Four years after Michigan launched the 21st Century Jobs Fund to diversify its economy and create jobs, the first two major initiatives under the 10-year, billion-dollar program have helped Ann Arbor companies.

A handful of small companies that received loans look promising, a handful have failed and only a small number of direct jobs have been created. Venture capital firms outside the state that were awarded millions have been slow to invest in Michigan businesses. And the majority of the grants, loans and investment dollars went to recipients in one city: Ann Arbor.

Of the 27 companies that took advantage of loans they were awarded in the fund's first business competition in 2006, two-thirds are based in the college town.

And eight of the 12 Michigan-based businesses that received venture capital or other kinds of investments call Ann Arbor home.

Many of the small companies that received loans say the money has proved critical to their survival. "It's really helped enable a lot of growth in our company," said Michelle Crumm, co-founder and chief business officer of Adaptive Materials. The Ann Arbor maker of portable fuel cell power systems for the military used the $6.3-million loan it received to buy new manufacturing equipment and to develop its products.

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