11/14/2011 05:01 pm ET

Michigan Democrats Push Small Business Hiring, Loan Incentives

Lansing Democrats are rallying behind legislation in the House of Representatives designed to spark growth for small businesses and hire out-of-work Michigan residents.

Businesses that hire unemployed workers could receive up to $4,000 in tax credits per individual, if one measure passes. Companies hiring military veterans would get the most credits, according to the Free Press.

"Small and medium-sized businesses are the engines that drive our economy and provide jobs to our citizens," House Minority Floor leader Kate Segal (D-Battle Creek) told the Detroit News.

State Democrats also support a package of bills to create a pool of funds to loan to small businesses.

"We know that very small loans of between $100,000 and half a million can often make a huge difference for these small businesses," Rep. Vicki Barnett (D-Farmington Hills) who sponsored the series of bills with Segal, told the Detroit News.

The loans would be offered through Michigan credit unions and local banks and would be paid for through small investments of state trust funds, the Free Press reports.

Segal submitted the loans measures last week and referred them to the House Committee on Banking and Financial Services. The hiring incentives legislation will be introduced after the Thanksgiving break.