House Passes MI Innovation Fund

Bipartisan legislation will boost economic growth

Press Release

LANSING, Mich., Nov. 14, 2024 — In a significant move to strengthen Michigan’s economy and promote innovation, the House passed House Bills 5651–53 yesterday. The Michigan Innovation Fund package creates a new state fund to invest in early-stage businesses — including historically geographically disadvantaged small businesses — qualified nonprofit programs, and start-up support services across Michigan.

“This legislation is about securing Michigan’s economic future. We’re creating a cycle of opportunity that will generate good jobs and elevate our communities, by investing in our entrepreneurs and building a stronger foundation for local businesses — and that includes uplifting businesses owned by marginalized groups, including people of color, ” said state Rep. Jason Hoskins (D-Southfield), sponsor of HB 5652. “We need to ensure that Michigan remains a place where great ideas can thrive, and the Michigan Innovation Fund does just that by providing direct support to startups and job creators here at home.”

HB 5653, sponsored by state Rep. Alabas Farhat (D-Dearborn), prioritizes funding for “evergreen” venture funds — organizations committed to long-term growth. The bill emphasizes investment in programs that support communities, particularly those historically underserved.

“The Michigan Innovation Fund will support entrepreneurs by expanding access to transformative economic resources. It will drive job growth, support innovation, and give businesses the tools they need to succeed,” Farhat said. “We have been losing entrepreneurs to other states for far too long. This legislation provides the support that people need to establish, develop, and grow successful businesses here in Michigan.”

The Michigan Innovation Fund package now heads to the Senate for further consideration.