The Detroit Development Fund, JPMorgan Chase & Co. and the W.K. Kellogg Foundation recently announced the first four Detroit-based minority-owned small businesses receiving loans and lines of credit from the Entrepreneurs of Color Fund. Winning recipients of the $6.5 million program are Detroit-based neighborhood businesses that are owned by minority entrepreneurs or hire primarily minority employees.
The EOC Fund is intended to increase economic opportunity for disadvantaged and underserved populations in Detroit by providing minority-owned businesses with greater access to financial assistance and business resources for the expressed purpose of expanding established business, hire locally and participate in Detroit’s economic revitalization.
“From the neighborhoods to downtown, Detroit’s success is tied to the success of its residents and growth of its businesses,” said Detroit Mayor Mike Duggan. “There is incredible opportunity for small businesses here in Detroit, and this loan program from the Detroit Development Fund, JPMorgan Chase and the Kellogg Foundation will ensure that businesses here have access to the resources they need to prosper.”
The fund, which is facilitated by DDF, a Michigan 501(c)3 Community Development Financial Institution (CDFI), provides financing for Detroit-based neighborhood businesses and services with a goal of assisting businesses that lack access to traditional forms of credit and capital.
“With the Entrepreneurs of Color Fund we are now able to provide the capital that Detroit’s small businesses need to grow and succeed,” said Ray Waters, President, DDF. “We are grateful for the generous support of JPMorgan Chase and the W.K. Kellogg Foundation, which will allow DDF to increase its business support and lending programs for minority-owned businesses in Detroit neighborhoods.”
The four businesses receiving the inaugural round of funding include:
Power, Lighting and Technical Services, Inc. (PLTS) – $100,000 Contractor Line of Credit and Loan – PLTS, located in Barton-McFarland on Detroit’s west side, provides electrical design and construction for commercial, industrial and residential clients.
Priceless Preservation’s Construction Co. (PPC) – $50,000 Contractor Line of Credit – Also located on the west side of Detroit, PPC provides high quality construction work across the Motor City.
·LoveLifeSwagger – $30,000 Line of Credit – Based in downtown Detroit, LoveLifeSwagger provides high quality, U.S.-made, street wear products to the urban fashion market. Products are manufactured in several U.S. based facilities including one on Detroit’s Eastside. Capital from the EOC Fund will be used to assist with business expansion and job creation.
House of Pure Vin – $145,000 Loan – House of Pure Vin is seeking to become the wine retail store destination in downtown Detroit.
Detroit business people of color currently operate approximately 32,000 small businesses, ranking Detroit as the fourth largest U.S. city for the number of minority-owned businesses..
“This is a partnership that we’re certain will yield formidable results for entrepreneurs of color in Detroit,” said La June Montgomery Tabron, W.K. Kellogg Foundation President and CEO. “We know intentional investment in these entrepreneurs is crucial in helping make these small businesses sustainable, in increasing jobs and in supporting equitable urban development and Detroit’s recovery.”
Funding for the Entrepreneurs of Color Fund is provided by a $3.5 million grant from the JPMorgan Chase Foundation, as part of its $100 million commitment to the city of Detroit’s economic recovery, and a $3 million program-related investment from the Kellogg Foundation.
Interested Detroit small businesses can learn more about eligibility by contacting the Detroit Development Fund at (313) 784-9547 or vholsey@detroitdevelopmentfund.com.
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