Training Grants: Michigan New Jobs Training (MNJTP)
Companies that are creating new jobs in Michigan may qualify for funds to provide training to those new employees. The Kalamazoo Valley Groves Center is committed to assisting eligible employers with the implementation of this program.
Kalamazoo Valley Community College and
The Michigan New Jobs Training Program:
Giving Your Company A Competitive Edge
Increasing Your Competitive Edge
Well-educated and highly-trained employees are critical to the success of your business. A skilled workforce can increase your company's competitive edge through higher productivity and improved morale.
With the Michigan New Jobs Training Program (MNJTP), companies creating new jobs in Michigan may qualify for financial assistance to provide customized training for their new employees. This unique economic incentive allows businesses to partner with Kalamazoo Valley Community College (KVCC) to develop and deliver a training program that produces the highly-skilled employees that they need to be successful.
What Is The MNJT Program?
Designed as an economic development incentive under MCL 389.161-389, the MNJTP authorizes community colleges to issue debt on behalf of employers that are creating new jobs and/or expanding operations in Michigan. The funds can be used to provide a variety of training and employee development needs for those new positions.
With this program, the debt associated with training is repaid through a diversion of the new employee's withholding taxes. In effect, the new employee's training is paid with the funds that would have otherwise been paid to the state for withholding taxes. No new additional dollars are expended to cover the cost of training, making it possible to provide cost-free training to new employees.
How Does The Program Work?
- To begin, employers should contact the Kalamazoo Valley Groves Center to explore the possibilities available to them through the program.
- The Groves Center will work with the employer to identify their training needs and to calculate the amount of funding available from the MNJTP.
- Agreements will be created to "set the clock" and lock in the date from which new employees can be counted for the project. These agreements are preliminary in nature and can be cancelled by either party.
- Once all details are finalized, the final agreement will be approved by the KVCC Board of Trustees.
- KVCC will then raise capital by issuing a bond to the employer. The employer will pre-pay KVCC for the training.
- After the agreement is finalized and approved, the employer will begin diverting the new employee's withholding taxes away from the state and sending them to KVCC. KVCC will then divert the state withholding taxes back to the employer.
- As the program progresses, KVCC will administer the training funds and will ensure that the employer training needs are being met.
Frequently Asked Questions
|How is the loan amount determined?||Funds available are determined by training needs and the projected withholding revenue available to repay the debt. For example, let's assume you have 10 new jobs, with those new employees making $20/hour, 40 hours a week for 52 weeks. Their wages for the first year would be $416,000. Assuming a state income tax withholding rate of 4.35%, the funds available for the first year would be $18,096. The duration of the loans can span from 1-10 years. If the company in this example were to opt for a 5-year loan, the amount of funds available would be $90,480 ($18,096 x 5).|
|What can the funds be used for?||The funds can be used for any direct training expense, including: Adult Basic Education, job-related instruction, skills assessment, training equipment, training materials & supplies, training services, testing & evaluation of employees, travel costs, college tuition & books, and administrative expenses.|
|What happens if an employee resigns?||The MNJTP funds follow the positions, not the individuals hired into those positions. The employer is still liable for the amount of the withholding tax diversion for the certified positions under the contract.|
|Who is eligible for this program?||
If you are engaged in business and have employees in the state of Michigan, you may be eligible to take advantage of the MNJTP. Employers in Michigan may enter into an agreement under the program if they are creating new jobs in this state that:
For more information about the Michigan New Jobs Training Program, please contact Trish Schroeder, Director of Corporate Training, Kalamazoo Valley Groves Center, 269.353.1275, or by email at email@example.com.