Michigan Business Development Program (MBDP)
Michigan Economic Development Corporation (MEDC)
$10,000–$10M+ (negotiated)
Michigan's flagship economic development grant
Michigan's primary performance-based economic development incentive — discretionary cash grants or loans to businesses creating or retaining jobs in Michigan, administered by the MEDC. MBDP is the successor to Michigan's former MEGA tax credit program and targets business attraction, retention, and growth projects with significant economic impact. Awards are negotiated on a project-by-project basis and require MEDC Strategic Fund Board approval. The program is particularly active in advanced manufacturing, mobility/EV, and business services sectors.
- Funding type
- Grant
- Level
- State
- Amount range
- $10,000
- Realistic amount
- For a company adding 50–100 Michigan jobs at or above county median wages with $5M+ capital investment, MBDP awards typi…
- Deadline
- Rolling — MEDC Strategic Fund Board meets monthly; applications evaluated on a rolling basis.
- Status
- active
- States
- MI
- Payment model
- milestone
Who qualifies
- Business must create a minimum of 1 net new full-time Michigan job (highly flexible minimum — effective threshold based on economic impact)
- New jobs must pay at or above county median wages (MEDC targets projects paying competitive wages for the region)
- Project must involve a capital investment in Michigan — the amount required scales with the grant size requested
- Business must demonstrate the project is 'but for' the MBDP grant — without the incentive, the project would not proceed in Michigan or would locate elsewhere
- Application must be submitted and approved before the company commits to the Michigan location
- Virtually all for-profit business types are eligible — MEDC has broad sector discretion
- Project must receive endorsement from the local unit of government (city or township) where jobs will be created
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- MBDP is a discretionary cash grant — no restriction on use once milestones are met
- Capital investment in Michigan facilities, equipment, and technology
- Workforce recruitment and training costs
- Site preparation, construction, and leasehold improvements
- New full-time Michigan employee wages and benefits (used as performance metric)
Ineligible expenses
- Projects that relocate existing Michigan jobs rather than create net new positions
- Retail operations without significant export-base economic impact
- Projects committed to Michigan before MBDP approval
- Government entities and nonprofits
- Projects primarily involving real estate development without operational job creation
How to apply
-
1
Contact MEDC and submit project overview
Reach out to MEDC's Business Development team with a project overview — nature of expansion, job count, wages, capital investment, and timeline. MEDC assigns a project manager who will advise on likely award size and required documentation.
~4 hrs
-
2
Secure local government support resolution
Obtain a resolution from the local unit of government (city, township, or county) where jobs will be located expressing support for the project. This is a required component of the MEDC application.
~8 hrs
-
3
Submit MBDP application
Complete the MBDP application with company financials, detailed project description, job-creation plan (titles, wages, hire schedule), capital investment plan, 'but for' certification, and local government resolution.
~20 hrs
-
4
MEDC staff review and negotiation
MEDC staff evaluate the project and negotiate the grant amount and performance agreement terms — job milestones, wage floors, capital investment requirements, and grant payment schedule.
~0 hrs
-
5
MEDC Strategic Fund Board approval
MEDC staff present the project to the Michigan Strategic Fund Board at a public monthly meeting. Board votes on approval. Companies may attend and present briefly if desired.
~3 hrs
-
6
Execute grant agreement and meet milestones
Sign the MBDP grant agreement specifying annual job, wage, and investment milestones. Grant funds are disbursed in tranches tied to verified milestone attainment. MEDC conducts annual compliance reviews.
~4 hrs
MEDC is active and relationship-oriented — calling a regional project manager before submitting is strongly recommended. The local resolution requirement is the hidden step many companies miss; start that conversation with your local EDO early. MEDC is especially aggressive on advanced manufacturing, mobility/EV supply chain, and life sciences — projects in these sectors tend to receive faster processing and stronger offers.
Deadline & timing
Companies should engage MEDC early in their site-selection or expansion process. Applications must be received and conditionally approved before the company makes a binding commitment to the Michigan location. MEDC staff review and present projects to the Strategic Fund Board at monthly public meetings. Full process from initial inquiry to board approval typically takes 2–4 months.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.