Democratic Gov. Jennifer Granholm unveiled new plans last month to stimulate Michigan’s economy by providing financial assistance to small business owners — and local business owners and experts say they think her plans will be beneficial, but more assistance is still needed.

One of Granholm’s new programs is the Michigan Small Business Financing Alliance, a consortium of 30 credit unions that have agreed to make $43 million in capital available to small businesses. In addition to the Financing Alliance, Granholm also announced that the state would provide funding for the FastTrac program, which offers aspiring entrepreneurs the opportunity to learn how to start their own businesses.

According to Ann Arbor business owners and experts, the Financing Alliance and FastTrac programs will ease the financial strain local businesses are feeling from the economy, in addition to encouraging new startups.

The Financing Alliance intends to help current small business owners and aspiring entrepreneurs by giving out loans that average about $20,000.

State Sen. Liz Brater (D–Ann Arbor) said in an interview last month that she thinks the Financing Alliance will bring some much-needed help to small businesses in Washtenaw County during a tough economic time.

“I think at this point in time it is a very important proposal,” Brater said.

Tom Porter, adjunct lecturer of Entrepreneurial Studies in the Ross School of Business, also said he believes the program will be beneficial for businesses because many small businesses are having trouble obtaining credit in the current financial crisis.

“Throughout the country in the last couple of years, all businesses have found it difficult to obtain credit,” Porter said. “(This program) seems like a program designed to help smaller businesses get the kind of credit that they probably used to get from their banks.”

Brater said she has heard from many small business owners in her district who are having problems obtaining loans.

“(Small business owners) have cash flow issues, and this program is designed to help give relief to small businesses that are having trouble getting their loans that they used to get quite routinely (and) are now drying up,” Brater said. “I think this a good proposal and will be effective.”

Amer Bathish, owner of Amer's Deli, said he likes the concept of the Financing Alliance, but $20,000 is not enough money to help an established business like his.

“I would need more for float money, like $50,000 to $100,000,” Bathish said. “$20,000 will not take you far.”

Bathish said if he received a loan from the Financing Alliance, he would use the money to make improvements in his restaurants instead of hiring more employees.

Bathish said government assistance to Ann Arbor businesses should help with sky-high rent costs because he and other local business owners are paying large sums on rent.

Bathish said he is paying $15,000 a month for his State Street restaurant location and compared the price to rent in downtown New York City.

“The rent in this town is absolutely ridiculous,” he said. “Why are we paying Manhattan rent for little Ann Arbor?”

He added that unlike New York, Ann Arbor businesses only make revenue when students are in town, which is only seven months out of the year.

Village Apothecary owner Garry Turner said the Financing Alliance program is a “step in the right direction” and that he would consider taking a loan from the program for his drug store. But he said the program is not enough, adding that he thinks public policies should focus on relieving the tax burden on small businesses.