HOUGHTON - When the copper mines closed, community leaders came together to develop a diversified economy by strengthening manufacturing, tourism, service and technology.

Forty years later, the Keweenaw Economic Development Alliance has played a large role in creating an array of local companies in every field strong enough to withstand a nationwide slump.

Rather than spend their main efforts on bringing in entrepreneurs from outside, KEDA worked to assist local start-ups and expanding companies, KEDA Executive Director Phil Musser said. The resulting array of healthy companies has created an atmosphere that is bringing in outside companies such as GE Aviation and Ford.

"Of course, Michigan Tech and Finlandia had a lot to do with that too," Musser said. "They're our main draws."

The group has members across virtually every sector of the Keweenaw, including manufacturing, technology, services, higher education, utilities, banks and non-profits.

In the early part of the decade, KEDA partnered with Michigan Technological University, Houghton and Hancock to apply for one of the then-12 SmartZones being created in Michigan. The MTEC SmartZone, which opened in 2003, has filled three incubators and is working on the fourth.

KEDA has made four loans to business through its microloan program, and eight to 10 through its traditional small business revolving loan funds.

Loans average $35,000, but can vary from $5,000 to $100,000. KEDA just received a $36,000 grant to expand its $250,000 microloan fund.

Most loans, Musser said, have gone to businesses looking to buy equipment they need to expand.

"We do not compete with local banks, but we do loans the banks don't want to do or can't do," Musser said.

As an example, Musser cited SWH Consulting, which needed a loan for $500,000 computer equipment. After that purchase, SWH tripled their revenue and doubled their workforce.

And they paid their loan back in eight months.

"Sometimes a smaller loan is all a company needs to take the next step," Musser said.

KEDA also serves as a point of entry for companies looking for resources.

"It's kind of a complicated process to do that, so we're working on pooling together companies that want to do that and bringing in an expert that can help them get involved with that process," he said.

The value of a KEDA membership is evidenced by the continued interest despite economic turmoil. KEDA recently brought 58 new members on board.

"It would be easy for companies to say, 'Oh, we can't afford to buy a membership to KEDA,'" Musser said. "But that's not what they're saying."

Garrett Neese can be reached at gneese@mininggazette.com.