Wednesday, September 2, 2020

Governor Whitmer 09-03-20 COVID Update and Huntington Bank $5 Billion Minority Investment

Good new for Michigan small businesses as a Huntington Bank launches $5 billion in small business investments focused on female, veteran and minority owned businesses. You will want to read "Huntington Bank launches $5 billion lending initiative in Michigan" to gain more information on the details. Overall it seems like a pretty good philanthropic thing to do. Investments do lead to rejuvenated neighborhoods and increased profits by tapping people's natural desires to strive.

Who says money can't make a big difference? The desire to investor or not invest in neighborhoods and communities can make a big difference. I see a lot of communities that are ripe for investment but never put together the right strategy for connecting to broader markets. Offering community based lending is one way in which Huntington Bank can help a community. 

As a side note, I would personally like them to advocate a little for product creation that sells to the global market and enhances local manufacturing infrastructure. 

Financing small business through low interest loans focused on building clusters of small businesses that have the most chance to succeed can be an amazing boost for the state. Small business is what brings back our neighborhoods but also increases short and long term development of business within the state.

Small business often struggles with access to capital (i.e. loans) that can work with them and the nature of a new business start-up. That represents increased risk with possible higher rewards for investing in this sector. Making a commitment to developing small business means accepting increased risk for a social improvement program.

Money does make things happen and can be a useful tool for our communities. I would still like to see small business loans to improve Escanaba's small downtown district which has great potential for tourism and tourist related micro manufacturing. Matching that with a shipping/distribution center that services regional industries and you have enhanced an export oriented tourist cluster.

You will want to read their September 1st, 2020 Press Release of Huntington Announces $20 Billion "Community Plan to Help BoostEconomic Opportunity Throughout its Seven-state Footprint

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