Governor, bank announce $800M in business loans

By Kathy Barks Hoffman Associated Press LANSING (AP) -- A southeast Michigan trucking firm and an agricultural cooperative in the northern part of the state are among nearly 1,300 small businesses that have gotten loans from Huntington Bank in the first seven months of a four-year program to make capital more available in Michigan. The nearly 1,300 businesses have received over $800 million in loans, Gov. Rick Snyder and Huntington executive Jim Dunlap announced Tuesday. The bank has pledged to loan up to $2 billion over four years. Cherry Growers Inc. President Brian Mitchell says the loan the cooperative received earlier this year has enabled the Grand Traverse County business to create and produce a new apple-based fruit snack. The plant began manufacturing the snack in August and plans to add three more production lines in January, February and July, he said. Major Michigan retailers are carrying the snacks. "We could see the growth was there for this new market segment," Mitchell said. With help from the Michigan Economic Development Corp. and the Huntington Bank loan, "we were able to put a program together that will allow Cherry Growers to ... add 93 direct jobs that will grow our base to over 250 employees, which for our region is very significant." Jim Burg of James Burg Trucking Co. said he's been able to expand his fleet and update aging trucks at his Warren-based business with the help of a loan from the bank. He plan to add about 15 workers to his existing 80 over the next six months and hopes to add 45 more jobs in five years. Dunlap, Huntington's commercial banking director, said his bank is careful about which companies get its loans. But sees a lot of potential in Michigan for additional growth. "This is a very, very positive market for us," he said, noting that the bank's business loans in southeast Michigan have tripled in the past 14 months. "We believe the state is on a significant trajectory toward economic recovery and we're going to invest into that." MEDC President and CEO Michael Finney said he estimates there's a need for $5 billion to $7 billion in loans to small and growing businesses. The state is working with other banks to encourage them to provide loans to more companies, he said. Published: Thu, Nov 3, 2011