Article Summary –
The White House has announced over $1 billion in funding to aid small and underserved auto manufacturers in transitioning to the electric vehicle market, focusing on historic auto communities in Michigan. This includes the Michigan Auto Supplier Program, which offers financial, legal, and other support services, and a $1 billion “Drive Forward” fund by Monroe Capital to provide lower-cost capital to small and medium-sized manufacturers. These initiatives are part of the Biden-Harris administration’s broader clean energy agenda, aimed at boosting American industry and manufacturing capacity, particularly in underserved communities like Detroit.
The White House announced on Sept. 23 that over $1 billion will support small and underserved auto manufacturers transitioning to electric vehicle production.
With a focus on historic auto communities in Michigan, the investments will fund two new initiatives: one to assist auto manufacturers with support services and another to help grow businesses at lower costs.
The federal government has initiated various programs and funding opportunities to boost electric vehicle and battery production as part of the Biden-Harris administration’s clean energy agenda. This announcement comes just over four months after Vice President Kamala Harris visited Detroit to announce that small- and medium-sized auto manufacturers in Michigan would receive federal aid for retooling or expansion.
“I believe in an economy where everyone has a chance to compete and succeed. Investing in our people is the best way to grow the American economy and the middle class,” Harris stated. “For too long, we’ve seen a lack of investment in communities, particularly those with historic manufacturing expertise like Detroit.”
The Michigan Auto Supplier Program will provide underserved businesses with financial, legal, accounting, and other support services to help shift from traditional vehicles to the electric vehicle supply chain. The U.S. Department of the Treasury allocated $9.1 million for the program, overseen by the Michigan Economic Development Corporation.
Additionally, Monroe Capital, a Chicago-based investment firm, committed to raising up to $1 billion for a fund providing small- and medium-sized auto manufacturers with cheaper capital access. The “Drive Forward” fund, supported by the Small Business Administration’s Small Business Investment Company program, targets companies needing additional capital to increase manufacturing capacity.
The White House highlighted record investments in industry and infrastructure under the Biden-Harris Administration, including $28 billion for clean energy and manufacturing in Michigan.
Harris, endorsed by the United Auto Workers and Joint Council No. 43 of the International Brotherhood of Teamsters, stated: “Earlier this year, I announced new support for small- and medium-sized auto suppliers in Detroit. Today’s announcements build on those investments, keeping our auto supply chains in America, strengthening our economy, and retaining more auto jobs in Detroit.”
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