Michigan Launches $500 Million SOAR Fund to Boost Business Growth and Job Creation

The term “soar” is often associated with rising above or exceeding expectations. Michigan has applied this concept to its SOAR Fund, the Strategic Outreach and Attraction Reserve Fund. This fund was designed to give Michigan a competitive advantage for significant projects. In 2024, the state has allocated $500 million to the SOAR Fund. Additionally, the SOAR Fund provides opportunities through the Critical Industry Program (CIP), which aims to support the growth of businesses.

CIP was created to help bridge the gap for projects that aim to make significant capital investments or retain qualified jobs due to technological advancements in production. Eligible capital investments for this grant include infrastructure improvements, the purchase or acquisition of heavy machinery, and job training initiatives. Ideal projects for the CIP are primarily in the manufacturing or logistics sectors and energy-efficient projects. It is important to note that qualified roles under the CIP are intended for Michigan residents or individuals from other states who are employed by a business located at a project site within Michigan.

Several factors are considered when evaluating the award from the CIP. These factors include, but are not limited to, the project’s location, its potential for additional community impact, community support, and financing. As written agreements are prepared, specific obligations—such as job retention or creation—must be met to avoid clawback provisions. Failure to comply may result in the repayment of all incentives granted.

In addition to the SOAR Fund, businesses in Michigan can take advantage of several incentive programs, including the Michigan Business Development Program, the New Jobs Training Program, and PA-198. Similar to CIP, these initiatives support businesses interested in making capital investments, creating new jobs, or developing training programs. Companies looking to expand in Michigan may be eligible to receive between $5,000 and $15,000 for each new job created, along with up to $2,000 to cover training costs for each employee.

If your clients are interested in investing in Michigan, they may qualify for various incentives. McGuire Sponsel’s Location Advisory Services team can assist your clients in navigating the application process and managing post-project reporting to help them maximize their benefits.