Minority-owned small businesses in Detroit have a potential new source of business capital, thanks to a $6.5-million lending program being announced today.
Three organizations — the Detroit Development Fund, JPMorgan Chase and the W.K. Kellogg Foundation — are announcing the creation of the fund for Detroit businesses owned by entrepreneurs of color and businesses that primarily hire people of color.
The Entrepreneurs of Color Fund is aimed at boosting economic opportunity for minority-owned businesses in Detroit by providing them with greater access to capital and business assistance. Loan sizes will vary, but the average loan will range from $50,000 to $150,000. Businesses that receive financing will be able to use the capital to expand, finance equipment, address short-term cash-flow needs and provide contractor lines of credit.
The fund will also provide loan recipients with technical assistance, such as networking, marketing, business plan development and cash-flow management.
Eligible businesses must be majority owned by people of color or have more than half their workforce made up of people of color. Businesses can learn more about eligibility by contacting the Detroit Development Fund at 313-784-9547 or firstname.lastname@example.org.
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U.S. Sen. Debbie Stabenow, a Democrat from Lansing, said, “Detroit’s strength has always come from entrepreneurs who have a great idea and can build that into a business that thrives and creates jobs.” She added that “this new public-private partnership will help business owners succeed and grow, creating jobs and opportunity across the region.”