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By Elijah Brumback | MiBiz
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MAREC Director Arn Boezaart (above) said tapping the BAF will provide more access to funds to help vet ideas for new and better energy technologies. PHOTO: ELIJAH BRUMBACK

MUSKEGON — Michigan wants to put its foot on the gas when it comes to helping small businesses developing advanced technologies, particularly in energy.

In a statewide effort, the Michigan Economic Development Corp. and the Michigan Small Business Technology Development Center have partnered to facilitate the Business Accelerator Fund.

The program includes 13 other economic development agencies and business incubators, with the Grand Valley State University Michigan Alternative and Renewable Energy Center being the most recent addition.

The BAF is a two-year, $3 million fund that will allow incubators like MAREC to access the resources on behalf of companies that present a good business case or are developing promising new energy technologies.

MAREC was able to join the program because of its location in a designated Michigan SmartZone. Its focus as an incubator to companies developing alternative and renewable energy sources made it a logical addition to the BAF, officials said.

“(MI-SBTDC) interest in MAREC was particularly because of their specialization in working with energy storage and wind energy,” said MI-SBTDC Director of Technology Services Phil Tepley. “The hope is they can help build out those industries in the area.”

Tepley said the idea is to get business on track to create more jobs — rather than a handful of research jobs — and produce a multiplier effect that spreads to other area industries.

Once a company has presented its case to MAREC, if accepted, the company will then be eligible to receive up to $50,000 in business development grants to help fund whatever services they need.

“We will be a gateway to services and resources that will help companies develop or ramp-up their technologies,” said MAREC Director Arn Boezaart. Based on what the companies’ needs are, MAREC will help facilitate anything from high-tech laboratory space to human resources, Boezaart said.

Companies such as Smart Vision Lights LLC and Michigan PACE Energy Program have already used MAREC to make connections, find resources and launch a business plan.

Unlike MAREC’s current incubator program that emphasizes startup companies, the BAF’s focus is on existing business.

According to stipulations in the BAF contract, businesses may not have raised more than $1 million in private sector funds, have no more than $2.5 million in annual revenue and must be based in Michigan.

The document states preference will be given to:

• Product-based companies with highly scalable and protectable business models
• Companies that collaborate with other Michigan companies and universities
• Companies that can create clearly identified multiplier effects
• Innovative service providers, CROs and supply chain companies that contribute significantly to a region’s technology/industry cluster or strategic plan
• Companies that leverage company founders’ and/or outside parties’ cash or in-kind resources to the proposed engagement.

Only three weeks into the new program, MAREC is in the process of signing up Grand Rapids-based The Mackinac Technology Co., which is developing window treatment technology to help mitigate heat loss for buildings with large-pane windows. Boezaart said another existing business that has spun off a bioenergy component is also looking to sign on to the program.

For MAREC, there is an immediate $30,000 in operating capital, $20,000 of which has to be spent on clients entering the program. The other $10,000 will help offset labor and special marketing expenses, Boezaart said.

“It’s not something where we can sit back and feel like we’ve arrived in fat city,” he said. “It’s just yet one more pool of funds that we can use to provide greater outreach to businesses.”

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