Milestone arrives as the nonprofit lender is celebrating 30 years of supporting Michigan small businesses
Northern Initiatives, a nonprofit lender supporting small businesses in Michigan, has reached $100 million in loans provided to small businesses just as it is celebrating its 30th year.
From the first loan to a sawmill in Sawyer, Mich., that continues to thrive, to the loan that put the Community Development Financial Institution (CDFI) over the $100 million mark, Northern Initiatives has provided capital and business services to more than 1,600 businesses in Michigan and parts of Wisconsin.
A loan to Millie’s Farms, above, a woman-owned family farm in Big Prairie Township near Newaygo with a mission to support local food and humanely raised meat, put Northern Initiatives over the top. Amelia “Millie” Richardson farms nearly 100 acres with her husband Trevor and their six kids. Their farm-to-table market is also fulfilling a much-needed service – providing healthy food where the nearest supermarket is five miles away – “and expensive,” Millie Richardson says.
“These small businesses are the heart and soul of Michigan,” said Elissa Sangalli, CEO of Northern Initiatives. “They’ve created more than 7,000 jobs, built generational wealth, and helped our communities become more resilient.”
The largest loan Northern Initiatives has ever made is $1.8 million, but the average loan is $59,900, making the $100 million mark even stronger. “The smaller loans are vital,” said Sangalli, “and have helped so many entrepreneurs start and build businesses that continue to grow and thrive.”
With a client list that includes such Michigan legends as Cherry Republic, Stormy Kromer, and PotlatchDeltic, there’s basically a Northern Initiatives customer in every county – and in many communities, one on every block. “And our customers are our best referral system, too, which shows we’re doing it right,” said Sangalli.
Northern Initiatives’ recent loans reflect its presence literally from the top to the bottom of the state. Nisu Bakery and Café, in downtown Hancock, is owned by Irma Boyd, a Finnish immigrant making Finnish food in a county where 35% of the population is of Finnish descent. Using funds from the Fremont Area Community Foundation, Northern Initiatives helped Brittany Magnusson buy a building to keep the Evart Daycare and Learning Center open. A score of partnerships helped Sean Hollins buy RJ’s Printing in Kalamazoo, right, the business where he got his own start in graphic design.
Created as a program at Northern Michigan University to help build economic resiliency in Michigan’s Upper Peninsula, Northern Initiatives now has customers in all 83 counties in Michigan. The partnership between ShoreBank Corp. the first mission-driven community development bank, and NMU that formed Northern Initiatives was the first of its kind between a bank and a major university.
Northern Initiatives embarked upon a geographical territory expansion in 2008, adding the 31 counties in the Lower Peninsula. The northern Lower Peninsula was rural, like the UP, and not served by a CDFI. In 2018, Northern Initiatives expanded into southern Lower Michigan, reinforcing support for urban small business ownership that more accurately reflects the region’s population.
