Fifth Third Bank Gives Michigan Pure Business Connect $2.5 Billion Boost

Fifth Third Bank has pledged to make $5 billion in loans available in Michigan in 2012.

That includes $2.5 billion for the Pure Michigan Business Connect (PMBC), a collaboration between state government and Michigan businesses that encourages cooperation in commerce and new approaches to trading goods and raising capital.

The new influx of capital, more than doubles the $3 billion already available through the PMBC, according to a press release from the State of Michigan.

"The recovery of Michigan is vital to our growth," said Fifth Third's Senior Vice President and Marketing Director Jack Riley in Crain's Detroit Business.

David Girodat is the president and CEO of Fifth Third Bank of Eastern Michigan, headquartered in Southfield. He said the bank will be looking "across the board" in terms of size and type of businesses receiving loans, according to Crain's.

The rest of money will go toward consumer loans. Girodat told Crain's report that 60 percent of those loans will be mortgages, including new home purchases and refinancing, and 40 percent will be auto, credit card and home equity lending.

"Fifth Third's participation in Pure Michigan Business Connect represents a huge commitment to Michigan's businesses," Gov. Rick Snyder said in a release. "It significantly adds to the economic gardening toolkit we are developing to grow our state's economy."

At a Friday conference in Novi, Snyder used news of the bank's commitment as opportunity to repeat his view that government should create an environment friendly to businesses and then stay out of their way, Crain's reports.

“Our role is not to create jobs, nor is it to pick winners and losers," Snyder said. "It’s about Michigan’s comeback. The solution is right here with Michiganders themselves.”

The PMBC has had nearly 700 businesses sign onto its services since the program began in June.

Huntington Bank pledged $2 billion to the program earlier this year.

Comments

[Eddie VanderMolen]

03:13 PM on 11/20/2011

Gosh, if I got a 0% loan from the fed, like many big banks did, I could start up a small business. Too bad it doesn't work that way. I'd be curious what they consider "small" business. Businesses with 500 or less employees. What about those businesses that have less then 100 employees, or less than 20. How much money will they see. What about start-ups? Michiganders have some really good ideas, just ask any one of them but, will anyone loan them venture capital. HIghly doubtful. Banks, so eager to lend you an umbrella in the sunshine only to take it back when it starts to rain.

[rdsnnb]

10:53 AM on 11/20/2011

The Feds piss away 5 million everyday by lunch.

Bear in mind that Detroit is in Michigan.....and if that doesn't tattoo the state as having it's political head up it's butt....nothing ever will.

[Hotspot]

11:57 PM on 11/19/2011

Fifth Third Bank has pledged to make $5 billion in loans . . . I'll believe it when they do. If, any are made they'll go to Snyder's buddies, and NOT small business. Recall Snyder!

[edmundavolio]

08:40 AM on 11/19/2011

All the hype about job creation is a pipe dream.
Unless products SOLD in the US are subject to the same constraints as products MADE in the US, there will be no job creation in the United States of significant effect.. Small businesses thrive when big business payrolls provide discretionary spending money. It could be that just requiring products SOLD in the US be made with the mandated Federal Minimum wage would allow some portion of domestic production of goods and services to be revived in the US.
If products SOLD in the US were subject to Environmental and Safety (OSHA) mandates, even more US jobs would be created. If all US mandated constraints on domestic production were required by offshore producers, the US could possibly be the economic power house it was in most of the 20th Century.
I submit that unless repressively low wages are not tolerated for products SOLD in the US, there can be no economic recovery.

[freerangevoter]

12:18 PM on 11/20/2011

Turning away low cost products is not the answer for a family and it is not the answer for the country. We each need to produce more and the fastest way to get there is to reduce the taxes and regulation that make operating a business in the USA much more difficult than in many parts of the world.

[edmundavolio]

06:46 PM on 11/20/2011

How much faster must a US worker work to overcome $1.17/hr. in China and 50 cent/hr. in Indonesia. Even if there were no taxed on US companies, it would not induce them to produce in the US when they can pay wages 1/5 to 1/10 with no SS or Medicare deductions, no worker safety laws, no child labor laws and no environmental laws. By the way, add the cost of the loss of your home value to the cheap imports plus the loss of your 401K. This would be the true cost of cheap products made by worker and environmental exploitation. Lower taxes and less regulation are a physic out such concessions will still not make up for low wages etc.

[Eddie VanderMolen]

03:22 PM on 11/20/2011

With retailers like Walmart demanding a 5% decrease in cost a year if your product doesn't increase technology, how can manufacturers maintain livable wages for its workers? The answer is, it can't. If I'm a scissor manufacturer and I finally land that Walmart account, I take a 5% cut every year. Compound that with the cost of health care and you get a prescription for low wages and benefits and ultimately jobs going overseas. This is a matter that needs legislation. We NEED laws protecting jobs. There's just no bones about it.

[edmundavolio]

06:49 PM on 11/20/2011

You are right you can't. Your Congressional leadership and President know this but the Multinationals pay them too much for them to change. There is no money for an honest congressperson. I wish the 20 million unemployed and the millions more to be unemployed would realize this and vote the leadership and followers out.

[Muzzle Me]

02:49 AM on 11/19/2011

And where will a majority of that money go to for small businesses? Can you say Grand Rapids and other Republican enclaves . Just like they got the bulk of the money for mass transit from the gov too. Recall him.

[rdsnnb]

10:54 AM on 11/20/2011

that is a really hot thirty year old pic...:)

[Eddie VanderMolen]

03:31 PM on 11/20/2011

There does seem to be that whole story of rewarding the one's who were faithful doesn't there? What else do you expect form a party of thugs. However, as Michiganders we do need to end the animosity between west and Detroit. It was actually a really good thing that GR got transit funding. Believe it or not and despite popular opinion or mainstream reporting the west side of the state as been hit just as hard or harder. They're just all too stupid to realize that the GOP doesn't have their best interests at heart. The NEED for public transit has increased tremendously in GR. Many people are getting by with 1 car or no car because they can't afford it.