MACKINAC ISLAND — Michigan’s businesses will have new ways to buy and sell, raise capital and connect with each other through Pure Michigan Business Connect.

The new $3 billion public-private initiative, announced by Gov. Rick Snyder with top business leaders June 2 at the Mackinac Policy Conference, strengthens the administration’s economic gardening philosophy through an alliance of the Michigan Economic Development Corp. (MEDC), State of Michigan agencies and major Michigan companies and organizations.

“Pure Michigan Business Connect is the cornerstone of a new toolkit for economic gardening we are developing that’s built on Michigan’s broad asset base of strong corporate enterprises, innovative entrepreneurs and rich technology resources,” Snyder said.

For years, growing Michigan startup and second stage companies have struggled with the challenges of finding the right talent and access to capital, said Snyder, who personally helped nurture growing companies in his years as a venture capitalist and business executive.

Pure Michigan Connect matches people with resources, strengthening relationships to fuel economic growth.

Initial program participants include State of Michigan agencies, Huntington National Bank, Consumers Energy, DTE Energy, Stage 2 Innovations, Automation Alley, Export Import Bank and economic development partners who joined with the MEDC in making the announcement at a news conference during the Mackinac Policy Conference, sponsored by the Detroit Regional Chamber.

The Pure Michigan Business Connect Web site, www.MichiganAdvantage.org/businessconnect, begins with the following offers from the participating organizations:

• State of Michigan — Eliminated the jobs killing Michigan Business Tax and replaced it with a simple, fair, flat 6 percent Corporate Income Tax. This jobs creation tool will give companies certainty of the tax structure in Michigan and will level the playing field to allow all business and industries to grow and create jobs. Nearly 100,000 small and medium businesses, including partnerships, sole proprietorships and limited liabilities corporations, will no longer be taxed twice and will simply pay taxes on their business profits under the individual income tax; and providing training and tools to maximize contract opportunities for Michigan companies through its Contract Connect and other state procurement programs.

• MEDC — Offering $100 million in economic development incentives, $25 million for entrepreneurship and innovation programs that provide capital and support services to early stage Michigan businesses. Through its Michigan Collateral Support and Loan Participation Programs: offering $80 million to generate an additional $800 million in Michigan bank loans for Michigan businesses.

• Huntington National Bank — Committed $2 billion in lending over four years for commercial and small Michigan-based companies, the largest commitment to date for the program.

• Consumers Energy — Pledged to dedicate an additional $250 million over five years to purchase goods and services from Michigan-based suppliers.

• DTE Energy — Pledged to dedicate an additional $250 million over five years to purchase goods and services from Michigan-based suppliers.

• Stage 2 Innovations — Private investment group headed by former Chrysler Corp/Chief Executive Officer Tom LaSorda — working in conjunction with Automation Alley — pledged  $100 million for second stage fund for Michigan businesses with innovative technologies to accelerate large-scale commercialization.

• Export Import Bank — Committing to work with the governor and MEDC to more than double the dollar value of its investment deals with Michigan-based small businesses to $187 million by 2015 from $75 million in 2009. In addition, Ex-Im is pledging to do a Global Access for Small Business Forum in Michigan.

Joining Snyder at the announcement were MEDC President and CEO Michael Finney, Huntington Bank Chairman, President and CEO Stephen D. Steinour, Consumers Energy President and CEO John Russell, DTE Energy President and CEO Gerry Anderson and Business Leaders for Michigan President and CEO and MEDC Chair Doug Rothwell.

“This is an invitation to Michigan’s business community, companies that have supply needs or funds to lend and those that are looking for new opportunities, all are encouraged to join Pure Michigan Business Connect,” said Michael Finney, MEDC President and CEO. “Transforming Michigan’s economic ecosystem requires the broad involvement of our state’s business community — our largest, most prominent companies along with the newest and least known and those of all sizes and sectors in between — working with local and state economic development agencies.”
The State of Michigan’s Contract Connect Web site for contracts and procurement provides information on more than 1,000 state contract opportunities, along with instructions on how to register and bid on these contracts.