Economic Development

Latest round of microloans funds 7 start-ups, 5 from Ann Arbor

The Michigan Microloan Fund, a program managed by Ann Arbor SPARK, has made another round of microloans to a broad range of start-ups, most of which are based in Ann Arbor. The Michigan Microloan Fund makes microloans worth between $10,000 and $50,000 to small businesses developing new technology in Michigan. The loans are meant to help augment the shrinkage of traditional financing options since the onset of the recession. One of the recipients, Grand Rapids-based FoodCircles, is using the seed capital to develop more versions of the 4-month-old's mobile apps. "The mircoloan has allowed us to try a lot of different experiments," says Jonathan Kumar, managing director of FoodCircles. He oversees a team of four employees and two interns. The Michigan Microloan Fund has made $2.8 million in microloans to 62 companies since its launch in July, 2009. This latest round of microloans disbursed $232,000 to seven company, of which five are based in Ann Arbor. Among the Ann Arbor-based start-ups to receive microloans are: - AdAdapted, a software firm developing an advertising platform for games played on mobile devices. - AMF-Nano, a bio-tech company developing innovative nano sensors. - Child Care Daily App, a mobile app business creating software that simplifies the daily activities of child care providers by doing things like automating handwritten tasks. - PicoSpray, a tech firm commercializing a low-cost electronic fuel injection system for small engines. - Weinreich Labs, a tech business developing heirloom quality amplified violins. Source: Jonathan Kumar, managing director of FoodCircles Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

U-M reduces energy usage 8.1%, utility budget by over $5M

The University of Michigan's Planet Blue operations team, a group charged with identifying and implementing energy conservation measures in the university's academic buildings, helped to cut last year's energy consumption by 8.1%, saving $4.1 million on utility bills in the process. The energy cuts exceeded the university's goal of 5%, according to Rich Robben, U-M's executive director of plant operations. The savings equates to a reduction of 17,800 metric tons of carbon emissions, comparable to removing 3,562 vehicles from the roads, according to the university. "Last year's utility budget was $64 million, so we've been able to reduce it. This year, our utility budget is going to be reduced to below $59 million," Robben says. "That translates right back to the schools' and colleges' costs. This is a direct hit on the expenses that go into determining whether you need to increase tuition or not. This helps keep tuition rates down." Over the last four years, the Planet Blue team has evaluated and implemented energy conservation measures in 137 academic buildings, such as installing occupancy sensors in conference rooms and updating controls for heating, cooling, and ventilation systems. Planet Blue is also assigning teams to various groups of buildings. Those teams will communicate with occupants as to sustainability measures they can take. "University communities are very transient. Your students are changing over every four years, so you're in this mode of continually trying to raise awareness to make sure everybody knows what's going on and what they can do," says Robben. Source: Rich Robben, U-M's executive director of plant operations Writer: Tanya Muzumdar

Ypsilanti DDA kicks off next $40k round of facade improvement grants

Another round of Ypsilanti storefronts will be getting assisted facelifts with a new round of grant money from the city's Downtown Development Authority (DDA). At its meeting last week, the DDA's board of directors approved the latest installment of the Façade Improvement Program, which will award grants totaling $40,000 for eligible projects through the end of the 2012-13 fiscal year. The Historic Downtown is to receive a $20,000 allocation, while Depot Town and West Cross St. - Campus Town will get $10,000 apiece. The DDA will match 50% of qualifying project costs, up to a maximum of $2,500 per grant. At least 16 businesses stand to benefit. Washtenaw County's Eastern Leaders group has put $7,500 towards the program, with the balance coming from the DDA. Only exterior beautification projects such as painting, new awnings, signage, brick repair, parapet repair, or replacement windows will qualify. The program is now in its second year. Tim Colbeck, director of the Ypsilanti DDA, would like to see this grant be a perpetual fund. The monies are separate from the DDA's building rehabilitation grant program, which also allows for interior work. "The larger grants, where we're talking about building rehabilitations, we know there are certain buildings in town that are either in a state of disrepair or they're being underutilized and they could really use some heavy investment. At some point in time there's an assumption that we won't have any more of those buildings," Colbeck says. "But when it comes to façade improvement there's almost always going to be a steady stream because people are going to want to replace awnings. A new business is going to come in and say, we want a new sign." Last year's projects included a new sign for Model K, a sign and awning for Old Towne Coin & Gold in Depot Town, and gooseneck exterior lighting for Red Rock Downtown Barbecue. Funds are available to both property and business owners. "So if you are a business owner and you rent, you can still apply for the grant," Colbeck says. Written permission to do the improvements from the property owner is required. Applications are being accepted now through June 30, 2013, and will be reviewed by the DDA on a rolling basis. Source: Tim Colbeck, director of the Ypsilanti DDA Writer: Tanya Muzumdar

Johnston Agency opens in Dexter, adds 5 insurance jobs

In the aftermath of Dexter's tornado last spring, a new services business has sprung up. Allstate Insurance agent Jennifer Johnston has opened Johnston Agency at 8071 Main Street in downtown Dexter. The office is located in a historic purple-painted building which formerly housed the Dexter Leader newspaper. Johnston, a licensed insurance agent, was looking for a business location with a small-town feel, where people look out for each other. Inspired by the quick reaction of Allstate personnel to the tornado: "They were there before the Red Cross," and the manner in which the village pulled together afterward, Johnston says, "we wanted to be part of the Dexter community." The office opened in early September with three insurance agents and an office manager. Johnston plans to add one or two more agents and telemarketing personnel. "We're already expanding," she says. Source: Jennifer Johnston, owner, Johnston Agency Writer: Tanya Muzumdar

AMF-Nano leverages microloan to help commercialize tech

A small Ann Arbor-based bio-tech start-up recently received a little infusion of cash, with which it expects to make a big splash next year. AMF-Nano recently received financing from the Michigan Microloan Fund, where the microloans usually average about five figures in size. The 3-year-old start-up plans to use that money to continue the development of its innovative nano sensor that could help detect heart attacks and be implanted in pacemakers. "There is a need for instruments to be smaller, cheaper and better for the human body," says Rakesh Kapragadda, president & chief scientist of AMF-Nano. The two-person team is working out of the University of Michigan's Kellogg Eye Institute where it is developing a smart sensor system. That system could be used by cardiac patients to help self-monitor their own heart for signs of heart attacks instead of habitually visiting medical centers for checkups. Another version of the platform could be used in pacemakers. "All of the funds will go toward the commercialization of these technologies at the University of Michigan," Kapragadda says, adding he expects his start-up to commercialize the technology within six months. Source: Rakesh Kapragadda, president & chief scientist of AMF-Nano Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

U-M offers student course that explains its own finances

Let's say you're a student at the University Of Michigan, and you're wondering why your tuition is what it is. Well, now there's a course for that. Excerpt: "Fifty-six students are registered this semester for "The Challenge of College Affordability: Financing the University," a series of seven two-hour lectures taught by top administrators at the public university. The course, geared toward sophomores, is designed to explain where the school gets revenue, what drives its costs and how that translates into tuition rates and financial-aid packages." Read the rest here. 

Dare to Dream grants send $28.5K in seed capital to U-M start-ups

Ann Arbor has the cutest street art

Blink and it's gone. Ann Arbor artist and street quirkmaker David Zinn catches the attention of a UK writer with his delightful chalk drawings. Excerpt: "David Zinn makes streets a little brighter, if only for a few hours. The chalk artist has become known in his hometown of Ann Arbor, America, for his brightly coloured little creatures dotting the pavement. Zinn, who has been "drawing for as long as [he] can remember", started the project because he wanted to create "something absurd, anonymous and temporary"." Read and see the rest here. 

20 years of murder and mystery

It's murder most foul in downtown Ann Arbor every day of the week at Aunt Agatha's bookshop. And this oasis for mystery devotees in celebrating two decades of poisonings, stabbings, shootings, and whatever fatal deeds villains hope to get away with. Excerpt: "When asked her thoughts on the store's success, Agnew said that she and her husband had created not just a store, but a "community space." "We're small. We know our customers," she said. Agnew added that they are careful about how much inventory they keep and tend to order one copy of a new book at a time." Read the rest here.