Start-ups Ergun Technology and Local Orbit score microloans

Start-ups from Ann Arbor and Ypsilanti took two of the three loans announced by the Michigan Microloan Fund Program earlier this week.Ypsilanti-based Ergun Technology and Local Orbit (Ann Arbor) received loans, along with Detroit Electric. The three start-ups will split $140,000 in funding. Each microloan runs anywhere between $10,000 and $50,000. Own is the principal product for Ergun Technology. Own connects cash registers to the Internet, providing store owners real-time remote access to their transactions. The 4-person firm plans to use its loans to complete Beta testing of its product and begin marketing it to coffee shops across the state. “Our goal is to have 200 locations using our system by the end of 2011,” says Verdi Erel Ergun, president of Ergun Technology and a former eatery owner. Local Orbit is creating a web platform that simplifies the process of buying food directly from local farmers for restaurants, institutions, and consumers. The state-created Michigan Microloan Fund Program provides seed capital to growing new economy start-ups. The $1.4 million program, which is run by Ann Arbor SPARK, became instantly popular because of the lack of financing available in the wake of the financial crisis. Source: Verdi Erel Ergun, president of Ergun Technology and Ann Arbor SPARKWriter: Jon Zemke