance Amount: $5,000 to $500,000 Use Cases: Emergency funding, very short-term needs, businesses with credit/qualification challenges Terms: 3-12 months typical Cost: Factor rates of 1.20-1.50+ (highest cost option) Repayment: 10%-20% of daily credit card sales

How It Works:

• Receive lump sum based on credit card processing history

• Small percentage of each day's credit card sales goes to repayment

• Slower sales days = smaller payment

• Busy days = larger payment

• No fixed monthly obligation

Who Should Consider MCAs:

• Restaurants, bars, retail stores with high credit card volume

• Businesses needing emergency funding (equipment breakdown, urgent repair)

• Businesses that can't qualify for traditional financing

• Very short-term needs (< 6 months)

Pros:

• Fastest approval (same day possible)

• Minimal documentation

• Bad credit OK

• Payment tied to sales (automatic protection)

• No collateral required

Cons:

• HIGHEST cost option

• Can create cash flow strain

• Daily ACH can feel aggressive

• May trap businesses in cycle of renewing

• Damages long-term financial health if overused

Michigan-Specific Insight: MCAs should be last resort or very short-term solutions only. However, they do serve a purpose for Michigan restaurants, bars, and retail stores facing emergencies—like a restaurant in Downtown Detroit that needs walk-in cooler replaced immediately or can't operate. Use only when speed trumps cost and you have clear path to repay quickly. Work with reputable providers only—industry has predatory players.

Michigan's Top Business Lenders: Banks vs. Boutique Firms

Understanding who you're borrowing from is as important as understanding what you're borrowing.

Major Banks Operating in Michigan

Huntington National Bank

• Strength: #1 SBA 7(a) lender nationally AND in Michigan

• Focus: Small business, SBA loans

• Loan Range: $50,000 - $5,000,000+

• Speed: 60-90 days typical for SBA

• Best For: SBA loans, established businesses with strong credit

• Consideration: Large bank processes, less personalized service

Comerica Bank

• Strength: Major Michigan presence, strong commercial lending

• Focus: Middle market businesses, commercial loans

• Loan Range: $500,000+

• Best For: Larger businesses, commercial real estate, equipment

• Consideration: Higher minimums, relationship banking focus

Fifth Third Bank

• Strength: Growing Michigan presence, SBA lending

• Focus: Small to mid-size businesses

• Loan Range: $100,000+

• Best For: SBA loans, business expansion

• Consideration: Moderate approval timeline

Chase Bank

• Strength: National resources, multiple products

• Focus: Existing Chase business customers

• Loan Range: Varies widely

• Best For: Businesses banking with Chase already

• Consideration: May favor existing relationships

The State Bank

• Strength: Michigan community bank, local decisions

• Focus: Community businesses, SBA lending

• Loan Range: $50,000 - $5,000,000

• Best For: Businesses wanting local decision-making

• Consideration: Smaller capacity for very large loans

Certified Development Companies (CDCs)

Michigan Certified Development Corporation (MCDC)

• Strength: Largest SBA 504 provider in Michigan

• Focus: SBA 504 loans (commercial real estate, equipment)

• Coverage: All 83 Michigan counties

• Best For: Owner-occupied real estate, major equipment purchases

• Impact: Nearly $900 million in projects since 2014

Oakland County Business Finance Corporation (BFC)

• Strength: 40+ years SBA 504 experience

• Coverage: All of Michigan (despite name)

• Best For: SBA 504 loans for real estate and equipment

Community Development Financial Institutions (CDFIs)

Invest Detroit

• Loan Range: $50,000 - $2,500,000

• Focus: Detroit businesses, underserved entrepreneurs

• Best For: Detroit-based businesses needing support beyond capital

• Consideration: Mission-driven, may have specific qualifying criteria

ProsperUs Detroit

• Loan Range: Up to $50,000

• Focus: Detroit, Hamtramck, Highland Park microloans

• Best For: Small startups, underserved communities

• Rates: 7% interest rate

Detroit Development Fund (DDF)

• Focus: Businesses owned by entrepreneurs of color

• Best For: Minority-owned businesses in Detroit

• Support: Beyond capital—training and consulting

Boutique/Alternative Lenders

LVRG Business Funding

• Strength: Michigan's Business Loan Authority, Detroit-headquartered

• Loan Range: $50,000 - $50,000,000

• Focus: Established businesses, direct lending + bank partnerships

• Speed: Days to weeks (depending on product)

• Best For: Businesses needing speed + expertise, large equipment deals, working capital, SBA loan brokerage

• Unique Value: Boutique service, direct lending capability, access to 25+ elite SBA lenders nationwide, Michigan industry expertise (manufacturing, construction, automotive)

• Track Record: $1B+ funded, 10,000+ businesses served, 20+ years experience

Online/National Lenders

Pros:

• Fast application/approval

• Less stringent requirements

• Technology-enabled process

Cons:

• Higher interest rates (often 20%+)

• Less personalized service

• No local market knowledge

• May have predatory terms

Examples: OnDeck, Kabbage, Bluevine, Fundbox, etc.

How to Choose the Right Lender Type

Choose Major Bank If:

• You have excellent credit (720+)

• You need SBA loan and have time (90+ days)

• You want absolute lowest rates

• You don't mind bureaucracy

Choose Community Bank/Credit Union If:

• You want local decision-making

• You value relationship banking

• Your needs are straightforward

• You're established in community

Choose CDC If:

• You're buying commercial real estate

• You're buying major equipment ($250K+)

• You want SBA 504 benefits

• You have 10%+ down payment

Choose CDFI If:

• You're in Detroit/targeted community

• You're minority/woman-owned

• You need < $50K

• You want mission-driven support

Choose Boutique Lender (like LVRG) If:

• You need speed + expertise

• You want options (not limited to one bank)

• Your situation is unique/complex

• You value relationship + responsiveness

• You need $50K-$50M range

• You're in specialized industry (construction, manufacturing)

Choose Online Lender If:

• You need money in 24-48 hours

• You have credit challenges

• You need < $250K

• You're OK with higher cost for convenience

How to Qualify for a Business Loan in Michigan

Understanding qualification criteria helps you prepare properly and choose the right loan products.

Universal Qualifying Factors

Credit Score

• Personal Credit: Most lenders pull personal credit of business owners

  • 680+: Excellent - qualify for most products

  • 650-679: Good - qualify for many products

  • 620-649: Fair - limited options, higher rates

  • <620: Poor - very limited options, alternative lenders only

• Business Credit: Dun & Bradstreet PAYDEX score, Experian, Equifax business scores

  • Important for larger loans ($500K+)

  • Built through paying business vendors on time

  • Less critical for smaller loans

Time in Business

• 2+ years: Considered established, best rates

• 1-2 years: Eligible for some products

• <1 year: Very limited options (SBA microloans, alternative lenders)

Revenue

• SBA Loans: Typically need $250K+ annual revenue

• Working Capital: Often need $300K+ annual revenue

• Equipment Financing: May be flexible if equipment supports revenue growth

Cash Flow/Profitability

• Must show ability to service debt

• Debt Service Coverage Ratio (DSCR) typically 1.25x minimum

  • Formula: (Net Operating Income) / (Total Debt Service)

  • Example: $150K net income / $100K annual debt payments = 1.5 DSCR

Collateral

• Real Estate: Strongest collateral, may get 80% LTV

• Equipment: Good collateral, 70-80% LTV typical

• Inventory: OK collateral, 50-70% advance rate

• Accounts Receivable: OK collateral, 70-85% advance rate

• Unsecured: Possible for working capital if strong credit/revenue

Personal Guarantee

• Required for virtually all small business loans

• Any owner with 20%+ ownership typically signs

• Means you're personally liable if business can't pay

Product-Specific Requirements

SBA 7(a) Loans:

• 2+ years in business (preferred)

• 680+ credit score

• Profitable or path to profitability

• Can show use of funds

• No other better financing options (SBA is "lender of last resort")

• Tried conventional bank and been declined (sometimes)

SBA 504 Loans:

• Owner-occupied property (51%+ occupancy)

• Creating or retaining jobs

• 10% down payment (15% for new businesses)

• Can cover up to 40% of project with 504 financing

Equipment Financing:

• Equipment must be business-use

• Equipment must have resale value

• 640+ credit score typical

• Down payment 10-20% (sometimes 0%)

Working Capital:

• 6+ months in business minimum

• $25K+ monthly revenue

• 600+ credit score (alternative lenders)

• Active business bank account

Commercial Real Estate:

• 680+ credit score

• 20-30% down payment

• Property appraisal required

• Environmental assessment may be required

• Owner-occupied or investment property

Documentation You'll Need

Basic Package (All Loans):

• Business tax returns (2 years)

• Personal tax returns of owners (2 years)

• Bank statements (3-6 months)

• Profit & Loss statement (current year)

• Balance sheet (current)

• Business debt schedule (all existing loans)

• Business plan or loan use summary

Additional for SBA Loans:

• Personal financial statement

• Resume/business history

• Copy of business lease or deed

• Articles of incorporation/organization

• Business licenses

• Franchise agreement (if applicable)

• Detailed use of funds breakdown

Additional for Real Estate:

• Purchase agreement

• Property appraisal

• Phase 1 Environmental Assessment

• Property insurance quotes

• Rent roll (if multi-tenant)

Additional for Equipment:

• Equipment quotes/invoices

• Equipment specs/photos

• Proof of insurance quotes

Michigan-Specific Considerations

Automotive Industry Suppliers:

• Lenders understand payment terms (60-90 days)

• May look at contracts/POs differently

• Working capital more readily available

• Equipment financing for automation common

Manufacturing:

• Equipment financing very accessible

• Lenders understand machinery valuation

• May consider ongoing customer contracts

• Real estate opportunities strong (lower cost than coasts)

Construction:

• Seasonal cash flow understood

• Equipment critical (easier approval)

• Personal credit may weigh more

• Contractor licenses/bonding considered

Restaurants/Hospitality:

• Higher risk profile (more scrutiny)

• SBA loans available but competitive

• Equipment financing for kitchen/furniture

• Revenue-based financing common

• Detroit/Grand Rapids markets stronger than rural

Agriculture:

• FSA loans available (Farm Service Agency)

• Equipment financing for tractors/equipment

• Seasonal cash flow understood

• Michigan's diverse ag economy (cherries, apples, corn, dairy)

The Michigan Business Loan Application Process

Understanding what to expect makes the process smoother and faster.

Step 1: Self-Assessment (Before Applying)

Ask Yourself:

• How much do I need? (Be specific)

• What will I use it for? (Specific use of funds)

• How will this make/save money? (ROI justification)

• Can I afford the payments? (Conservative cash flow analysis)

• What's my credit score? (Check before applying)

• What can I offer as collateral?

• How quickly do I need funds?

Red Flags to Address First:

• Credit score below 640

• Recent late payments/collections

• Tax liens or judgments

• Operating losses without clear plan

• Maxed-out existing credit

• No business tax returns filed

Tip: Fix what you can before applying. A few months of on-time payments can raise credit score significantly.

Step 2: Choose the Right Loan Type

Based on your needs, timeline, and qualifications:

If you need...

• $5M+ for real estate → SBA 504 or conventional commercial loan

• $500K+ for equipment → Equipment financing or SBA 7(a)

• $100K-$500K working capital → Working capital term loan or SBA 7(a)

• $25K-$100K quickly → Revenue-based financing or MCA

• Ongoing flexible access → Business line of credit

If you have...

• Perfect credit + time → SBA loan (best rates)

• Good credit + 2 years business → Most options available

• Fair credit + revenue → Alternative/working capital loans

• Poor credit + revenue → Revenue-based, MCA (higher cost)

• Startup (no history) → Very limited; consider microloans, CDFI

Step 3: Choose Your Lender/Partner

Option A: Direct to Bank

• Pros: No middleman

• Cons: Limited to that bank's appetite/programs, may get declined when could be approved elsewhere

• Best For: Existing banking relationship, straightforward deals

Option B: Work with Broker/Boutique Firm (like LVRG)

• Pros: Access to multiple lenders, expert guidance, higher approval odds, potentially better terms

• Cons: None if reputable (you pay the lender, not the broker for most products)

• Best For: Complex situations, wanting options, needing speed + expertise

Option C: Multiple Applications

• Pros: Can compare offers

• Cons: Multiple credit pulls can hurt score, time-consuming, overwhelming

• Best For: Very established business with perfect credit

LVRG's Approach: We work as your advocate, accessing our network of 25+ elite SBA lenders and institutional capital partners. You apply once, we present your deal to the lenders most likely to approve and offer best terms. No hard credit pull until you choose to move forward with a specific lender.

Step 4: Prepare Your Application Package

Document Checklist: □ Completed application form □ Business tax returns (2 years) □ Personal tax returns of all 20%+ owners (2 years) □ Bank statements (3-6 months) □ Current P&L (Profit & Loss) statement □ Current balance sheet □ Business debt schedule □ Use of funds explanation (detailed) □ Business plan or growth plan □ Personal financial statement □ Additional docs based on loan type

Pro Tips:

• Organize digitally in one folder

• Name files clearly (2023_Business_Tax_Return.pdf)

• Ensure all pages are clear/readable

• Don't hide anything (lenders will find it)

• Be honest about challenges and how you'll address them

Step 5: Application Submission

What Happens:

1. Initial review (same day typically)

2. Follow-up questions/request for additional docs

3. Full underwriting review (1-30 days depending on loan type)

4. Approval or decline (or "approved with conditions")

Timeline by Product:

• Working Capital (Alternative): 24-72 hours

• Equipment Financing: 3-7 days

• Revenue-Based Financing: 2-5 days

• Conventional Bank Loan: 2-4 weeks

• SBA 7(a) Loan: 4-8 weeks (sometimes faster with preferred lenders)

• SBA 504 Loan: 6-12 weeks

Step 6: Underwriting & Approval

What Lenders Are Doing:

• Pulling credit reports (personal and business)

• Verifying bank statements and tax returns

• Analyzing cash flow and ability to repay

• Appraising/inspecting collateral

• Checking corporate documents and business registration

• Ordering business background check

• Verifying employment/income sources

Why Deals Get Declined:

• Credit Issues: Undisclosed late payments, collections, judgments

• Cash Flow: Can't support debt payments

• Inconsistencies: Tax returns don't match bank statements

• Collateral: Insufficient to secure loan

• Use of Funds: Not acceptable for loan program

• Documentation: Missing or incomplete

If Declined:

• Ask why specifically

• Ask what would make you approvable

• Consider alternative lender/product

• Work on issues and reapply in 3-6 months

Step 7: Closing & Funding

What Happens:

• Loan documents prepared

• Review documents carefully (ask questions!)

• Sign closing documents

• UCC filings, lien recordings (if secured)

• Insurance verification

• Final conditions cleared

• Funding wired to your bank account

Timeline:

• Can be same day (working capital)

• Typically 1-3 days after approval

• 7-14 days for complex deals (SBA, real estate)

What to Verify Before Signing:

• Loan amount matches approval

• Interest rate matches approval

• Fees disclosed and reasonable

• Repayment terms clear

• No surprises in fine print

• Understand personal guarantee scope

• Prepayment penalty (if any)

Step 8: Post-Funding

Your Responsibilities:

• Make payments on time (set up autopay)

• Maintain insurance (life, property, liability)

• Provide annual financials (some loans require)

• Don't default on other obligations

• Use funds as stated in application

• Communicate proactively if issues arise

Build Relationship with Lender:

• Pay early occasionally

• Share positive business developments

• Keep them updated on growth

• Consider them for future needs

Michigan-Specific Loan Programs and Resources

Beyond conventional and SBA loans, Michigan offers unique programs most business owners don't know about.

State of Michigan Programs

Michigan Small Business Relief Program

• Focus: COVID-related, but model for future relief programs

• Learn: Shows state's commitment to small business support

• Contact: Michigan Economic Development Corporation (MEDC)

Michigan Business Development Program

• Loan/Grant Amounts: Up to $10 million

• Focus: Performance-based grants/loans for job creation

• Eligibility: Businesses creating jobs or making investments in Michigan

• Contact: MEDC - (517) 241-1400

Small Business P2 Loans (Pollution Prevention)

• Loan Amount: Up to $400,000

• Interest Rate: 5% or less

• Focus: Projects reducing waste, increasing sustainability, conserving energy

• Structure: 50% private lender, 50% state funding

• Contact: Michigan Department of Environment, Great Lakes, and Energy (EGLE)

• Michigan Context: Ideal for manufacturers upgrading to energy-efficient equipment

State Small Business Credit Initiative (SSBCI)

• Federal program administered by states

• Capital for debt and equity investment programs

• Contact: Michigan Economic Development Corporation

Local/Regional Programs

Motor City Match (Detroit)

• Grant Amount: Up to $100,000

• Focus: New and expanding Detroit businesses

• Awards: Quarterly distributions

• Includes: Real estate matching, grants for building improvements

• Website: motorcitymatch.com

Motor City Restore (Detroit)

• Grant Amount: Up to $500,000 quarterly

• Focus: Commercial storefront improvements

• Structure: Matching grants (50% of project costs)

• Best For: Detroit businesses improving physical locations

Detroit Revolving Loan Funds

• Detroit Industrial Revolving Loan Fund (DIRLF): Fixed-asset financing

• Resident/Real Estate Loan Fund: Property rehab for Detroit residents

• Focus: Detroit-based businesses and residents

• Administrator: Detroit Economic Growth Corporation (DEGC)

Oakland County Business Finance Corporation

• SBA 504 loans

• Statewide coverage despite name

• 40+ years experience

Networking & Support Organizations

Michigan Small Business Development Center (SBDC)

• Free counseling and training

• Help with business plans, loan applications

• Multiple offices statewide

• Website: michigansbc.org

SCORE Michigan

• Free mentoring from experienced business executives

• Help with business planning, loan prep

• Multiple chapters across Michigan

Detroit Regional Chamber of Commerce

• Networking, advocacy, resources

• Connects businesses with lenders/partners

Tech Town Detroit

• Small business incubator/accelerator

• Focus: Technology and retail entrepreneurs

• Resources: Coworking, programs, capital connections

Build Institute Detroit

• Entrepreneurship education

• Community support network

• Resource connections

Industry-Specific Resources

Michigan Manufacturing Technology Center (MMTC)

• Technical assistance for manufacturers

• Help with efficiency, automation

• Can connect to financing options

Michigan Agriculture Environmental Assurance Program (MAEAP)

• Support for farms/agriculture

• Can connect to financing for sustainability projects

Michigan Economic Development Corporation (MEDC)

• Master resource for all state programs

• Business attraction and support

• Venture capital connections

• Website: michiganbusiness.org

How to Access These Programs

1. Start with MEDC: One-stop shop for state programs - (888) 522-0103

2. Contact Local Economic Development: Every county/city has economic development office

3. Check with SBDC: Free consultation to identify programs - michigansbc.org

4. Industry Associations: Often know sector-specific programs

5. Work with Knowledgeable Lender: Firms like LVRG can navigate state/federal programs

Pro Tip: Many Michigan programs can be stacked with conventional/SBA loans to reduce your out-of-pocket costs.

Industry-Specific Financing in Michigan

Michigan's diverse economy means specialized financing strategies by industry.

Manufacturing

Michigan Context:

• 600,000+ manufacturing jobs in Michigan

• $43 billion in manufacturing GDP

• #2 state for manufacturing jobs as % of workforce

• Strong automotive, aerospace, food processing, medical device sectors

Financing Needs:

• Equipment: CNC machines, robotics, automation, production lines

• Working Capital: Raw materials, manage payment terms from OEMs

• Real Estate: Manufacturing facilities, warehouses

• Growth Capital: Capacity expansion, new product lines

Best Financing Options:

1. Equipment Financing: $100K-$50M+ for machinery (LVRG specializes in large-ticket manufacturing equipment)

2. SBA 504: Owner-occupied facilities

3. Working Capital: Bridge automotive payment terms (60-90 days)

4. Asset-Based Lending: A/R and inventory financing

Michigan-Specific Considerations:

• Lenders understand automotive supply chain payment terms

• Equipment has strong resale value (well-developed used market)

• Contracts with OEMs strengthen applications

• Michigan has infrastructure for large equipment deals

Success Story: Sterling Heights manufacturer needed $2.5M for automated production line to fulfill GM contract. Equipment financing structured at 6.5% over 7 years. ROI achieved in 18 months through increased capacity and reduced labor costs.

Construction & Contracting

Michigan Context:

• Detroit redevelopment boom

• Infrastructure investment (roads, bridges)

• Residential construction strong in Grand Rapids, Ann Arbor, suburban Detroit

• Seasonal considerations (winter challenges)

Financing Needs:

• Equipment: Excavators, bulldozers, trucks, cranes, specialized tools

• Working Capital: Materials, payroll between progress payments

• Bonding Support: Performance and payment bonds

• Cash Flow Management: Seasonal fluctuations

Best Financing Options:

1. Equipment Financing: $500K-$100M for heavy equipment (LVRG specializes in construction equipment financing)

2. Working Capital: Bridge project funding gaps

3. Lines of Credit: Seasonal cash flow management

4. Invoice Factoring: Convert A/R to immediate cash

Michigan-Specific Considerations:

• Lenders understand seasonal patterns

• Strong equipment resale market in Michigan

• Detroit construction boom creates opportunities

• MDOT contracts carry weight with lenders

Success Story: Lansing excavation contractor needed $850K for three new excavators to expand capacity. Equipment financing at 7.2% with seasonal payment structure (lower payments Dec-Feb). Business grew revenue 45% in first year.

Healthcare & Medical Practices

Michigan Context:

• Major healthcare systems (Beaumont, Henry Ford, U of M Health)

• Physician practices, dental offices, med spas throughout state

• Growing specialty medicine and elective procedures

• Medical device manufacturing strong

Financing Needs:

• Medical Equipment: Imaging (MRI, CT), surgical, dental, aesthetic

• Practice Acquisitions: Buying into or buying out partners

• Real Estate: Medical office buildings, surgery centers

• Working Capital: Manage insurance reimbursement delays

Best Financing Options:

1. Equipment Financing: Medical equipment (LVRG does medical equipment $500K-$50M+)

2. SBA 7(a): Practice acquisitions, real estate

3. SBA 504: Owner-occupied medical buildings

4. Working Capital: Bridge insurance payment cycles

Michigan-Specific Considerations:

• Medical equipment holds value well

• Michigan has strong medical device industry (support)

• Lenders understand insurance reimbursement cycles

• Practice valuations well-established in Michigan market

Success Story: Ann Arbor medical practice group acquired $3.2M imaging center using SBA 7(a) loan (25% down, 10-year term at prime + 2.75%). Consolidated referral network increased utilization by 60% in year one.

Restaurants & Hospitality

Michigan Context:

• Detroit restaurant scene renaissance

• Grand Rapids craft brewery boom

• Tourism-driven restaurants (Traverse City, Mackinac, Harbor Country)

• Automotive hospitality (hotels near factories/suppliers)

Financing Needs:

• Equipment: Kitchen equipment, furniture, POS systems, renovations

• Working Capital: Seasonal cash flow (winter slowdowns)

• Build-outs: New locations, expansions

• Franchise Fees: Chain restaurants

Best Financing Options:

1. SBA 7(a): Full restaurant financing (but competitive)

2. Equipment Financing: Kitchen equipment, furniture

3. Revenue-Based Financing: Seasonal cash flow management

4. Merchant Cash Advance: Emergency only (equipment breakdown)

Michigan-Specific Considerations:

• Tourist areas have extreme seasonality (lenders understand)

• Detroit and Grand Rapids markets strong for restaurants

• Craft brewery financing available (equipment + working capital)

• Franchise restaurants easier to finance (proven model)

Success Story: Downtown Detroit restaurant needed $225K for kitchen expansion and patio addition. Combined equipment financing ($150K) + revenue-based financing ($75K for working capital). Revenue-based payments lower in winter, higher in summer. Expansion increased seating 40%, revenue up 65%.

Retail

Michigan Context:

• Traditional retail challenged (like everywhere)

• Strong niche retail (Michigan-made products, local focus)

• E-commerce + brick-and-mortar hybrid models

• Tourist retail strong (Northern Michigan, Mackinac Island)

Financing Needs:

• Inventory: Seasonal purchasing, new products

• Store Build-outs: New locations, refreshes

• E-commerce: Website, fulfillment, marketing

• Working Capital: Bridge seasonal fluctuations

Best Financing Options:

1. Inventory Financing: Line of credit secured by inventory

2. Working Capital: Seasonal purchasing

3. Revenue-Based Financing: Flexible repayment

4. SBA 7(a): Real estate, major expansion

Michigan-Specific Considerations:

• Tourism retail has extreme seasonality (April-October busy)

• Michigan-made products have strong local support

• Lenders understand e-commerce + retail hybrid

• Lower occupancy costs than coastal markets

Success Story: Traverse City retail store (Michigan products) needed $175K for summer inventory and expanded e-commerce. Revenue-based financing provided flexibility—payments low in winter, higher in summer tourism season. E-commerce grew 200% providing year-round revenue diversification.

Automotive Industry

Michigan Context:

• 600+ Tier 1 & 2 automotive suppliers in Michigan

• EV transition creating investment needs

• 60-90 day payment terms from OEMs standard

• Global competition requiring automation

Financing Needs:

• Equipment: Robotics, automation, inspection systems

• Working Capital: Bridge 60-90 day OEM payment terms

• Capacity Expansion: New product launches

• Technology: EV-related tooling and processes

Best Financing Options:

1. Equipment Financing: Automation and robotics

2. Working Capital: Bridge payment terms

3. Asset-Based Lending: A/R financing

4. SBA 504: Manufacturing facility expansion

Michigan-Specific Considerations:

• Lenders understand OEM payment cycles

• Long-term contracts strengthen applications

• IATF 16949 certification carries weight

• EV transition investment understood and supported

Success Story: Warren automotive supplier needed $4.5M for automated assembly line serving Ford EV program. Equipment financing at 5.9% over 7 years. OEM contract provided payment certainty. ROI under 2 years through labor reduction and capacity increase.

Geographic Considerations: Detroit vs. Grand Rapids vs. Outstate

Michigan is not monolithic—financing considerations vary by region.

Metro Detroit (Wayne, Oakland, Macomb Counties)

Business Climate:

• Economic resurgence and revitalization

• Strong automotive, manufacturing, technology presence

• Major corporate headquarters

• Lower commercial real estate costs than coastal cities

Financing Advantages:

• More lender options (national + local)

• Larger deal capacity ($1M+ common)

• Strong professional services support (CPAs, attorneys familiar with financing)

• Detroit-specific programs (Motor City Match, Invest Detroit)

Financing Considerations:

• Some neighborhoods still challenged (due diligence on real estate locations)

• Economic history may cause lenders to scrutinize more

• However, comeback story is compelling to lenders now

Industries Getting Funded:

• Automotive suppliers (Warren, Sterling Heights)

• Manufacturing (all three counties)

• Technology (Downtown Detroit, Ann Arbor corridor)

• Healthcare (major systems)

• Restaurants/hospitality (Detroit renaissance)

LVRG Presence: Headquartered at 615 Griswold St, Downtown Detroit—deep market knowledge and relationships

Grand Rapids

Business Climate:

• Diverse economy (manufacturing, healthcare, hospitality)

• Strong job growth and population growth

• #2 city in Michigan

• Young, educated workforce

• Lower cost of living

Financing Advantages:

• Multiple regional banks with local decision-making

• SBA lending very active

• Medical device manufacturing cluster

• Craft brewery financing ecosystem

• Commercial real estate appreciation strong

Financing Considerations:

• Smaller deal capacity than Detroit (but growing)

• Fewer boutique/alternative lenders

• May need to look to Detroit or national lenders for $2M+ deals

Industries Getting Funded:

• Medical device manufacturing

• Office furniture (Herman Miller legacy)

• Craft breweries and hospitality

• Healthcare services

• Professional services

Ann Arbor

Business Climate:

• University of Michigan drives economy

• Technology and medical device hub

• High education levels

• Higher cost of living

• Research and innovation focus

Financing Advantages:

• Technology lending (VC, debt)

• Medical device expertise

• University partnerships/spinoffs attractive to lenders

• Strong professional services support

Financing Considerations:

• Higher real estate costs

• Competitive market

• Student-driven businesses (restaurants, retail) face seasonal challenges

Industries Getting Funded:

• Medical devices and biotech

• Software and technology

• University spin-offs

• Healthcare services

• Professional services

Lansing

Business Climate:

• State capital (government jobs)

• General Motors presence (Grand River Plant)

• Diverse manufacturing base

• Affordable cost of living/business

Financing Advantages:

• State employee base provides economic stability

• Manufacturing heritage

• Multiple banks serving market

• Lower real estate costs

Financing Considerations:

• Smaller market than Detroit/Grand Rapids

• May need Detroit lenders for large deals

Industries Getting Funded:

• Manufacturing and automotive

• Government contractors

• Healthcare

• Professional services supporting state government

Upper Peninsula

Business Climate:

• Natural resources (timber, mining)

• Tourism and recreation

• Sparse population

• Challenging winters

Financing Advantages:

• Tourism financing understood

• Natural resource lending available

• Lower competition

• USDA loans available (rural)

Financing Considerations:

• Limited local lending capacity

• Seasonality extreme

• May need to work with downstate lenders

• Population base smaller

Industries Getting Funded:

• Tourism and hospitality

• Natural resources

• Healthcare (critical access)

• Construction

Outstate/Rural Michigan

Business Climate:

• Agriculture prominent

• Small town manufacturing

• Tourism in some areas (Traverse City, Harbor Country)

• Population challenges

Financing Advantages:

• USDA rural business loans

• FSA farm loans

• Agricultural lending infrastructure

• Lower real estate costs

Financing Considerations:

• Local banks may have limited capacity

• May need regional or Detroit lenders

• Seasonal considerations (agriculture, tourism)

• Population trends challenging in some areas

Industries Getting Funded:

• Agriculture

• Agricultural processing

• Tourism

• Manufacturing

• Healthcare

Geographic Strategy Recommendations

If You're in Metro Detroit:

• You have access to most lender types locally

• Can choose boutique + bank + online

• LVRG = local with national reach

If You're in Grand Rapids/Ann Arbor/Lansing:

• Regional banks good for <$1M

• Consider Detroit-based boutique lenders (like LVRG) for $1M+

• SBA options strong locally

• Online lenders available

If You're in U.P./Rural Michigan:

• Start with local bank relationships

• Consider USDA programs

• May need Detroit lenders for larger amounts

• LVRG works statewide—we come to you or work remotely

Bottom Line: Geography matters less than it used to. Technology enables statewide and nationwide lending. However, working with lenders who understand Michigan's economy and your specific region still provides advantages.

Common Mistakes Michigan Business Owners Make

Learn from others' mistakes—avoid these common pitfalls.

Mistake #1: Waiting Until It's an Emergency

The Problem: Seeking financing when you're desperate puts you at a disadvantage. Lenders sense desperation and offer worse terms (or decline).

Why It Happens:

• "I'll deal with it when I need it"

• Optimism bias (assuming sales will materialize)

• Fear of debt/monthly payments

The Fix:

• Apply for financing when you don't urgently need it

• Establish lines of credit before you need them

• Maintain relationship with lender even when not borrowing

Michigan Example: Detroit contractor waits until equipment breaks down to seek financing. Gets declined by banks (too quick), forced into merchant cash advance at 1.40 factor rate. Costs business $40,000 extra vs. equipment financing obtained proactively.

Mistake #2: Not Checking Credit First

The Problem: Applying for financing without knowing your credit score leads to unpleasant surprises and wasted time.

Why It Happens:

• Assume credit is fine

• Don't want to know (fear)

• Don't realize business credit exists

The Fix:

• Check personal credit before applying (free at annualcreditreport.com)

• Sign up for credit monitoring

• Check business credit (Dun & Bradstreet, Experian Business)

• Fix errors BEFORE applying (can take 30-60 days)

Michigan Example: Grand Rapids manufacturer discovers 4-year-old medical collection (already paid) tanking credit score. Fixes before applying—goes from 620 to 690, saves 3% on interest rate = $30,000+ over loan life.

Mistake #3: Not Shopping Around

The Problem: Accepting first offer without comparing means potentially leaving better terms on the table.

Why It Happens:

• Time pressure

• Loyalty to existing bank

• Don't know other options exist

• Don't understand differences

The Fix:

• Get 2-3 competitive offers if possible

• Work with broker who can access multiple lenders

• Compare: rate, term, fees, prepayment penalty, total cost

Michigan Example: Ann Arbor medical practice offered SBA loan at Prime + 3.75% from local bank. LVRG connected them with elite SBA lender at Prime + 2.25%, saved $127,000 in interest over 10 years on $1M loan.

Mistake #4: Choosing Based Only on Interest Rate

The Problem: Focusing only on interest rate ignores other factors that affect total cost and fit.

Why It Happens:

• Rate is easy to compare

• Seems like most important factor

• Don't understand fees, terms, prepayment penalties

The Fix:

• Calculate total cost of financing (rate + fees + term)

• Consider: speed, flexibility, relationship, prepayment options

• Compare apples to apples

Example:

• Option A: $200K at 8% for 3 years = Total interest $26,000

• Option B: $200K at 6% for 5 years = Total interest $33,000 (Lower rate but longer term = more total interest paid)

Michigan Example: Lansing retailer chooses "7% equipment financing" over "9% LVRG option." But 7% option has: 3-year balloon payment (refinance risk), prepayment penalty (24 months interest), hidden fees ($8,000). LVRG option total cost actually lower despite higher rate.

Mistake #5: Not Preparing Documentation

The Problem: Incomplete or disorganized documentation slows approval, frustrates lenders, can lead to decline.

Why It Happens:

• Procrastination

• Not knowing what's needed

• Disorganized records

• Fear/shame about situation

The Fix:

• Request complete list of required docs upfront

• Organize digitally before starting

• Ensure tax returns match bank statements

• Be honest about issues upfront

Michigan Example: Sterling Heights manufacturer submits partial documentation, takes 6 weeks of back-and-forth. Competitor gets financed first, wins the contract. Lesson: preparation = speed = competitive advantage.

Mistake #6: Hiding Problems

The Problem: Not disclosing issues (bad credit, collections, tax liens) upfront wastes everyone's time and damages credibility.

Why It Happens:

• Embarrassment

• Hope lender won't find it

• Don't think it's relevant

The Fix:

• Full disclosure upfront

• Explain context and what you've done to fix it

• Show current stability and momentum

• Lenders respect honesty

Michigan Example: Detroit restaurant owner doesn't mention tax lien. Lender discovers during underwriting, declines due to non-disclosure (not the lien itself). Being upfront could have resulted in approval with higher rate or additional collateral.

Mistake #7: Not Reading the Fine Print

The Problem: Signing documents without fully understanding terms leads to nasty surprises.

Common Surprises:

• Prepayment penalties (can't pay off early without penalty)

• Personal guarantee scope (affects personal assets)

• Default provisions (what triggers default beyond late payment)

• Arbitration clauses (can't sue, must arbitrate disputes)

• Confession of judgment (lender can take assets without going to court)

The Fix:

• Read everything carefully

• Ask questions about anything unclear

• Have attorney review if large amount ($500K+)

• Negotiate unfavorable terms before signing

Michigan Example: Warren contractor signs MCA agreement with daily ACH of 18% of deposits. Business has 2 slow months, defaults, lender takes 18% of EVERY deposit until $75,000 paid. Can't pay suppliers, business nearly fails. Could have negotiated weekly vs. daily payments.

Mistake #8: Taking Too Little

The Problem: Borrowing less than needed to "save on interest" often backfires—need to apply again (more time, costs, energy).

Why It Happens:

• Fear of debt

• Optimism about revenue

• Wanting lower payment

The Fix:

• Calculate realistic need (+ 20% buffer)

• One larger loan often better than two smaller

• Consider: what if things take longer than expected?

Michigan Example: Grand Rapids manufacturer borrows $400K for equipment, not $500K recommended. Equipment arrives late (supply chain), needs working capital to bridge gap. Has to scramble for $100K working capital at much higher rate. Should have borrowed $500K originally.

Mistake #9: Ignoring Cash Flow Impact

The Problem: Not accurately projecting cash flow impact of loan payments leads to unexpected strain.

Why It Happens:

• Optimistic sales projections

• Not accounting for taxes, seasonality

• Focus on getting approved, not ongoing management

The Fix:

• Conservative cash flow projections

• Account for slow months/seasonality

• Ensure 1.25x DSCR minimum (preferably 1.5x)

• Build payment into monthly budget before applying

Michigan Example: Traverse City resort borrows using summer revenue projections, doesn't account for 6 months of low winter revenue. Struggles with payments November-April, damages banking relationship. Should have structured with seasonal payment option.

Mistake #10: Not Having a Relationship Lender

The Problem: Transactional approach (only contact lender when need money) means starting from scratch each time.

Why It Happens:

• Don't see value in relationship

• Busy running business

• Previous bad bank experiences

The Fix:

• Choose lender you want to work with long-term (like LVRG)

• Keep them updated quarterly (5-minute call)

• Introduce them to your business (facility tour)

• Make them your first call for any financing need

Benefits:

• Faster approvals next time (already know you)

• Better terms (loyalty, track record)

• Advice beyond lending

• Advocate during tough times

Michigan Example: Detroit manufacturer has 10-year relationship with LVRG. When COVID hits, LVRG proactively reaches out, helps navigate PPP, provides bridge financing, connects with customers also struggling. Business survives and thrives—relationship made the difference.

How to Choose the Right Business Loan for Your Michigan Company

With so many options, how do you choose? Follow this decision framework.

Step 1: Define Your Need

Ask:

• How much do I need? (Be specific, add 15% buffer)

• What will I use it for? (Equipment, working capital, real estate, acquisition)

• How quickly do I need it? (Today, this week, this month, this quarter)

• How will this make or save money? (ROI justification)

• What's my repayment plan? (Where will payment come from)

Step 2: Assess Your Qualifications

Personal Credit Score:

• 720+: Excellent → Full range of options

• 680-719: Good → Most options available

• 640-679: Fair → Some restrictions, higher rates

• 600-639: Poor → Alternative lenders only, expensive

• <600: Very poor → Merchant cash advance or wait until improved

Time in Business:

• 3+ years: Considered established

• 2-3 years: Good options

• 1-2 years: Limited but available

• <1 year: Very limited (microloans, alternative only)

Annual Revenue:

• $2M+: Full range of options

• $500K-$2M: Most options available

• $250K-$500K: Working capital, equipment, some SBA

• $100K-$250K: Alternative lenders, microloans

• <$100K: Microloans, CDFI only

Profitability:

• Profitable: Full options

• Break-even: Some options, higher scrutiny

• Operating loss: Very limited unless clear turnaround plan

Collateral Available:

• Real estate: Best collateral, lowest rates

• Equipment: Good collateral

• Inventory/A/R: OK collateral

• Nothing: Unsecured options (higher rates)

Step 3: Evaluate Speed vs. Cost Trade-off

Speed-Cost Spectrum:

The faster you need funding, the more it costs. Here's how financing options rank from fastest to slowest:

FASTEST (Same Day):

• Merchant Cash Advance - Cost: Highest (1.30-1.50 factor) - Requirements: Revenue only

VERY FAST (2-3 Days):

• Revenue-Based Financing - Cost: High (1.15-1.35 factor) - Requirements: Revenue + 600 credit score

FAST (1 Week):

• Working Capital Loan - Cost: Medium-High (12-30% APR) - Requirements: Revenue + 640 credit score

MODERATE (2 Weeks):

• Equipment Financing - Cost: Medium (6-15% APR) - Requirements: 640 credit score + equipment

MODERATE-SLOW (2-4 Weeks):

• Bank Term Loan - Cost: Low (6-10% APR) - Requirements: Excellent credit + complete documentation

SLOW (6-8 Weeks):

• SBA 7(a) Loan - Cost: Very Low (Prime Rate + 2-3%) - Requirements: Strong credit + time + extensive documentation

SLOWEST (8-12 Weeks):

• SBA 504 Loan - Cost: Lowest (5-8% fixed rate on CDC portion) - Requirements: Best credit + time + extensive documentation

The Rule: The faster you need money, the more it costs. Plan ahead to access lower-cost options.

Step 4: Match Need to Product

I Need To...

Buy Equipment ($50K-$5M+)

• ✅ Equipment Financing (LVRG: $100K-$50M+)

• ✅ SBA 7(a) if part of larger package

• ❌ Working capital (wrong product)

Purchase Commercial Real Estate

• ✅ SBA 504 (10% down, 25-year fixed)

• ✅ SBA 7(a) (more flexibility on use)

• ✅ Conventional commercial loan (20-30% down)

• ❌ Working capital (wrong product, too short-term)

Cover Payroll, Inventory, Operational Expenses

• ✅ Working Capital Loan (term loan)

• ✅ Line of Credit (draw as needed)

• ✅ Revenue-Based Financing (flexible repayment)

• ⚠️ Merchant Cash Advance (expensive, use sparingly)

Acquire a Business

• ✅ SBA 7(a) (designed for acquisitions)

• ✅ Seller financing + conventional loan hybrid

• ❌ Working capital (not intended use)

Rapid Growth Capital

• ✅ Working Capital term loan

• ✅ Line of Credit

• ✅ Revenue-Based if revenue growing

• ⚠️ Multiple small amounts vs. one larger amount

Seasonal Cash Flow

• ✅ Line of Credit (draw in slow months, repay in busy)

• ✅ Revenue-Based (payments flex with revenue)

• ❌ Traditional term loan (fixed payments hurt in slow months)

Step 5: Consider Your Michigan-Specific Situation

If You're in Automotive Supply Chain:

• Working capital critical (bridge 60-90 day payment terms)

• Equipment financing for automation

• Asset-based lending using A/R

• Lenders who understand automotive are critical

If You're in Manufacturing:

• Equipment financing primary need

• SBA 504 for facility ownership

• Working capital for growth

• Large-ticket lenders like LVRG essential ($500K+ equipment)

If You're in Construction:

• Equipment financing with seasonal flexibility

• Lines of credit for project cash flow

• Invoice factoring for immediate cash

• Lenders understanding seasonality

If You're in Hospitality/Restaurant:

• Equipment financing for kitchen, furniture

• Revenue-based for flexible working capital

• SBA 7(a) if strong franchise or concept

• Seasonal considerations for tourism areas

If You're in Technology/Startup:

• Traditional loans difficult

• Consider venture capital/venture debt

• Revenue-based if revenue traction

• ID Ventures, Michigan Rise for Michigan tech

Step 6: Decide on Direct Bank vs. Broker/Boutique Firm

Go Direct to Bank If:

• You have perfect credit (720+)

• You have existing relationship

• Your need is straightforward

• You have time (60-90 days OK)

• You're confident you'll be approved

Work with Broker/Boutique (like LVRG) If:

• You want options from multiple lenders

• Your situation is unique/complex

• You value expert guidance

• You want speed + competitive terms

• You're not certain about approval

• You need $50K-$50M range

• You're in specialized industry

Why LVRG:

• Access to 25+ elite SBA lenders (not just one bank)

• Direct lending capability + institutional partnerships

• 20+ years Michigan market expertise

• $1B+ funded experience

• Specialization in equipment ($500K-$100M+), working capital, SBA

• White-glove service at boutique scale

• You pay the lender, not us (in most cases)

Step 7: Calculate True Cost

Don't just look at interest rate—calculate Total Cost of Capital:

Components:

1. Interest Paid: Rate × Amount × Time

2. Origination Fees: Upfront fees (1-5% of loan)

3. SBA Guarantee Fee: (1.5-3.75% for SBA loans)

4. Prepayment Penalty: Cost to pay off early (if applicable)

5. Maintenance Fees: Annual/monthly fees (lines of credit)

6. Opportunity Cost: What could you earn with that payment instead?

Example Calculation: $500,000 loan at 8% for 5 years

• Monthly Payment: $10,137

• Total Paid: $608,220

• Total Interest: $108,220

• Add Origination Fee (2%): $10,000

• Total Cost: $118,220 (23.6% of loan amount)

Compare to Alternative: $500,000 at 6% SBA 7(a) for 10 years

• Monthly Payment: $5,551

• Total Paid: $666,120

• Total Interest: $166,120

• SBA Guarantee Fee (3.5%): $17,500

• Total Cost: $183,620 (36.7% of loan amount)

Wait—higher total cost but lower rate? Yes! Longer term = more interest paid. But lower monthly payment may be worth it for cash flow management.

The Key: Calculate what matters for YOUR situation:

• Need lowest monthly payment? Choose longer term

• Want to pay least total interest? Choose shortest term you can afford

• Need to preserve cash? Accept higher cost for flexibility

Step 8: Make Your Decision

Decision Matrix:

Use this quick reference to match your situation with the best loan type:

If you need more than $2M, have excellent credit, and time is not urgent: → Choose SBA 7(a) or SBA 504 loans

If you need equipment of any size and are an established business: → Choose Equipment Financing

If you need working capital quickly and are established: → Choose Working Capital Loan

If you need ongoing flexible access to funds: → Choose Business Line of Credit

If you're a seasonal business with fluctuating revenue: → Choose Revenue-Based Financing

If it's an emergency, you have poor credit, but revenue exists: → Choose Merchant Cash Advance (but use cautiously - highest cost)

If you're buying real estate and want to own it: → Choose SBA 504 (for owner-occupied properties)

Final Check Before Applying:

• ☐ Can I afford the monthly payment comfortably?

• ☐ Will this loan help me make more money than it costs?

• ☐ Do I have a plan B if sales are slower than projected?

• ☐ Have I compared multiple options?

• ☐ Do I understand all terms and conditions?

• ☐ Is this lender/product the right fit for my business?

The Future of Business Lending in Michigan

Understanding trends helps you position for success.

Trend 1: Continued Detroit Renaissance

What's Happening:

• Downtown Detroit office occupancy improving

• Residential development accelerating

• Corporate relocations/expansions (Microsoft, Google, others)

• Small business ecosystem strengthening

• Venture capital presence growing

Implications for Lending:

• Detroit-based businesses increasingly attractive to lenders

• Real estate appreciation improving loan-to-value ratios

• More lender competition = better terms for borrowers

• Detroit address no longer a negative (increasingly a positive)

Trend 2: Manufacturing Renaissance & Reshoring

What's Happening:

• Supply chain disruptions driving domestic manufacturing

• CHIPS Act investment in semiconductor manufacturing

• EV battery production coming to Michigan

• Automation/robotics investment accelerating

• "Made in Michigan/USA" consumer preference

Implications for Lending:

• Equipment financing demand strong (automation, robotics)

• Real estate financing for new/expanded facilities

• Working capital for supply chain inventory

• Lenders increasingly bullish on Michigan manufacturing

Trend 3: EV Transition

What's Happening:

• All major automakers transitioning to EVs

• Battery plants being built in Michigan

• Supply chain transformation (new suppliers, technologies)

• Traditional suppliers must adapt or die

Implications for Lending:

• Capital needs for retooling, new equipment

• Transitional working capital (declining old product, ramping new)

• Acquisition financing (consolidation inevitable)

• Lenders scrutinizing supplier viability more carefully

Trend 4: Technology Sector Growth

What's Happening:

• Mobility tech cluster building around automotive

• University of Michigan spin-offs increasing

• Detroit Innovate, ID Ventures active

• Ann Arbor tech scene maturing

• Remote work enabling Michigan tech talent retention

Implications for Lending:

• More venture capital available

• Revenue-based financing for growth-stage tech

• Traditional lending still difficult for true startups

• Michigan tech companies no longer need to move to coasts

Trend 5: Alternative Lending Maturation

What's Happening:

• Online lenders more established, professional

• Revenue-based financing growing rapidly

• Traditional banks offering online products

• Technology enabling faster underwriting

Implications for Lending:

• More options for Michigan businesses

• Speed improving across all lender types

• Cost of alternative lending may decrease (competition)

• Traditional banks forced to improve speed/service

Trend 6: SBA Modernization

What's Happening:

• SBA streamlining processes

• More SBA Preferred Lenders (faster approval authority)

• Technology improving application experience

• SBA Express programs growing

Implications for Lending:

• SBA loans getting faster (30-45 days becoming possible)

• More lenders participating in SBA programs

• Lower rates remaining competitive advantage

• Still documentation-intensive, but improving

Trend 7: ESG & Sustainability Financing

What's Happening:

• Environmental, Social, Governance (ESG) focus

• Green building standards

• Energy efficiency incentives

• Sustainability-focused lending programs

Implications for Lending:

• Michigan P2 Loans (pollution prevention) available

• "Green loans" with better terms for sustainable projects

• Energy efficiency upgrades financeable

• ESG compliance increasingly expected

Trend 8: Fintech & Banking Convergence

What's Happening:

• Traditional banks acquiring fintech companies

• Fintechs partnering with banks

• Technology enabling faster, cheaper lending

• AI underwriting becoming mainstream

Implications for Lending:

• Application processes improving dramatically

• Same-day approvals becoming normal for small amounts

• Documentation requirements may decrease

• Human relationships still matter for complex/large deals

What This Means for Your Michigan Business

Short-Term (2025-2026):

• Access to capital good for established businesses

• Competition among lenders = better terms

• Speed continues to improve

• Technology makes applying easier

Medium-Term (2026-2028):

• Manufacturing lending remains strong

• Detroit growth story strengthens

• More boutique lenders serving Michigan

• EV transition creates opportunities + challenges

Long-Term (2028+):

• Michigan economy diversification continues

• Technology sector matures

• Traditional manufacturing + advanced manufacturing co-exist

• Lending landscape more competitive (good for borrowers)

How to Position for Success:

1. Build strong banking relationships now

2. Invest in equipment/technology to stay competitive

3. Maintain strong financials and credit

4. Consider sustainability investments (future lending advantage)

5. Work with lenders who understand Michigan (like LVRG)

Frequently Asked Questions

Q: What credit score do I need for a business loan in Michigan? A: Depends on loan type. SBA loans typically need 680+. Equipment financing 640+. Working capital from alternative lenders 600+. Merchant cash advances have no minimum but focus on revenue.

Q: How long does it take to get approved for a business loan? A: Varies dramatically: Same day (MCA) to 2-3 days (revenue-based) to 1-2 weeks (equipment, working capital) to 6-8 weeks (SBA). Speed = higher cost typically.

Q: Can I get a business loan with bad credit? A: Yes, but options limited and expensive. Revenue-based financing and MCAs available with poor credit if you have revenue. Work on improving credit for better options.

Q: Do I need collateral for a business loan? A: Not always. Working capital loans can be unsecured. However, secured loans (real estate, equipment) offer better rates. Most business loans require personal guarantee regardless of collateral.

Q: What's the difference between SBA 7(a) and SBA 504? A: SBA 7(a) is flexible—working capital, equipment, real estate, acquisitions—up to $5M, 10-25 year terms. SBA 504 is specifically for owner-occupied real estate or major equipment, requires 10% down, offers below-market fixed rate on CDC portion (40% of loan), 25-year terms.

Q: How much can I borrow for my Michigan business? A: Depends on your qualifications and lender. LVRG range: $50K-$50M+. Most businesses qualify for amounts equal to 3-12 months of revenue depending on credit, collateral, cash flow.

Q: What documents do I need to apply? A: Universal: 2 years business + personal tax returns, 3-6 months bank statements, current P&L, balance sheet, debt schedule. Additional docs for specific loan types (see Application Process section above).

Q: Can I use a business loan to buy equipment in another state? A: Yes, Michigan lenders can finance equipment nationally. However, Michigan-based lenders like LVRG may prefer Michigan businesses or Michigan-based assets. Equipment location usually doesn't matter if your business is in Michigan.

Q: What's the difference between a business loan and a business line of credit? A: Term loan: Receive lump sum, fixed repayment schedule, interest on full amount. Line of credit: Draw as needed, revolving access, interest only on drawn amount, flexible repayment.

Q: Can I get a business loan if I already have debt? A: Yes, if cash flow can support new payment. Lenders calculate Debt Service Coverage Ratio (DSCR). Need 1.25x minimum (income 1.25x higher than all debt payments).

Q: Do I need a business plan to get a loan? A: Depends. SBA loans: usually yes. Working capital from alternative lenders: usually no (but helps). Equipment financing: depends on amount. Larger loans ($500K+) typically require business plan or at minimum detailed use of funds.

Q: How soon can I apply for another loan after getting one? A: After 3-6 months typically, assuming: (1) Making payments on time, (2) Cash flow can support additional debt, (3) Clear use of funds for new loan, (4) Not maxed out on existing credit.

Q: What if I'm declined for a business loan? A: Ask why specifically. Common reasons: credit issues, insufficient cash flow, lack of collateral, incomplete documentation. Fix issues, wait 3-6 months, try again. Or try different lender/product—one decline doesn't mean all will decline.

Q: Are business loans tax-deductible? A: Interest paid is tax-deductible. Principal is not. Section 179 and bonus depreciation can create significant tax advantages for equipment purchases. Consult your CPA.

Q: Can I pay off a business loan early? A: Usually yes, but check for prepayment penalties. Some loans (especially SBA) have penalties if paid off early (typically 2-3 years). Read fine print before signing.

Q: What's better: fixed or variable rate? A: Fixed = predictable payments, protected if rates rise. Variable = starts lower, risk of increases. In 2025 with rates potentially declining, variable may be attractive. For real estate (long-term), fixed usually preferred.

Q: Can I get a business loan as a startup with no revenue? A: Very difficult. Options: SBA microloans, CDFIs (Invest Detroit, ProsperUs Detroit), personal loans used for business, friends/family, venture capital. Most traditional business loans require 1+ year operating history and revenue.

Q: What's the maximum loan amount LVRG provides? A: $50,000 to $50,000,000+ depending on product and qualifications. Typical: Working capital $25K-$1.5M, SBA loans $500K-$15M, Equipment $100K-$50M+, Commercial real estate $500K-$15M.

Q: Does LVRG charge fees? A: For SBA brokerage services, we're compensated by the lender (you pay nothing extra). For direct lending products, fees are competitive and disclosed upfront. No hidden fees, ever.

Q: How is LVRG different from a bank? A: We're a boutique financing firm with direct lending capability + partnerships with 25+ lenders. You get: (1) Multiple options, not just one bank, (2) Faster decisions, (3) Personal service, (4) Michigan expertise, (5) Wide range: $50K-$50M.

Next Steps: Get Your Michigan Business Funded

You now have comprehensive knowledge of Michigan business lending. Time to take action.

Step 1: Assess Your Current Situation

Complete This Self-Assessment:

□ I know my personal credit score: _____ □ I know my annual business revenue: $_____ □ I know how much I need: $_____ □ I know what I'll use it for: _____ □ I know my business is profitable: Yes / No / Break-Even □ I have my financial documents ready: Yes / No □ I know what type of loan I need: _____

Step 2: Take Immediate Action

If Your Credit Score is Below 640:

• Focus on improving credit before applying

• Pay down credit cards

• Pay all bills on time for 6+ months

• Fix any errors on credit report

• Consider small unsecured loan (paid on time) to rebuild

• Timeline: 3-6 months to improve significantly

If Your Credit Score is 640+:

• You're ready to explore financing options

• Gather documentation

• Apply now or contact lender

Step 3: Choose Your Path

Path A: Self-Service Online Application

1. Visit LVRGFunding.com/apply

2. Complete quick online application (3 minutes)

3. No hard credit pull

4. Receive initial assessment within 1 business day

5. Discuss options with LVRG funding specialist

Path B: Consultation First

1. Call LVRG: (855) 998-5874

2. Speak with Charles Barr or senior funding specialist

3. Discuss your situation, goals, options

4. Receive guidance on best approach

5. Apply if it makes sense

Path C: In-Person Meeting (Metro Detroit)

1. Schedule meeting at LVRG headquarters 615 Griswold Street, Suite 700 Detroit, MI 48226

2. Meet with funding team

3. Discuss your business, tour of facility (if applicable)

4. Explore financing options

5. Build relationship for future needs

Step 4: Gather Documentation (While Waiting)

Get these ready so you're prepared when opportunity arises:

□ Business tax returns (2 years) □ Personal tax returns (2 years) □ Bank statements (3-6 months) □ Current Profit & Loss statement □ Current Balance sheet □ Business debt schedule □ Use of funds summary □ Additional items based on loan type

Step 5: Maintain Forward Momentum

While Your Application is Being Processed:

• Respond promptly to all requests

• Provide clear, complete information

• Ask questions if anything unclear

• Stay positive and professional

• Prepare to close (insurance quotes, etc.)

After Approval:

• Review loan documents carefully

• Ask questions about anything unclear

• Verify all numbers match approval

• Sign when comfortable

• Prepare to execute business plan

Why Choose LVRG as Your Michigan Business Loan Partner?

20+ Years Michigan Experience: Headquartered in Detroit since 2003, we've seen Michigan through economic challenges and resurgence. We understand Michigan's economy, industries, and business landscape intimately.

$1 Billion+ Funded: We've helped 10,000+ businesses access over $1 billion in financing. Our track record speaks to our expertise and reliability.

$50K to $50M+ Range: Whether you need working capital, equipment financing, SBA loans, or commercial real estate financing, we have the capacity and partnerships to deliver.

Boutique Service, Institutional Capacity: You work directly with senior leadership, not a call center. But we have the capital access and banking partnerships of a much larger firm.

Direct Lending + Brokerage: We can lend from our own balance sheet for speed, or connect you to our network of 25+ elite SBA lenders and institutional partners for optimal terms.

Michigan Industries We Serve:

• Manufacturing (especially automotive suppliers, industrial)

• Construction (equipment financing $500K-$100M+)

• Healthcare (medical equipment, practice acquisitions)

• Restaurants & Hospitality

• Retail

• Technology

• Professional Services

• Agriculture

• Transportation & Logistics

Our Commitment:

• Transparent terms, no hidden fees

• Fast decisions (days, not months for many products)

• Personal service from experienced professionals

• Long-term relationships, not transactional

• Your success is our success

Contact LVRG Business Funding Today

Phone: (855) 998-5874

Email: info@lvrgllc.com

Apply Online: LVRGFunding.com/apply

Office: 615 Griswold Street, Suite 700 Detroit, MI 48226

Hours: Monday-Friday: 8:00 AM - 5:00 PM EST

Website: LVRGFunding.com

Special Offer for Blog Readers

Mention you read "The Complete Guide to Business Loans in Michigan" when you contact us, and receive:

• Priority application review

• Waived application fee (if applicable)

• Complimentary consultation with Charles Barr or senior funding specialist

• 30-minute strategic business planning session (for approved deals $500K+)

Conclusion: Your Path to Growth Starts with Capital

Michigan's business landscape has never been more dynamic. From Detroit's resurgence to the EV revolution to manufacturing reshoring, opportunities abound for ambitious business owners.

But opportunity requires capital to seize it.

Whether you're a manufacturer needing new equipment, a contractor expanding your fleet, a restaurant opening a second location, or a healthcare practice acquiring a partner—the right financing at the right time can be transformational.

This guide has given you the knowledge to navigate Michigan's business lending landscape with confidence. You understand:

✓ Every major loan type available ✓ How to qualify and what lenders seek ✓ Michigan-specific programs and resources ✓ How to choose the right option for your situation ✓ Common mistakes to avoid ✓ How to apply and what to expect

Knowledge is power. But action is what creates results.

The next step is yours:

• Apply for financing

• Call LVRG for consultation

• Improve your credit and prepare

• Whatever makes sense for your situation

We've spent 20+ years helping Michigan businesses access the capital they need to grow. We've seen firsthand how the right financing at the right time changes trajectories—from surviving to thriving, from local to regional, from good to great.

Your business has potential. Capital unlocks it.

We look forward to being part of your growth story.

Charles M. Barr Founder & CEO LVRG Business Funding Michigan's Business Loan Authority

Phone: (855) 998-5874 Email: cbarr@lvrgllc.com Website: LVRGFunding.com

Headquartered in Detroit, Michigan Serving Michigan Businesses Statewide Lending Nationwide

About LVRG Business Funding

LVRG Business Funding is Michigan's Business Loan Authority, headquartered in Downtown Detroit. For over 20 years, we've provided $50,000 to $50,000,000+ in strategic financing to established businesses nationwide, with deep expertise in Michigan's economy and industries.

We offer:

• Working Capital & Growth Financing ($25K-$1.5M)

• SBA Loans through network of 25+ elite lenders ($500K-$15M)

• Equipment Financing, especially large-ticket ($100K-$50M+)

• Commercial Real Estate Financing ($500K-$15M)

• Revenue-Based Financing

• Business Lines of Credit

Our clients choose us for:

• Speed (days to weeks, not months)

• Expertise (20+ years, $1B+ funded)

• Personal service (work directly with leadership)

• Michigan knowledge (we understand your market)

• Options (direct lending + banking partnerships)

Founded: 2003 Headquarters: Detroit, Michigan Track Record: $1B+ funded, 10,000+ businesses served Philosophy: Relational, not transactional—we're your long-term capital partner

This guide was last updated November 20, 2024 and reflects current lending conditions, programs, and rates as of that date. Lending conditions, rates, and programs change frequently. Contact LVRG for current information specific to your situation.

This guide is for informational purposes only and does not constitute financial advice. Consult with qualified professionals (CPAs, attorneys, financial advisors) before making borrowing decisions.

LVRG Business Funding is not a bank. We are a boutique financing firm with direct lending capabilities and partnerships with banks and institutional lenders. Loan products and approvals are subject to lender criteria and underwriting.