LANSING - State Representative Dudley Spade (D-Tipton) today announced that the Deerfield based Hybra-Drive Systems (HDS) has been awarded $3.3 million from the 21st Century Jobs Fund to continue to compete in the market of advanced automotive technology. This money will allow HDS to create nearly 200 new direct and indirect jobs for Michigan workers. As part of the plan, HDS has been actively competing for grant funds in order to accelerate the completion of the national Hybrid Truck Users Forum award won by HDS in February 2008. The plant is in the process of developing a new transmission designed to run up to 60% more efficiently than a traditional transmission.
"HDS is proof that the resources for rebuilding our economy are already in place right here in our state." Rep. Spade said. "By supporting the innovation of Michigan's citizens and the strength of our workforce, we can and will rebuild Michigan from the inside. We must develop constructive partnerships with entrepreneurs in order to create the jobs of tomorrow, jobs that will stay here and drive our economy."
The 21st Century Jobs Fund awards were made to companies in the later stages of development ready to create jobs in the competitive-edge sectors of alternative energy and advanced automotive among others. The 21st Century Jobs Fund is a $2 billion, ten-year initiative proposed by Governor Granholm, approved by the Michigan Legislature, and administered by the Michigan Economic Development Corporation. The first round of funding in 2006 resulted in the award of $126.3 million to 78 organizations now engaged in high-tech research, commercializing new products, and creating new jobs.
"In this second round, we targeted our resources on technology businesses that are ready to gear up and create new, high-tech jobs in the near term," MEDC President and CEO James C. Epolito said. "This will have an immediate impact on our economy and continue to build on the momentum generated by previous 21st Century Jobs Fund recipients."
Michigan-based peer review service providers National Center for Manufacturing Sciences and Business Engines Inc. conducted an independent peer review process which called for evaluating proposals based on commercialization merit, scientific and technical merit, management team strengths and ability to leverage additional funding, as well as near-term job growth, among other factors. The agencies made funding recommendations to the SEIC board.
Awards will be in the form of loans or convertible loans at the discretion of the SEIC board. Due diligence will be conducted prior to finalizing each award to ensure a company's ability to meet the terms of its contract. Each of the awards will be administered by the MEDC with contracts that establish conditions and mileposts for receipt of funds. MEDC portfolio managers oversee the progress of the awards working closely with awardees to advance and grow their businesses and create jobs. Award funding will be paid out incrementally as agreed upon milestones are achieved. The contract and funding process will be overseen by the chief compliance officer; a position required by the 21st Century Jobs Fund legislation.
The SEIC board is responsible for administering grants and loans to support competitive-edge technology investments under the 21st Century Jobs Fund, specifically the targeted sectors of life sciences, alternative energy, advanced automotive materials and manufacturing, and homeland security and defense.
Details of the awards are available at: http://www.themedc.org/21CBizPlan/.