TechTown has locked down an agreement with Bank of Ann Arbor that will help fund the operations and support side of the build out of its newest small business incubator space and create the potential for financing for the startups that will call it home.
The downtown Ann Arbor-based bank has made an undisclosed loan to the Detroit-based business accelerator that will pay for the operations and administrative costs of the build out of TechTwo. TechTown is lining up funding to turn the old Dalgleish Cadillac dealership in New Center into TechTown's second business incubator. TechTown is still lining up the rest of the financing from a combination of foundations and federal grants so it can begin transforming the 111,000 square feet early next year.
"This is a huge development," says Randal Charlton, executive director of
TechTown. "I don't know of any other bank that has invested in Detroit in, goodness, I don't know how many years. Money is what drives growth in business."
He adds this new relationship between
Bank of Ann Arbor and TechTown also promises to open up a new funding source for firms in the business accelerator. Bank of Ann Arbor has made a name for itself by providing financing to Ann Arbor-based startups and expects to expand on that reputation with its new relationship with TechTown.
"We can't do this all on our own," Charlton says.
Source: Randal Charlton, executive director of TechTown
Writer: Jon Zemke
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.