In an effort to increase support for minority real estate developers spearheading rehabilitation or new construction of mixed-use, multifamily housing projects in Detroit, Capital Impact Partners today launched a $12.5 million Diversity in Development – Detroit Loan Fund. The fund is a new tool for Capital Impact’s long-time commitment to equitable development and inclusive growth in Detroit.
The Diversity in Development – Detroit Loan Fund builds on Capital Impact’s Equitable Development Initiative (EDI), a program comprised of training, mentorship and financing to support historically underserved local developers. In conjunction with EDI, the new fund leverages Capital Impact’s experience working with local developers and community partners to support minority developers in growing their careers and rebuilding their communities. Since launching in 2017, the initiative has had 47 participants in Detroit and has since expanded to Washington D.C.
“We’ve seen great success since launching the EDI program, and we are excited to continue providing opportunities and increasing capital to ensure equitable development in the communities we serve,” said Ellis Carr, president and CEO of Capital Impact. “This fund allows us to further grow this effort and support Detroit’s minority developers who are working to stabilize communities, build affordable housing and revitalize neighborhoods across the city.”
Interested candidates must be locally based, identify as racial or ethnic minorities and have projects with at least five residential units in the city of Detroit. Specific details of the Diversity in Development – Detroit Loan Fund include:
- Loans up to $5 million
- Up to 100% Loan-to-Value
- Loan terms, between two and 10 years
- Amortization up to 35 years
- Minimum equity contribution of 5%
Keeping with its mission of breaking down barriers to success and addressing key social and economic justice issues, Capital Impact hopes the Diversity in Development – Detroit Loan Fund will create a pathway of success for developers who have not been able to enter the real estate industry due to systemic disinvestment. By launching this new fund, Capital Impact can help ensure Detroit’s real estate developers are more representative of the city’s demographic and further the commitment to equitable development and inclusive growth in Detroit.
For more information or to submit an application to the Diversity in Development – Detroit Loan Fund, visit CLICK HERE
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