U.S. Department of Commerce invests $754,840 in CARES Act Recovery Assistance to support medical technology innovators in southeast Michigan

Last Thursday, the U.S. Department of Commerce’s Economic Development Administration (EDA) awarded a $754,840 CARES Act Recovery Assistance grant to Techtown Detroit to support innovation and entrepreneurship in the region’s medical and manufacturing sectors. This EDA grant, to be matched with $249,900 in local investment, is expected to generate $5.5 million in private investment.

“I am grateful to our federal partners for investing in the future of medical technology, manufacturing, and research in Detroit,” said Governor Gretchen Whitmer. “This infusion of resources will generate millions in private investment, support entrepreneurship, and lead to groundbreaking innovations that save lives. With the incoming federal resources and our state budget surplus, Michigan will emerge from the pandemic and jumpstart our economy.”

“TechTown has been helping to build a more resilient and inclusive economy by leveraging this region’s unique assets for more than 17 years, and now we have a partner at the highest level to help us expand our impact,” said Ned Staebler, president and CEO of TechTown Detroit. “With this grant from the Economic Development Administration, we’ll engage 25 regional stakeholders including healthcare systems, local government entities, private investors, universities and economic development organizations to advance regional innovation in medical technology, creating good-paying jobs and helping SE Michigan build back better.”

“This critical support from the Economic Development Administration signals a commitment at the highest level to Detroit’s innovation ecosystem,” said Wayne State University President and TechTown Chair M. Roy Wilson. “With it, TechTown will continue to be a leader in driving the region’s economic recovery through the COVID-19 crisis via its MedHealth cluster. Since 2015, MedHealth has played a critical role in convening, educating and connecting medical innovation stakeholders in the Detroit region, and we are thrilled to work with the EDA to expand programs that will further catalyze entrepreneurship and business growth in the region’s healthcare sector.”

“The Economic Development Administration is committed to helping communities across the nation implement strategies to mitigate economic hardships brought on by the coronavirus pandemic,” said Susan Brehm, director of EDA’s Chicago Regional Office. “This EDA investment in Wayne State’s MedHealth initiative will boost efforts to leverage southeast Michigan’s strengths in healthcare and manufacturing by building the capacity of healthcare innovation ecosystem to accelerate the adoption of new technologies.”

This project is funded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136), which provided EDA with $1.5 billion for economic assistance programs to help communities prevent, prepare for, and respond to coronavirus. EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible?Economic Adjustment Assistance?(EAA) program, provides a wide range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic. 

The mission of the EDA (www.eda.gov) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.

TechTown (techtowndetroit.org) empowers Detroit-based startups and local businesses to start, stabilize and scale by providing resources, collaborative workspace and education for entrepreneurs that will further accelerate inclusive economic development across Detroit.?Since 2007, TechTown has supported more than 4,500 companies, which created 1,600 jobs and raised more than $172 million in startup and growth capital.  

MedHealth (medhealthinnovation.org) is a regional collaboration connecting, convening, and educating the medical innovation ecosystem in southeast Michigan and southwest Ontario to accelerate the adoption of technologies that improve quality of care and contribute to economic growth.