The Business Accelerator Fund (BAF) provides funding to a participating Accelerator to help early-stage advanced technology companies access specialized services to advance their path to commercialization, company success, and economic impact. Overall, a company may not receive more than $75,000 in BAF services over the company's lifetime. Most companies have multiple engagements in the $7,000 to $15,000 range. 

Who qualifies for the BAF?

Before contacting the nearest participating business accelerator, below are the following qualifications: 

• Must be technology-focused and early-stage advanced 
• Must be based in, or have a principal location in, Michigan with at least 51% of employees located in Michigan
• Must be privately held, for-profit, and defined as a small business by the Small Business Administration 
• Must have less than $1M private sector investments and less than $2.5M revenue in last 12 months 
• Must agree to complete semi-annual BAF economic impact/client satisfaction surveys for five years 
• Must be compliant with the MEDC and any other state programs 

Applicants must serve one of the following industries:

• Advanced Automotive & Mobility
• Advanced Manufacturing & Materials
• Agricultural Processing Technology
• Alternative Energy
• Homeland Security & Defense Technology
• Information Technology
• Life Sciences - Therapeutics & Med Devices
• Other Innovative Technologies

What services does (and doesn't) the BAF support?

The BAF funds should be a bridge to a key milestone of some kind that could not otherwise be achieved by the company. While the list of available services is comprehensive, there are some that are not supported by BAF. Tasks like bookkeeping, tax preparation, founder salaries, general company expenses or advertising, and other high level internal projects are not among the list of expenses that can be covered.  

• Develop marketing plans
• Conduct market study/market research
• Develop financial model
• Develop test units for beta test
• Cover legal costs for: strategic licensing agreements, bringing on key employees, or equity agreements with C‐level talent
• Logo design

• Technology validation/product testing
• Conduct patent search
• Regulatory consulting
• Technology consulting
• Engineering services

What is the timeline?

BAF is not easy money for entrepreneurs. It takes time to complete proposals for submission and go through the MEDC's process, with most applicants seeing release of funds three to six months from the start of the application process.

While not every applicant receives approval for services, those that do benefit from having services paid on their behalf, rather than paying out of pocket.  

What is the application process?

1. The business completes various paperwork for the Hub and obtains a fixed-price quote for allowable services.
2. The Hub and business owner complete the BAF application form. Depending on the size of the engagement, this may include writing a 5-page executive summary of your business plan that is custom-tailored to the BAF review process.
3. The Hub applies for approval of funds with the MEDC.
4. Upon approval, and if the total of all BAF engagements to date for the business exceeds $15,000, the business must pay a fee to the Hub.
5. Upon approval (and, as appropriate, step 4 payment), the Hub, the business, and the service provider sign a three-way agreement defining roles and responsibilities, known as a letter of engagement (LOE).
6. After the LOE is signed, the Hub notifies the business owner that they may begin working with their service provider on deliverables. It is then responsibility of the client and the service provider to work together to complete all deliverables within 6 months of approval, unless otherwise agreed with the Hub.
7. Following step 6 notification, the service provider may invoice the Hub for the first 50% of the approved amount.
8. Upon completion of deliverables, the business owner must state in writing to the Hub whether they are satisfied with all deliverables.
9. Following a satisfactory notice in step 8, the service provider invoices the Hub for the remaining 50% and the Hub pays final invoice.
10. The Hub and MEDC close out the engagement.

At any time, the business owner may begin working with the Hub on steps 1 and 2 for a follow-up BAF engagement. After step 10, the we may proceed to step 3 for a follow-up engagement.