Designated as the Entrepreneurs of Color Fund, it will be facilitated by DDF, which is a 501(c)3 non-profit.
Detroit Mayor Mike Duggan explains in a press release:
“For Detroit’s comeback to be a true success, there must be opportunity for the Detroiters who have stayed. This new program fits perfectly with the work my administration is doing with Ken Harris and the Michigan Black Chamber of Commerce to make sure Detroit residents who want to start a business in their city have access to the capital and support they need to be successful.”
JPMorgan Chase Foundation has committed $100 million to the economic recovery and $3.5 million of that goes to the Entrepreneurs of Color Fund while the Kellogg Foundation has provided $3 million. The DDF will provide administration of the money making available short and long-term loans with the average size being $50,000 to $150,000.
Janis Bowdler, Head of Community Development for Global Philanthropy at JPMorgan Chase, says in a company statement:
“Neighborhood businesses are critical to Detroit’s comeback, but many need access to the right capital to grow and thrive. The Entrepreneurs of Color Fund is a unique approach that combines flexible financing and services to strengthen continued business growth in Detroit’s neighborhoods.”
La June Montgomery Tabron, WKKF’s President and CEO, adds:
“The Kellogg Foundation is not new to the idea of creating access to capital for people of color. We know that investment in people of color is essential for equitable and effective urban development and this nation’s sustained economic dominance. We are proud partners with Detroit Development Fund, JPMorgan Chase and others who will join us to improve the economic opportunities for entrepreneurs, who are also parents, to better support their families and ensure success for Detroit’s kids.”
The fund will provide businesses the ability to expand and finance equipment. It will also help business owners with developing business plans and cash flow management.
The Detroit Development Fund, established in 1996 to help small businesses and contractors with term loans and lines of credit, currently manages $23 million in loan capital.
JPMorgan Chase & Co. is a global financial services firm with assets of $2.4 trillion. The firm has committed its global resources to help communities in urgent need of business development.
The W.K. Kellogg Foundation is a philanthropic was founded by in 1930 by breakfast cereal magnate, Will Keith Kellogg, in the belief that all children should thrive. The foundation works primarily with poverty-stricken communities to remove barriers to success.
Interested Detroit small businesses can learn more about eligibility by contacting the Detroit Development Fund at (313) 784-9547 or by email at firstname.lastname@example.org.
Detroit Mural Photo via Shutterstock