Light on the Horizon for Minority Developers in Detroit
Minority developers in the Detroit Metro area will be seeing a helping hand, thanks in part to JP Morgan Chase & Co and Capital Impact Partners.
The companies have banded together, dedicating a total of $5 million to help minority developers expand and cultivate their businesses during the economic recovery period currently underway in the Motor City.
Their program will be titled the Equitable Development Initiative.
This initiative will include access to vital training opportunities and new streams of capital. Training that will be readily available to participants will include one on one mentoring from local experts as well as a formal educational system designed to target the necessary skills required for successful developmental businesses.
The program is scheduled to last for two years and is “designed to kick-start the development of small- and mid-size mixed-use, multifamily residential projects in the city’s mixed-use corridors,” according to a recent news release.
The two companies involved in the initiative both have ties to the Detroit region and have pledged their help and support during the city’s revival period.
JP Morgan Chase & Co had previously announced a $150 million investment to Detroit which would be allocated over a five-year period.
Capital Impact Partners, although headquartered in Arlington, Virginia, has several offices in Detroit, and currently extends loans and financial services to underserved parts of the US. Detroit had long been on their radar. The company has since pledged that it will continue to raise more capital funding for the two-year program and will presently carry the balance of the $5 million already allotted for the series.
The project stemmed from an investigation completed by Capital Impact Partners into the allotment of the $152 million which had been loaned to the city of Detroit from 2006-2015. Only 10% of the financing went to minority developers, despite Detroit being the fourth-largest city for minority-owned small businesses.
The project is yet another action that will serve Detroit in the future, as the influx of investment capital being poured into the Motor City will only strengthen both the economic structure and the real estate market. Investors who are sinking their teeth into Detroit will see a light at the end of the tunnel as these current investments come to fruition in the upcoming years.
News & Image Source: http://www.crainsdetroit.com/article/20171019/news/642461/capital-impact-partners-launches-5-million-program-to-help-minority